The Financial Services Federation (FSF) is pleased to announce Afterpay as a member, the Federation’s only Buy Now Pay Later (BNPL) provider.
“We are delighted to welcome Afterpay as our newest member, growing our base of responsible lenders that contribute to the important policy discussions and initiatives that make New Zealand one of the leading non-bank lending sectors in the world,” says Lyn McMorran, Executive Director of the Financial Services Federation.
“The FSF is committed to responsible lending, innovation in financial services, and competition that supports consumers and businesses across the country. We are satisfied that Afterpay’s approach to helping its customers and merchants is aligned with these values.”
Afterpay is one of the leading BNPL providers internationally and has operated in New Zealand since 2017. The product is free when payments are made on time, and allows consumers to spread the payment of goods and services over six to eight weeks.
“BNPL is an increasingly popular and valuable payment service in New Zealand. When used responsibly, it helps consumers to manage their budgets while giving retailers of all sizes the opportunity to acquire customers through more flexible payment options,” McMorran says.
In September 2023, the Government passed regulations bringing BNPL providers within the Credit Contracts and Consumer Finance Act (CCCFA) with certain tailoring, which the then Minister of Commerce and Consumer Affairs described as “striking a balance between reducing risk for vulnerable consumers and ensuring fit for purpose rules for the sector.”
“Like all membership applications, the FSF’s Executive Committee must be satisfied that the applicant meets membership criteria, including prioritising compliance with the CCCFA and a commitment to responsible lending, and this process has been no different.”
“We look forward to working with Afterpay and all our members to continue advocating for fit-for-purpose regulations while promoting responsible lending practices across Aotearoa New Zealand,” McMorran says.
Michael Saadat, International Head of Public Policy for Afterpay, says:
“Afterpay’s platform was built to encourage responsible spending and our consumer safeguards are fundamental to how Afterpay works. We look forward to continuing to work with the FSF and the New Zealand community to provide a safe and transparent financial option for customers.”