Not regulated. However, BNPL service providers under the guidance of MAS have produced and adopted an industry-led code which provides guidelines and enforcement mechanisms for BNPL services. New BNPL providers are required to comply with the Code prior to offering services in Singapore.
No. MAS have determined that the regulation of BNPL could limit consumer choice and reported that the total value of BNPL transactions is only 1% of total debit and credit card payments for 2022.
However, the code provides certain conditions for BNPL providers. Under the code BNPL providers are required to undergo an audit by an independent assessor to ensure that they are Code compliant. The Singapore Fintech Association then assesses their accreditation. If successfully accredited, they can display an accredited Trustmark indicating compliance with the Code for three years, before having to be re-accredited.
In addition, a private credit bureau set up by Experian facilitates the credit information sharing process across BNPL providers to assist with consumer affordability assessments.
Breaching the BNPL Code is not without consequence, a BNPL provider can lose its accreditation and suffer reputational damage.
MAS will be informed should breaches of the Code result in a BNPL provider losing its Trustmark.
MAS will closely monitor compliance with the Code and consider stronger regulation if necessary.
