PAYDAY NEWS’ Post

📢 Big news in the financial sector (in AU, Let's get this right NZ)! The Federal Government has introduced legislation to regulate Buy Now Pay Later (BNPL) services like AfterPay, Klarna, and Zip Pay under the National Consumer Credit Act. If passed, this will ensure BNPL providers are subject to the same consumer protections as credit cards and loans. This move aims to ✅ balance increased consumer protection with ✅ maintaining innovation and competition. #FinanceNews #BNPL #ConsumerProtection

Australians using buy now, pay later (BNPL) services will soon be subject to new regulations. The government announced a plan to bring BNPL under the National Consumer Credit Protection Act, requiring providers to obtain credit licenses and perform basic credit checks. This move aims to protect consumers from potential debt spirals while fostering a competitive and innovative credit market. The reforms follow a surge in BNPL popularity, with nearly half Australians reportedly using these services. Read more 👉https://lnkd.in/gB5KsCtH #FintechInvestment #BNPLregulation #BankingOperations #FinancialTechnology #FinTech #OpenBanking #API #AI #Digitalization #Technology #Australia #Innovation with SHAVIK Visit www.SHAVIK.ai

Australians using buy now, pay later (BNPL) services will soon be subject to new regulations. The government announced a plan to bring BNPL under the National Consumer Credit Protection Act, requiring providers to obtain credit licenses and perform basic credit checks. This move aims to protect consumers from potential debt spirals while fostering a competitive and innovative credit market. The reforms follow a surge in BNPL popularity, with nearly half of Australians reportedly using these services. Read more 👉https://lnkd.in/eCKU_KVq #FintechInvestment #BNPLregulation #BankingOperations #FinancialTechnology #FinTech #OpenBanking #API #AI #Digitalization #Technology #Australia #Innovation with SHAVIK Visit www.SHAVIK.ai

Australia Introduces BNPL Rules Australia government has introduced a new consumer protection legislation for Buy Now Pay Later (BNPL) that will see BNPL operators regulated as consumer credit. Most BNPL products are currently covered by the National Consumer Credit Act. The new legislation will: - Amend the credit act to require BNPL providers to hold an Australian credit licence. - Operater will need to comply with the existing credit laws regulated by ASIC. - Establish a new category of low-cost-credit under the Credit Actro reflect the lower risk & cost of BNPL compared with other regulated forms of credit. BNPL providers will still need to consider whether a product is suitable & affordable for consumers. The government recognises the competitions BNPL has introduced into credit markets and estimates it supports more than 120,000 local jobs & adds up to $18.4 Billions to GDP. #fintech #bnpl #rules Source: Ministers Tresury.

Two European trade associations have issued a letter raising objections to the UK’s proposed interchange fee cap for payments originating from European issuers, saying that the proposal could harm the EU’s financial systems. UK legislators proposed the new rules after a review found that UK businesses paid an additional £150 million to £200 million in interchange fees to EU credit card companies in 2022. These fees are incurred when consumers use an EU-issued debit or credit card to make online purchases from UK businesses. Read more: https://ow.ly/sXca50SYMXB #payments #creditcard #crossborder #EU #interchangefee

Much awaited #BNPL regulation, coming from Australia this time, one of the countries with the highest adoption of BNPL. #Customerproctection should be at the heart of any ruling, while granting the business case for service providers is also a must. #Digitalpayments #payments #Newmeansofpayment #Alternativepaymentmeans

BNPL regulation coming ‘soon’ as City Minister warns of ‘black hole of debt’. ❗️ New regulation governing the use of buy now pay later (BNPL) payments is coming “soon”, City Minister Tulip Siddiq has said as she warned of a “black hole of debt” caused by the technology. Speaking at the Labour Party Conference in Liverpool, the economic secretary to the Treasury told UKTN she has “started” the regulatory process, in line with Labour’s campaign promise to bring BNPL under stricter rules. ➡️ https://lnkd.in/ew8KV99W 🔗 #bnpl #technology #regulations #fintech #payments #UKtech

Would you like to stay updated with the latest insights and tips in the world of payments? Make sure to subscribe to our newsletters in Swedish, Norwegian, and Danish and receive valuable information directly to your inbox! 💡📧 #swedbankpay #betalvärlden #payments #nyhetsbrev #news

🏛️ EU Instant Payment Regulation! What is it all about? Let’s break it down The European Parliament has passed new regulations to ensure that € transfers between retail customers and businesses across the EU are completed instantly: Max settlement speed ➡️ 10 seconds  Max amount ➡️ €100.000 Charges ➡️ cannot be higher than what banks/ PSPs charge for ‘Credit Transfers’ Implementation date ➡️ Starting from 8 April 2024, 🇪🇺 Banks will have 9 months to receive and 18 months to initiate transfers, while 🇪🇺 PSPs will have 36 months to both send and initiate  The banks that currently support credit transfer, are mandated to support instant payments as per the regulations #Instantpayments #Accounttoaccount #merchants #Openbanking #payments #SEPA

The Consumer Financial Protection Bureau recently stipulated that BNPL providers are credit cards, enabling consumers to dispute charges and claim refunds directly to the BNPL provider. This is going to have serious ramifications for the infinite number of embedded BNPL providers. I don’t have statistics on disputes and refunds for BNPL vs. credit card, but credit cards are around 0.50%. BNPL providers will need to build out teams to manage disputes and refunds, which will further impact the margin profile of these companies. Lending is already a challenging game and this will further impact unit economics. 🤔