Singapore’s BNPL Firms Must Comply With Code of Conduct by Nov 2023by Fintech News Singapore November 9, 2023
The Buy Now, Pay Later (BNPL) Code of Conduct, developed by the BNPL Working Group, has entered its next phase of implementation.
Starting 1 November 2023, all existing BNPL service providers in Singapore must comply with the code. They are also required to undergo an audit by an independent assessor to ensure compliance and obtain accreditation by 31 March 2024. New BNPL entrants will have to comply with the code before offering their services in Singapore.
The BNPL Code aims to promote industry best practices and mitigate the risk of consumer over-indebtedness. To facilitate credit information sharing among BNPL providers, a private credit bureau has been set up by Experian. This will enable BNPL firms to consider a customer’s outstanding balances across different providers when conducting credit assessments.
The implementation of this credit bureau could potentially prevent situations like Turochas Fuad’s BNPL company, Pace, from filing for voluntary winding up due to liabilities.
An Oversight Committee (OC) has also been formed to supervise and monitor code compliance and foster high standards of professionalism in the industry.
The BNPL service providers that are in compliance with the code are Ablr, Atome, Grab, LatitudePay, SeaMoney, and ShopBack. Once accredited, these providers will be able to display an accredited Trustmark indicating their compliance with the code for three years.
Consumers can look out for this Trustmark on BNPL providers’ websites and other collaterals starting 1 April 2024.
Shadab Taiyabi, President of SFA said,
“We are extremely pleased that all current providers of BNPL in Singapore are making significant positive progress with our Code of Conduct.
This has all been done with the protection of consumers in mind, to make sure those benefiting from using BNPL in Singapore can do so in a protected and trusted environment. This Code of Conduct is robust and now enforceable, we look forward to seeing the impending positive impact we know it will have on the industry.”
Andrew Tan, Executive Director (Prudential Policy Department), MAS said,
“The industry has worked hard over the past year to implement the standards and safeguards in the BNPL Code, particularly to establish a credit information sharing process.
We look forward to BNPL firms’ successful accreditation and earning the Trustmark by April 2024, which will help consumers recognise firms that have implemented the Code fully. The effective adoption of BNPL Code will improve consumer outcomes for BNPL users and mitigate risks of debt accumulation.”