Buy-now-pay-later schemes trigger MAS concerns over consumer debt risk
Singapore
THE speed and ease with which consumers can obtain unregulated credit via buy now, pay later (BNPL) schemes have sparked growing concerns over unseen debt and potential financial distress.
This has prompted several authorities, including Singapore's, to look into regulating the industry as the use of BNPL products continues to grow.
The Monetary Authority of Singapore (MAS) on Thursday confirmed that it is, along with other government agencies, "reviewing the appropriate regulatory approach" for such schemes.
BNPL firms offer zero-interest instalment payment plans for retail goods, appealing to their target market of credit-starved, cash-strapped millennials and Gen Zs.
These schemes are a form of unsecured consumer lending, with late fees imposed if repayments are missed. But as BNPL products are relatively new, the sector is still larg…
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