A recent decision of the Auckland District Licensing Committee has highlighted the concerns of alcohol-related harm at liquor stores offering Buy Now Pay Later (BNPL) services.

BNPL services offer consumers the ability to be almost instantly approved with credit. The service being used for alcohol retail purchases has been an issue that has been raised before.

In a recent hearing, the Auckland District Licensing Committee ruled in favour of the prohibition of BNPL services at a bottle shop in Panmure, noting that the businesses had faced negative comments over such services.

The committee also stressed that there is the potential for alcohol-related harm from any premises offering the BNPL method.

Alcohol Healthwatch, which presented evidence in the hearing, welcomes the decision of the licensing committee.

The organisation said that the use of BNPL services to purchase alcohol increases its perceived affordability, which can lead to increased consumption and related harm.

In addition, the Salvation Army gave evidence that nearly 200 of its clients had significant BNPL debts amounting to almost $1000 per person. These clients were said to often struggle with multiple debts, poor financial literacy and face physical and mental health issues. 

Andrew Galloway, executive director of Alcohol Healthwatch, considered the decision as a stern warning to alcohol retailers offering BNPL, as their applicants will likely face challenges from reporting agencies.

“There is no place for buy now pay later schemes for Aotearoa New Zealand’s most harmful drug,” Galloway stressed.