There are a number of instalment plans, which are similar to BNPL, but which do not meet the definition under the Code of Practice. These include some companies which allow you to split payments directly with them (rather than through a BNPL Provider), and also products which are in effect instalment plans supported by a credit card.
The definition of a BNPL Product or Service under the Code is:
A shorter-term product or service for the purchase of goods or services where the purchase price is repaid in equal instalments. Consumers pay no extra charges if they pay within a specified period;
a product or service that is a continuing credit contract for the purchase of goods or services.
Some contracts require a minimum periodic repayment; others involve a fixed repayment plan for each purchase. Multiple advances of credit may be available.
Fees and charges are limited to $200 in the first year and $125 in each subsequent year;
there is a contract between the customer and the BNPL Provider, and a contract between the customer and the Merchant or Retail Partner;
and the customer buys and receives goods or services from a Merchant or Retail Partner; the BNPL Provider pays the Merchant or Retail Partner for the purchase (minus merchant fees); and the customer repays the Buy Now Pay Later Provider for their purchase.
For the avoidance of doubt, the following types of product or service, or any arrangement of a similar nature, are not a BNPL Product or Service for the purposes of this Code:
Products or services offered to persons or strata corporations that are predominantly for a purpose that is not a consumer purpose (e.g. to be used for a business purpose). ‘Predominant’ (as defined in s5(4) of the National Credit Code) means: (a) the purpose for which ‘more than half’ of the credit is intended to be used and (b) if the credit is intended to be used to obtain goods or services—the purpose for which the goods or services are intended to be ‘most used’; and
BNPL Products or Services that are offered as part of a product under the National Credit Code.