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Financial watchdogs want the rules about Buy Now Pay Later schemes strengthened, saying the last tweak didn't work.

It's been described as both a lifeline, and a trap.

Buy Now Pay Later (BNPL) has been in New Zealand for about eight years. It's still a relatively new product, but one million Kiwis use one of the four companies providing it.

However a new report from Consumer NZ and FinCap, with research done by Victoria University, has raised concerns about the damage BNPLs are doing to some borrowers.

The report says a regulatory tweak in the rules in 2024 did nothing to help prevent harm, and financial mentors report people are trying to break in

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