The Australian government has announced plans to tighten regulations on the buy now, pay later (BNPL) industry. Financial Services Minister Stephen Jones announced that BNPL providers will be required to hold a credit license and follow Responsible Lending Obligations, as well as meet minimum industry standards and hardship requirements. Jones stated that the government’s plan aimed to bring BNPL in line with other credit providers while protecting vulnerable groups in society. The regulation will be introduced by the end of 2023 after collaboration with consumer groups and the industry. Despite the benefits of BNPL, such as contributing $18.4 billion to Australia’s GDP, the government has voiced concerns about its impact on women, First Nations communities, and low-income earners. Political parties have varied responses to the announcement, with the Greens urging the government to freeze rents or mortgages to address the cost-of-living crisis. Consumer advocacy group CHOICE has called for strong requirements regardless of the loan amount, while the peak industry body, Financial Counselling Australia, is concerned about over-commitment risk without the inclusion of BNPL providers in the credit reporting system.