PATTAYA, Thailand – The Bank of Thailand (BoT) is preparing new regulatory measures for Buy Now Pay Later (BNPL) services as the sector experiences rapid expansion and growing concerns over household debt risks, particularly among younger working-age users. BoT Governor Vitai Ratanakorn said the central bank is drafting four regulatory frameworks to bring BNPL services under formal supervision. The proposed rules will include minimum user age requirements, product eligibility criteria, spending limits, and interest rate caps. The measures are expected to be enforced by the end of 2026.
The move comes after BNPL accounts were found to be growing at an average rate of nearly 100% per year, with outstanding credit expanding by around 38% annually, or approximately 18 billion baht. Officials noted that more than half of BNPL users are aged between 20 and 35, with this group also showing the highest non-performing loan ratio at 27%. The central bank said the regulations aim to prevent excessive borrowing and encourage responsible consumption, particularly as BNPL services have so far operated outside direct financial supervision in Thailand. The new framework will apply mainly to online platform-based credit services and will not cover installment payments made directly with merchants or manufacturers. In addition to BNPL oversight, the BoT is tightening monitoring of high-value cash transactions. Deposits and exchanges involving cash exceeding 5 million baht will now require disclosure of the source of funds and transaction purpose. This expands existing rules that previously focused mainly on large cash withdrawals.
According to the BoT, stricter monitoring has already shown early results. In April, the number of cash withdrawal transactions exceeding 5 million baht fell by 28%, while total withdrawal value declined by 25%. Governor Vitai also highlighted ongoing debt relief initiatives. The “Quick Debt Resolution, Move Forward” program has already helped restructure 102,277 accounts, with expectations to reach 200,000 accounts in the second half of the year. Meanwhile, the SME Credit Boost scheme has approved 5.4 billion baht in new loans, with total lending projected to reach 40 billion baht in 2026. On the rollout of virtual banks, the BoT stated that concerns over potential impacts on household debt levels are limited, noting that initial lending volumes are small compared to Thailand’s total household debt of over 16 trillion baht. The central bank said virtual banks could improve financial inclusion, particularly for underserved borrowers.
However, regulators will closely monitor virtual bank operations under the same supervisory framework as existing commercial banks, with additional rules applied where necessary. Regarding the CP Group’s virtual bank application through ACM Holding, the BoT said it is reviewing proposed structural adjustments to ensure compliance with licensing requirements before submitting its recommendation to the Ministry of Finance. The group has approximately one year to finalize any necessary changes. Governor Vitai also addressed concerns about artificial intelligence (AI) and employment in the banking sector, stating that the impact in Thailand remains limited for now as AI adoption is still in early stages. He noted that recent workforce reductions in commercial banks were largely part of pre-existing restructuring plans rather than direct AI-driven job displacement. The BoT said it will continue monitoring technological changes closely as the financial sector evolves. (TNA)
