The Trap of Buy Now, Pay Later? When Thais Unknowingly Accumulate Debt, BOT Plans Stricter BNPL Controls by End of 2026

"Want to buy something? Even if you don’t have enough money today, you can pay in installments."  "Buy Now, Pay Later"

In an era where technology makes installment payments and mobile shopping increasingly easy, a new problem has arisen: some people don’t realize they are actually taking out loans. Especially the "buy now, pay later" model like Buy Now Pay Later (BNPL). This is why the Bank of Thailand (BOT) wants to increase its oversight.

What is Buy Now Pay Later (BNPL) and how widespread is it in Thailand?

Thais are among Asia’s top users of mobile phones and online time. When it comes to online shopping, many have used Buy Now Pay Later, a type of unsecured personal loan. Usually embedded in apps as a payment option, simply looking at your mobile phone carefully may reveal that your payment choice is "buy now, pay later," which might include fees or loan interest.

For example, Shopee offers SPayLater, TikTok has TikTok Pay Later, Grab provides PayLater by Grab, and years ago Kasikorn Bank launched K PAY LATER credit. Interestingly, BNPL doesn’t have a fixed format; interest rates vary depending on whether the provider is regulated by the Bank of Thailand or not.

Although BNPL currently lacks a specific business license or classification as a new type of credit, recent data collected by BOT shows BNPL has grown quickly and steadily over the past four years.

• The value of BNPL credit in 2024 reached 17.9 billion baht, growing 38% annually.
• The number of user accounts reached 4.91 million, nearly doubling with a 99.9% annual increase.

However, this growth hasn’t been purely positive; concerns have risen that have led BOT to seek regulatory balance.

How far has BOT planned?

Recently, Vittaya Ratanakorn, Governor of the Bank of Thailand (BOT), discussed BNPL regulatory progress at the "Beyond ESG Thailand Transition #Changing the Country’s Future" seminar hosted by Prachachat Business. He said that by September 2026, BOT will hold public hearings with related agencies and expects to issue licenses for BNPL providers to start operating in the fourth quarter of 2026.

BNPL is one of four main structural issues BOT aims to address: 1. household debt, 2. credit access for SMEs and individuals, 3. fairness in financial services, and 4. grey money and corruption.

Additionally, BOT will oversee non-bank financial operators, which currently number over 3,600 entities across 24 categories, accounting for 75% of accounts and 55% of credit volume compared to commercial banks and specialized financial institutions (SFIs), which hold 25% of accounts and 45% of credit volume.

What might BNPL regulations look like?

Previously, BOT has used historical data, statistics, and regulations as the foundation for oversight. Financial services standards have been adjusted in areas including fair customer treatment (Market Conduct) and responsible, fair lending.

For BNPL, Thairath Money wants to discuss three key areas where BOT is expected to tighten control.

1. People must realize they are taking on credit.  

Currently, it’s easy to select installment payment options, but many don’t recognize this as debt. Some financial institutions report BNPL data to the National Credit Bureau (NCB), so if borrowers are unaware and delay payments, their credit records could be negatively affected in the future.

Furthermore, since BNPL is a loan creating debt, borrowers must be aware, consent before use, and understand interest rates, repayment terms, and loan rights. Importantly, they need to know their total outstanding debt from all BNPL and other credit, and receive reminders to encourage timely payments.

2. Age  

Currently, BNPL users tend to be younger. BOT may worry that this causes early debt problems, so it might set a minimum age for BNPL use, aligned with the age when people begin earning income and can repay loans (currently credit is generally available starting at age 20).

3. Credit limits / conditions on certain product categories

Before granting credit, providers might need to assess repayment ability (affordability) to set appropriate credit limits or impose clear conditions on purchases of specific product types.

Finally, both users and providers should watch how BOT defines details. BNPL’s popularity likely stems from providing easier credit access through new channels, with platforms using alternative (non-financial) data to offer credit. The key question is how balanced BOT’s regulations will be for BNPL.

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