Banks tighten buy now, pay later rules

Krungthai Bank (KTB) and Kasikornbank (KBank) are scrutinising their buy now, pay later (BNPL) services and adjusting their business strategies to align with stricter regulatory oversight.

- SOMRUEDI BANCHONGDUANG

The Bank of Thailand is promoting a responsible lending approach, and KTB responded by offering more cautious BNPL services, said president Payong Srivanich.

The central bank has pushed for tighter supervision of the financial sector, and KTB wants to provide lending services responsibly, with a focus on borrowers’ needs, repayment capacity and credit quality, he said.

“We agree with the regulator's efforts to establish a more sustainable framework for the BNPL market, which has expanded rapidly amid rising household debt,” said Mr Payong.

Vitai Ratanakorn, governor of the Bank of Thailand, recently said the central bank is drafting regulations for BNPL services following the rapid expansion of the sector, particularly among lower-income consumers and younger people.