Bank of Thailand to Tighten Control Over Buy Now Pay Later, New Regulations Expected by End of 2026

“Buy now, don’t have to pay yet—why wouldn’t you buy?”

This phrase may be heard more often as more Thais try Buy Now Pay Later (BNPL) loans through various platforms. These loans let consumers pay in full later or in installments, making spending easier in the digital era. However, on a national scale, this behavior could lead to hidden debt for many Thais.

How big is BNPL in Thailand?

Vittaya Ratanakorn, Governor of the Bank of Thailand (BoT), said one urgent structural issue Thailand must address is "debt." Currently, over 25.5 million Thais, about 38% of the population, have debt. Among young workers aged 20-35, over 52.7% incur debt early, and this group also has the highest proportion of non-performing loans (NPLs) at 27%, mostly from non-income-generating debt such as credit cards, personal loans, and vehicle loans.

Recently, BNPL loans have attracted attention as a large and rapidly growing credit market in Thailand over the past four years. Initial surveys by BoT found that

• the BNPL loan value in 2024 is 17.908 billion baht, growing 38% annually.
• The number of BNPL accounts reached 4.91 million, nearly doubling (99.9% increase) per year.

A key concern is that BNPL users tend to be young and low-income, with debtors in the student and first-jobber group (ages 23-30) having higher default rates than other groups.

Could BNPL debt cause serious problems in the future?

Debt is not always negative; it depends on individual discipline. BNPL offers broad access to credit, but behavioral data shows it may lead to future debt issues. The latest BoT insights on BNPL users highlight three main points:

1. Users may not realize they are taking on a loan when making payments. Some users think they are simply choosing a payment method, unaware they are using credit.

2. Attractive promotions may encourage easier purchase decisions. This makes it difficult for users to revert to paying the full price later.

3. Spending discipline may worsen. The option to pay minimum installments can encourage more spending on unnecessary or luxury items.

Based on these findings, the BoT plans to strengthen oversight of BNPL service providers.

Where will BNPL regulation start?

Vittaya explained that the Bank of Thailand will not regulate the platforms themselves but will supervise BNPL lending directly. Currently, BNPL lenders fall into two groups:

• 1. Operators licensed as Digital Lending Ploan providers, who may not analyze income but use alternative data, with loan limits of 20,000 baht per borrower and interest rates capped at 25% per year.
• 2. General loan providers with no loan limit but interest rates capped at 15% per year.

The BoT will issue new regulations specifically for BNPL, targeting release by the end of 2026 (with clearer guidelines expected around October-November 2026). Initial measures may include:

• Setting user qualifications, such as minimum age requirements.
• Defining service scope, including types of products and minimum product values.
• Capping maximum interest rates.

A key principle is that BNPL loans must provide clear, complete, and easy-to-understand information without encouraging borrowing. Customers must be aware they have credit limits, are using credit, and are repaying BNPL debt.

However, the Bank of Thailand will not regulate companies selling their own products with installment options, nor will the new announcement cover regulation of loan apps.

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