Buy now pay later services will have to check if consumers can afford the debt they're taking on as the government cracks down on the industry.
Services including After Pay, Laybuy and ZipPay allow people to get the goods with one upfront payment - and pay the rest off in instalments.
They can be charged late fees if they default, but unlike credit cards there's no interest. The services are not currently covered by the Consumer Finance Act so don't have to check if people can afford the repayments.
But that's set to change. Commerce & Consumer Affairs Minister David Clark explains.
