Bank of Thailand Sets Three-Month Deadline for BNPL Licensure with Strict Consumer Protection Rules

Key summary

The Bank of Thailand (BOT) has announced new regulations requiring Buy Now, Pay Later (BNPL) businesses to obtain a specific license within three months of the announcement's effective date. The framework mandates that borrowers must be at least 20 years old, limits individual loans to 20,000 baht with a maximum repayment period of six months, and caps total interest and fees at 15% per annum. Regulations also prohibit lending for illegal goods, cash-equivalent items, or converting credit into cash, while requiring clear disclosure of debt terms and fair debt collection practices. The rules apply to digital platforms processing transactions exceeding 100 million baht annually or serving more than 5% of the population on average monthly. TTB Bank's Thakorn Piyanan praised the age restriction for protecting youth but suggested extending protections to elderly consumers, while Kiatnakin Pholaram Research noted BNPL growth is outpacing credit cards and personal loans.