The BNPL Code of Conduct aims to protect consumers and ensure that BNPL offerings benefit Singapore’s ecosystem
SINGAPORE, 20 October 2022 – The Buy Now, Pay Later (BNPL) Working Group, formed by the Singapore FinTech Association (SFA) and industry players including Atome, Grab Financial Group and ShopBack, under the guidance of the Monetary Authority of Singapore (MAS), today launched its Buy Now, Pay Later Code of Conduct (BNPL Code). The BNPL Code sets out guidance for BNPL service providers in Singapore to protect consumers and ensure that BNPL offerings will continue to benefit the ecosystem.
As part of its aim to safeguard consumers against over-indebtedness, the BNPL Code signifies the industry’s commitment to abide by a fixed set of standards. It aims to crystallise best practices including:
To encourage the adoption of and ensure compliance with the BNPL Code, BNPL providers will be required to undergo an audit and accreditation process which will allow them to display an accredited trustmark showing customers that they are compliant with the BNPL Code.
The next phase of rollout which includes setting up of the credit information sharing bureau, completing the accreditation process, and awarding the trustmark to accredited BNPL providers, is expected to be completed in late 2023.
Commenting on the launch of the BNPL Code, Ms Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said “The BNPL Code sets out important industry-agreed standards and safeguards to mitigate the risk of debt accumulation and protect the interests of users. We thank the SFA and members of the BNPL Working Group for working together to develop the Code and look forward to the industry’s effective implementation of the standards. We will continue to monitor developments in the BNPL sector and work with the industry to address any risks to consumers.”
Mr Shadab Taiyabi, President of the SFA, stated: “The launch of the BNPL Code represents a significant step forward within the industry to ensure that the consumers’ interests are prioritised. Given the growth potential of the BNPL industry in Singapore, we are confident that the BNPL Code will be able to set the standards for existing and future providers in Singapore, fostering greater trust and transparency between these providers and the consumers they serve.”
Ms Leanne Lim, Regional Head of Compliance, Atome, said: “The BNPL Code heralds an important phase for the industry in Singapore, and we are honoured to have contributed to its formation, under the SFA’s and MAS’s guidance. We remain committed to continue working with industry stakeholders to monitor developments, promote financial, social, and digital inclusion while safeguarding consumer interests.”
Mr Wong Wenbin, Head of Grab Financial Group Singapore, said: “We are pleased to have partnered with the SFA, MAS as well as fellow industry players in the development of the BNPL Code of Conduct for Singapore. The BNPL Code puts in place clear guidelines for consumer protection and a framework that enable service providers to continuously innovate to better serve the different consumer needs. We believe this is a signal that the industry is maturing, and we hope it will help to accelerate financial inclusion. Ultimately, this will benefit users as providers like us can push the boundaries of innovation through technology within set parameters that protects our consumers.”
Mr Arvin Singh, Co-founder, hoolah and Vice President of Payments and Partnerships, ShopBack said: “The establishment of the BNPL Code marks a significant milestone and a major step forward for the industry in Singapore. We are committed to continuing this work alongside SFA and industry peers to ensure the best experience for consumers while growing the BNPL ecosystem sustainably.”
About Singapore FinTech Association (SFA)
The SFA is a cross-industry non-profit organisation. Its purpose is to support the development of the FinTech industry in Singapore and facilitate collaboration among the participants and stakeholders. The SFA is a member-based organisation with over 800+ members. It represents the full range of stakeholders in the FinTech industry, from early-stage innovative companies to large financial players and service providers. To further its purpose, the SFA also partners with institutions and associations from Singapore and globally to cooperate on initiatives relating to the FinTech industry. Well-connected globally, the SFA has signed over 70 international Memorandum of Understanding (MoU) to lay the network for its members and ecosystem.
The Buy Now, Pay Later (BNPL) Working Group Participants:
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Elizabeth Yeong, on behalf of SFA