Thailand's Central Bank to Regulate Buy Now, Pay Later Providers

Thailand's central bank plans to introduce licensing and lending rules for buy now, pay later providers amid concerns over rapid consumer debt growth. According to Sina Finance, Bank of Thailand Governor Vitai Ratanakorn said borrowers must be at least 18 to 20 years old, BNPL rates will be capped at 15% to 20%, credit limits will not exceed 20,000 baht per borrower, repayment terms will be limited to six months, and cash withdrawals will be banned. He said BNPL lending volume rose 56% year on year, with new borrowers accounting for 45% of all users. Vitai added that Thailand currently has more than six BNPL operators. The central bank plans to hold a public hearing on the draft rules at the end of September and formally issue the regulations in the fourth quarter. Thailand's central bank also plans to strengthen oversight of non-bank financial institutions. It said there are currently 24 types of non-bank financial licenses covering more than 3,600 institutions, and Vitai said the central bank will add staff and use artificial intelligence to step up supervision of the sector.