An estimated 7 million Australians use buy now pay later to make purchases, but the federal government is placing limits on who providers can market to and who can access their services. It says new rules that bring buy now pay later under Credit Act are aimed at better protecting millions of people who use the products. Companies will soon be required to hold an Australian Credit Licence and will need to carry out more affordability checks on customers to ensure they don't get into too much debt. Firms also won't be allowed to raise spending limits without permission, will need better complaint processes and will face limits on how they can market their products and caps on fees charged for missed and late payments. Australia and the UK are among the first countries to move to regulate the industry, which could result in some smaller players exiting the market.

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