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The Bank of Thailand moves to close regulatory loopholes as the surge in \u2018invisible\u2019 BNPL debt threatens to undermine national financial stability.<\/p>\n
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The Governor of the Bank of Thailand (BOT), Vitai Rattanakorn, has signalled a tightening of law enforcement and oversight for \u2018Buy Now, Pay Later\u2019 (BNPL) services, warning that the sector’s rapid growth poses a mounting threat to the country\u2019s financial system.<\/p>\n
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Under current Thai law, BNPL transactions are not technically classified as “loans”, meaning they operate outside the direct jurisdiction of the central bank.<\/p>\n
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However, the BOT has expressed concern that these services have evolved into a significant systemic risk that requires urgent intervention.<\/p>\n
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The central bank\u2019s primary concern is that BNPL debt currently exists “off the radar”.<\/p>\n
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Unlike traditional credit, these transactions are not reported to the National Credit Bureau, preventing a comprehensive assessment of household debt levels.<\/p>\n
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“We are beginning to see heightened risks from BNPL as transaction volumes surge,” Governor Vitai stated. “Because these businesses do not provide direct loans in a legal sense, they aren’t under BOT oversight. Our priority is to find a pathway to bring them under our supervision to close these structural loopholes.”<\/p>\n
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