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There have been no reported breaches of Singapore's Buy Now, Pay Later (BNPL) Code of Conduct since its introduction in 2022, according to the government’s minister for trade and industry.
Gan Kim Yong, who is also deputy prime minister and the chair of the Monetary Authority of Singapore (MAS), was responding to a question from parliamentarian Ong Hua Han.
He stated that all four BNPL providers in Singapore have been independently assessed and accredited as compliant with the code since May 2024.
The code, developed by the Singapore FinTech Association (SFA) in collaboration with the BNPL industry and under the guidance of the MAS, aims to mitigate debt accumulation risks and safeguard consumers.
An independent oversight committee is responsible for investigating potential breaches, and accredited BNPL providers that are found to be in violation risk losing their accreditation.
However, in his response, Gan confirmed that the SFA has not received any reports of non-compliance.
Although the MAS does not collect specific data on BNPL users who have reached their credit limits, the minister noted that safeguards are in place to prevent excessive debt.
These include rules suspending users from making further BNPL purchases if payments are overdue, as well as existing MAS regulations requiring financial institutions to suspend credit cards for borrowers who are more than 60 days past due on repayments.
