Federation welcomes new member

The Financial Services Federation (FSF) has announced Afterpay has joined its ranks and become the only buy-now, pay-later (BNPL) provider among its members.

Afterpay is one of the leading BNPL providers worldwide and has operated in New Zealand since 2017. The product is free when payments are made on time and allows consumers to spread the cost of goods and services over six to eight weeks.

Lyn McMorran, FSF’s executive director, says she’s delighted to welcome Afterpay as a member and grow the federation’s base of responsible non-bank lenders that contribute to policy discussions and initiatives.

“The FSF is committed to responsible lending, innovation in financial services, and competition that supports consumers and businesses across the country,” she adds. 

“We are satisfied that Afterpay’s approach to helping its customers and merchants is aligned with these values.”

McMorran, pictured, notes BNPL is an increasingly popular payment service in New Zealand and the government passed regulations bringing such providers within the Credit Contracts and Consumer Finance Act (CCCFA) in September this year.

As with all membership applications, the FSF’s executive committee must be satisfied an applicant meets membership criteria, including prioritising compliance with the CCCFA and a commitment to responsible lending.

“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 adds.

Michael Saadat, Afterpay’s international head of public policy, says the company’s platform was built to encourage responsible spending and its consumer safeguards are fundamental to how it 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,” he continues.