In recent years, the consumer credit landscape has seen a rise in “Buy Now Pay Later” (“BNPL“) transactions. BNPL generally refers to a service/arrangement where a service provider partners with a merchant to allow customers to pay for purchases of goods/services on a deferred payment term, without compound interest, either by way of a single lump sum or fixed term instalments.
In response to concerns that BNPL may potentially cause excessive debt accumulation, an industry-led effort by the Singapore FinTech Association (SFA) and various industry players (under the guidance of the Monetary Authority of Singapore developed the BNPL Code of Conduct (“CoC“) which was published on 20 October 2022, and takes effect on 1 November 2022.
This Update highlights key aspects of the CoC.
For more information, click here to read the full Legal Update.
