Thai Consumers Trapped by Rapid 99% Annual Growth of Buy Now Pay Later on Cross-Border Platforms

Thai consumers are caught in the "Buy Now Pay Later" trap on cross-border platforms, experiencing a 99.9% annual growth rate that encourages risky behaviors, unnecessary spending, and debt accumulation from a young age. The Bank of Thailand is preparing regulatory measures to manage this issue.

Currently, with the rapid growth of digital payment trends, the "Buy Now Pay Later" service has become a highly popular payment method among Thai consumers, covering everything from everyday goods to travel expenses, offered by multiple financial platforms. Buy Now Pay Later (BNPL) has become a highly popular payment method among Thai consumers, covering everything from everyday goods to travel expenses, offered by multiple financial platforms. Data from

the Bank of Thailand shows that in 2021 there were about 600,000 BNPL accounts, but by the end of 2024, the total had grown to 4.91 million accounts, representing an average annual growth rate of 99.9%, indicating the strong momentum of this payment method. The Office of the National Economic and Social Development Council

conducted a surveyon BNPL usage behaviors among people aged 15 to 55 in 11 provinces, with a sample size of 2,945 respondents, to study behaviors and risks associated with BNPL. The findings revealed that Generation Y is the largest user group at 60.1%, followed by Generation Z at 26.4%, and Generation X at 13.5%.Although the survey found that most users—96.2%—were able to repay debts on time without defaulting in the past six months, only 3.1% had ever defaulted, and just 0.7% were currently in default, the noteworthy issue is the change in spending behavior after using BNPL services.

Among Generation Z BNPL users, 63.3% earn less than 15,000 baht, a higher proportion than Generation Y and X users. Most of Generation Z (38%) spend on clothing, shoes, and accessories, reflecting risky behavior that may lead to excessive debt in the future.

• Easy debt accumulation: Over 62.3% of BNPL users admit the service speeds up their purchasing decisions, and 57.6% agree they are more likely to buy unnecessary items if installment payments are available.
• Changing financial habits: 47.5% of BNPL users tend to prioritize spending for personal enjoyment over saving or investing.
• BNPL users often receive incomplete information from platforms; 15.3% reported never or only occasionally receiving information about interest rates. Meanwhile, 34% want government regulation of BNPL through legislation, and 29.9% desire fair controls on interest rates to prevent excessive charges.
• The Bank of Thailand views the rapid growth of BNPL services as potentially leading to long-term economic and social problems, including promoting unnecessary consumption, encouraging young people to incur debt early, and contributing to household debt issues. The Bank is accelerating preparations for regulatory measures, expecting clear BNPL guidelines by October–November this year, with enforcement beginning by the end of 2024.