Banks tighten buy now, pay later rules (opens original article in a new tab)

Bangkok Post reports that Thailand's central bank is drafting stricter regulations for buy now, pay later (BNPL) services amid rapid growth, prompting banks like Krungthai and Kasikorn to adjust their strategies. The regulations may include age limits, product restrictions, and interest rate caps, aiming to ensure responsible lending as BNPL loans surged to 17.9 billion baht in 2024.

• Central bank drafts BNPL regulations due to rapid expansion, especially among lower-income and younger consumers.
• Krungthai Bank and Kasikornbank adjust BNPL strategies to align with stricter oversight, focusing on responsible lending and borrower repayment capacity.
• New regulations may include minimum age requirements, product category limits, and interest rate caps, expected by year-end.