Singapore BNPL players to follow new code of conduct by March 2024
SINGAPORE’S Buy Now, Pay Later Code of Conduct (BNPL Code) has entered its next phase of implementation, according to a working group of BNPL companies in the country.
The code, which aims to protect consumers and ensure responsible lending practices, requires existing players to comply from Nov 1, 2023 and be accredited by Mar 31 next year. New entrants must also go through the same process before offering BNPL services.
The BNPL Code was launched by the Singapore FinTech Association and some industry players in October 2022, under the guidance of the Monetary Authority of Singapore. Six BNPL companies operating under the code are Ablr, Atome, Grab, LatitudePay, SeaMoney, and ShopBack.
The code specifies safeguards to mitigate the risk of consumer over-indebtedness. This includes creditworthiness checks, fair and transparent fees, ethical marketing practices, voluntary exclusion options, and financial hardship assistance.
IT services company Experian has also set up a private credit bureau through which BNPL providers will share credit information across firms. An oversight committee will supervise and monitor compliance to the code.
To further guarantee compliance, these firms will undergo an audit by an independent assessor. The six named BNPL firms have chosen PricewaterhouseCoopers to conduct the first assessment.
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If the BNPL providers prove to be compliant, they will be awarded a trustmark, which is valid for three years. It will be displayed on the companies’ websites and other collaterals from Apr 1, 2024. TECH IN ASIA
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