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Buy now, pay later code of practice

The world’s first BNPL code of practice has launched, and we’re not only a member of it, we’ve taken everything we know and helped to create it.

Over the last year, Brighte along with other BNPL providers recognised developing the BNPL Code of Practice was an opportunity to set best industry standards and ensure a continued focus for consumers as the industry grows.

The BNPL code reflects our focus on customers, and our core belief that Aussie families deserve an affordable way to pay to complete their comfortable and sustainable homes. As a Code Compliant Member, we are proud to play a part in ensuring customer needs are always front and centre.

So what is the Buy Now Pay Later Code of Practice?

Essentially the BNPL code goes further than what the law currently requires of the BNPL industry. It protects consumers by creating best practice standards for the BNPL industry and preserves consumers' choice on how they would like to pay.

How does this protect consumers?

The BNPL code sets out nine commitments and obligations for BNPL providers, some of these include;

  • upfront assessments and ongoing checks
  • making sure our customers have access to internal complaints handling processes that have quick and fair resolutions,
  • and if they cannot be resolved, are able to refer their complaint to AFCA
  • providing hardship assistance to customers that experience financial difficulties
  • further information on product terms and conditions.

Who was involved and why was it developed?

After findings by Senate Economics Reference Committee and ASIC’s Report 600, the Buy Now Pay Later Industry saw an opportunity to create standards and further protect consumers. The Australian Finance Industry Association (AFIA), BNPL members and key stakeholders including consumer advocates collaborated to create the BNPL code, to ensure value and confidence to consumers, advocates, ASIC and other stakeholders.

As the code was developed by BNPL providers, do they monitor it?

No, compliance with the code is reviewed annually by the Code Compliance Committee (CCC). CCC is completely independent of AFIA and BNPL providers, instead, it is comprised of industry and consumer representatives.

What does self-regulation mean?

Self-regulation is more targeted and more agile than legislation or regulation, making it particularly useful in regulating emerging and innovative products and services like Buy Now Pay Later.

When will the code be effective?

The BNPL Code takes effect from 1st March 2021.

How can I find more information?

For further information about the BNPL Code, accreditation process, our Complaints and Hardship policies, please see the links below.

Different BNPL providers products and services offer different features and charge fees in different ways. For more information on BNPL code compliant members fees and charges, visit AFIA.