Time for Singapore to regulate buy now, pay later schemes

THE buy now, pay later (BNPL) segment of the personal loan market has come under greater scrutiny, with Australia announcing it will introduce new laws governing these unsecured credit players and the United Kingdom drafting legislation to regulate the sector.

Singapore has adopted a “light touch” approach to BNPL regulation. A BNPL working group – formed by the Singapore Fintech Association (SFA) and BNPL industry players, under the guidance of the Monetary Authority of Singapore (MAS) – has come up with an industry code of conduct.

The code sets out dos and don’ts for members. For instance, credit should be capped at S$2,000 unless an individual completes a credit assessment.