Analysis-Australian buy-now, pay-later sector faces fresh hurdle: regulation

FILE PHOTO: Small toy shopping cart is seen in front of a displayed Afterpay logo in this illustration taken, August 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

SYDNEY (Reuters) - When Melbourne barista Melinda Elliott had to cut back on casual work shifts this year, she asked her buy-now, pay-later (BNPL) provider, Afterpay, to lower her credit limit. She did not want debt she could not afford to repay.

The Australian company, owned by Twitter founder Jack Dorsey's Block Inc, cut her limit to A$2,000 ($1,300) from A$3,000, but a few months later she added up the debts in her account and saw the limit had returned to A$3,000, the maximum available.