New guidelines introduced to ensure responsible lending and consumer protection
Singapore’s Buy Now, Pay Later (BNPL) Code of Conduct is entering its next phase, with existing BNPL providers required to comply from November 1, 2023, and to be fully accredited by March 31, 2024. New BNPL entrants must also meet the same standards before offering services.
Launched by the Singapore FinTech Association in October 2022, the BNPL Code aims to protect consumers by promoting responsible lending practices. This includes key safeguards like creditworthiness checks, fair and transparent fee structures, ethical marketing, voluntary exclusion options, and assistance for financial hardship.
A credit bureau set up by Experian will help BNPL providers share consumer credit data, while an oversight committee will ensure compliance with the code. Additionally, BNPL firms will undergo audits by independent assessors, with PricewaterhouseCoopers selected to conduct the first assessments.
Six BNPL firms—Ablr, Atome, Grab, LatitudePay, SeaMoney, and ShopBack—are currently operating under the code. These firms will earn a trustmark for demonstrating compliance, which will be valid for three years and displayed on their websites and other marketing materials starting April 1, 2024. This marks a significant step in enhancing consumer protection and maintaining the integrity of the BNPL sector.
