BNPL functions in largely the same way as other forms of credit, and carries the same risks. In recent years, BNPL has increasingly appeared in the debt mixes of people in financial hardship who seek assistance from financial counsellors, community legal centres, and other community services. As of mid-2023, financial counsellors reported that a majority of their clients had BNPL debts – and those clients that do had an average of three separate BNPL debts. The fact BNPL is not regulated as credit means these people in financial hardship currently do not have the same consumer protections as they would for other forms of credit.
