Alarm bells over 'buy now, pay later'

State planning unit concerned by trend

- WICHIT CHANTANUSORNSIRI

The government's planning unit has expressed concern over the growing trend of “buy now, pay later” (BNPL) consumption through online platforms, which has now spread to cover instalment payments for food and fuel expenses, stimulating households to take on excessive debt.

Speaking during a briefing on Thailand's social conditions for the second quarter of 2025, Danucha Pichayanan, secretary-general of the National Economic and Social Development Council (NESDC), noted that some lending applications now allow borrowers to pay in instalments for restaurant meals or even fuel.

In reality, such expenses should be paid in full, not in instalments, he said, adding that this expansion of BNPL practices will intensify and further strain the country's household debt burden.

"If people need to pay for food or fuel in instalments, it should be considered a sign of crisis. The government must step in and find ways to address this issue," Mr Danucha said.

According to Mr Danucha, online lending apps that contribute to rising household debt pose four key problems.

Firstly, loan approvals are granted without considering borrowers' existing debt obligations.