Data on "Buy Now, Pay Later" Transactions and Updating Practice Code to Reduce Purchase Limit for Those Below 21

Mr Cai Yinzhou asked the Prime Minister and Minister for Finance (a) whether MAS will consider updating the Buy Now, Pay Later (BNPL) Code of Conduct to lower the maximum purchase limit for those below 21 years old; and (b) whether MAS will consider coordinating across BNPL providers such that a unified spending limit is applied per individual customer and the total sum shared between all accredited BNPL platforms.

Let me first reassure the Member that there are safeguards in place to limit the risk of consumers getting into unsustainable debt. All "Buy Now, Pay Later" (BNPL) firms operating in Singapore have committed to implement protections in line with the BNPL Code of Conduct. A user's BNPL facility will be suspended once a payment is overdue. The BNPL firms have committed to cap late payment fees, disclose them clearly and not subject outstanding amounts to compound interest. The BNPL firms also cannot grant customers a limit over $2,000 without additional credit assessments, including BNPL credit bureau checks.

While growing, BNPL transactions remain small. It accounts for less than 2% of the value of total credit card and debit card payments in the first half of 2025.

The Monetary Authority of Singapore (MAS) is collecting information from BNPL firms through surveys to monitor the use of their services and assess if they pose a concern. From our survey, 1.5% of BNPL firms' customers are below 21 years old. The median BNPL user with missed payments had outstanding amounts below $400 in aggregate across all BNPL firms and the vast majority have outstanding amounts below $1000. Rather than charging interest, the industry typically charges a late fee that is disclosed up front. While there is no need for further measures at this time, MAS will continue to monitor the situation and will review how to enhance our surveys to better monitor the sector.