Singapore’s BNPL code of conduct needs to pave way for independent regulation

SINGAPORE’S buy now pay later (BNPL) players ramped up self-regulation with the launch of a code of conduct last week – including an accreditation process, the setting up of a credit data bureau and the formation of an oversight committee (OC) for compliance.

This is a step forward for the sector, but does not go far enough. The code is restricted in how much it can protect consumers, and its enforcement is complicated by a questionable method of appointment for the OC.

Safeguards under the code include a S$2,000 limit on outstanding payments that consumers can accumulate with a BNPL provider (unless they complete an additional credit assessment) and transparent fee structures with no compounding interest.