Reports of Non-compliance with Buy Now, Pay Later (BNPL) Code of Conduct and Data on BNPL Customers

Mr Ong Hua Han asked the Prime Minister and Minister for Finance (a) how many instances of non-compliance with the Buy Now, Pay Later (BNPL) Code of Conduct by accredited BNPL providers have there been since its introduction in 2022; (b) since then, how many and what percentage of BNPL customers have hit their BNPL limit for at least one provider; and (c) what is the breakdown of these BNPL customers by age and income level.

The Buy Now, Pay Later (BNPL) Code of Conduct (Code) was developed by the Singapore FinTech Association (SFA) and the BNPL industry under the Monetary Authority of Singapore's (MAS') guidance. The Code sets out standards to mitigate the risk of debt accumulation and protect the interests of users. While compliance with the Code is voluntary, SFA has put in place an accreditation process for BNPL providers to be independently assessed for compliance with the Code. All four BNPL providers in Singapore have been independently assessed and accredited to be in compliance with the Code since May 2024.

An independent oversight committee, comprising qualified and experienced members, is responsible for investigating suspected breaches of the Code by accredited BNPL providers. Accredited BNPL providers that breach the Code could lose their accreditation. We understand from SFA that there have not been any breaches of the Code reported to it thus far.

MAS does not collect data on the number and profile of BNPL users that have fully utilised their BNPL limit. Nonetheless, the consumer protection standards in the Code, such as suspending users from making further BNPL purchases once a payment is overdue, coupled with MAS' requirements on unsecured credit, including suspending credit cards, which could be used to meet BNPL payments, for borrowers who are more than 60 days past due in their repayments will help limit the risk of excessive debt incurred through BNPL.