Australia has become the first country to implement a standard for Buy Now, Pay Later services such as Afterpay and Zip Pay.

The new code, which will come into effect shortly, is the first of its kind that has been pledged by the emerging sector to improve its safeguards for customers.

It means companies such as Afterpay, Klarna and Zip will need to adhere to new rules that will cap the number of late payments someone can accrue, as well as having mandatory financial checks before they purchase anything.

The code will also see providers not allowing users under the age of 18 being able to use the product.

Companies will also be forced to take some partial payment upfront before offering a service.