Bank of Thailand Plans Tighter Rules for Buy Now, Pay Later Services

The Bank of Thailand (BOT) plans to introduce stricter regulations on "Buy Now, Pay Later" (BNPL) services in December, aiming to tackle rising debt issues and ensure "financial immunity" for the public. The central bank emphasized that these new rules are not meant to hinder innovation or eliminate this popular form of consumer credit, but rather to maintain credit growth within established standards and manage associated risks.

According to a BOT survey of seven major providers, BNPL credit accounts grew by an average of 90% annually, and credit amounts increased by 88% year-over-year. In 2024, providers issued a total of 22 billion baht across 4.23 million accounts, which rose to 48 billion baht across 8.15 million accounts by the end of 2025. As of the first half of 2026, credit had reached 57 billion baht across 11 million accounts.

BNPL services have seen explosive growth, reflecting a significant shift in consumer behavior and posing increasing risks for users, particularly younger generations and "fragile" demographic groups who may accumulate unmanageable debt. Under the proposed regulations, BNPL users must be over 20 years old, with credit limits capped at 20,000 baht and repayment obligations completed within six months.

Combined interest, penalties, and fees would be limited to 15% per year. Credit lines cannot be converted to cash, digital money, withdrawn, or transferred to other credit accounts.

The BOT invited public feedback on the proposed measures, which include five new regulations: age requirements for BNPL users, credit limit caps, interest rate caps, prohibitions on converting credit lines to cash or transferring them to other accounts, and the requirement for fair repayment practices and transparent disclosure of outstanding balances and interest.

BOT Governor Vitai Ratanakorn highlighted the rapid expansion of BNPL compared to personal loans and credit cards, warning that unregulated access to credit could exacerbate debt problems, especially among younger and financially vulnerable consumers.