One in five consumers using buy now, pay later miss payments, but ASIC stops short of imposing new regulation on the sector

Australia's corporate watchdog says some consumers are having to cut back on essentials such as meals because of debt they have racked up from using buy now, pay later, warning one in five consumers are missing payments. Key points: ASIC has stopped short of recommending that buy now, pay later players be regulated in the same way as credit card companies The corporate watchdog's review into six buy now, pay later players found that some were causing consumers harm The industry is also developing a code of conduct, but consumer advocates have warned that self-regulation does not work But the Australian Securities and Investments Commission has stopped short of recommending that the sector be regulated in the same way as credit card companies, despite concerns from consumer advocates that it is just another form of credit that allows people to take on too much debt. "When consumers have got more than one of these products and they're trying to get on top of paying every fortnight and then the late fees as well, they really get into that financial vulnerability and go without their essential living expenses in favour of trying to pay their Afterpay or their other buy now, pay later provider," she said. "There is also a risk that consumers may be paying inflated prices for some goods and services when using a buy now, pay later arrangement," the report said. Flexigroup chief executive Rebecca James said buy now, pay later finance was an "affordable and flexible financing option" for consumers.