LatitudePay has announced it will be closing for good on April 11th this year, affecting thousands of customers of major retailers JB Hi-Fi, Kogan and The Good Guys who have used the payment option to buy a range of products.
The announcement was made on Friday, citing the uncertainty around the current buy now, pay later (BNPL) market in Australia.
LatitudePay was available at more than 5,000 retail merchants and was believed to have been used by half a million customers in Australia.
What to do if you are a current LatitudePay customer
Your current payment plan remains unchanged, and payments must be made as usual as set out in the Payment Plan Agreement.
Payments must continue on active accounts, otherwise customers will still incur late fees and it may affect their credit score if they aren’t made.
Current customers can continue to make purchases up to and including April 11, 2023.
Need more information? LatitudePay customers head here for more FAQs and support.
BNPL services under scrutiny in Australia
In an official statement on its website, the organisation said it remained “fully supportive” of regulation of the BNPL industry. It also said, “as a consequence of the uncertainty surrounding the future regulatory environment, Latitude believes now is the right time to exit the sector”.
Latitude is the second BNPL product to cease operations in the Australian market, following the closure of Openpay earlier this month.
Recently, corporate watchdog ASIC made a submission to Treasury on improving the regulation of BNPL as a result of growing concerns about the harm to customers using the schemes.