Thailand's central bank plans to introduce new regulations by the end of 2026 to curb the rapid growth of buy-now-pay-later services. Governor Vitai Ratanakorn is concerned that easy access to digital credit is fueling household debt, particularly among young consumers.
The Bank of Thailand's planned crackdown on buy-now-pay-later services highlights a growing global concern about the risks of easy digital credit fueling consumer debt, potentially impacting economic stability and financial inclusion for vulnerable populations.
Thailand's central bank is preparing to introduce new regulations by the end of 2026 to rein in the burgeoning buy-now-pay-later (BNPL) sector, as concerns mount over its contribution to the country's already high household debt levels. Governor Vitai Ratanakorn highlighted that BNPL services are increasingly being used for small, everyday purchases, encouraging unnecessary borrowing among consumers.
BNPL loans surged to 17.9 billion baht in 2024, with the number of accounts ballooning from 620,000 in 2021 to 4.91 million. User numbers are estimated to reach 5-6 million this year. The central bank noted that students and individuals in their first jobs exhibit the highest delinquency rates within the BNPL market. This trend exacerbates Thailand's existing debt burden, which stands at 16.44 trillion baht, equivalent to 86.7% of its GDP, one of the highest ratios in Asia.
Officials pointed to instances where small purchases, such as a 50-baht chicken rice meal or a 106-baht bubble tea, are financed over several months through BNPL, often at interest rates ranging from 16% to 18%. This widespread availability of digital credit is seen as a significant factor encouraging over-borrowing.