The Singapore FinTech Association (SFA) is leading the “Buy Now, Pay Later Working Group” (BNPL WG), an industry-led initiative that will develop a BNPL framework for the local market.
BNPL WG aims to address the issue of debt among consumers. For this, it will launch a BNPL Framework in the second half of 2022.
The framework will focus on three key issues: protecting consumer interests, focusing on outcomes that promote innovation and consumer safeguards, as well as upholding fairness, transparency, and inclusivity.
“BNPL has established itself as one of the key emerging trends of Singapore’s innovative FinTech ecosystem, with the potential to unlock significant benefits for Singapore consumers with sufficient guardrails implemented,” said Shadab Taiyabi, president of the SFA.
The group has already added BNPL firms Ablr, Fave, Latitude Pay, Pace, Rely, Split, and Zip to the initiative. It is also calling on other BNPL players to participate by April 8, 2022 and is eyeing a series of closed-door consultations with stakeholders.
Last February, MAS told Tech in Asia that it – along with other agencies – was reviewing the appropriate regulatory approach for BNPL and was working on a regulatory framework. This comes as the sector has been relatively unregulated and after issues of hidden fees surfaced.
Singapore’s BNPL market is expected to hit US$773.9 million in payments in 2022.