Key facts
- Thailand's central bank plans to introduce new regulations by the end of 2026.
- The regulations aim to curb the growth of buy-now-pay-later services.
- Governor Vitai Ratanakorn expressed concern about easy access to digital credit.
- The central bank is concerned about rising household debt.
- Young consumers are a particular focus of concern regarding debt accumulation.
- The move aims to address financial instability from increased consumer borrowing.
Thailand's central bank is preparing to introduce new regulations by the end of 2026 aimed at curbing the rapid growth of buy-now-pay-later (BNPL) services. Governor Vitai Ratanakorn stated that the central bank is concerned about the ease of access to digital credit and its potential to exacerbate household debt levels. The governor specifically highlighted concerns regarding the impact on young consumers, who may be more susceptible to accumulating debt through these services. The initiative reflects a proactive approach by the Bank of Thailand to manage the financial risks associated with the expanding BNPL market and to promote financial stability within the country. The proposed regulations are expected to address aspects such as lending limits, responsible lending practices, and consumer protection measures within the BNPL sector. This move comes as BNPL services have seen significant uptake, offering consumers a convenient way to make purchases through installment payments, but also raising alarms about potential over-indebtedness.