Singapore augments BNPL guidelines to mitigate consumer risks

Targeted to be ready in the second half of 2022, the guidelines aimed to ensure BNPL would have a ‘positive impact’ on Singapore consumers, as per the Singapore Fintech Association (SFA). The industry group added that it had established a working alliance to develop the BNPL framework.

The non-profit organisation has a membership of 800 comprising different stakeholders from the fintech sector, including large financial institutions, ecommerce marketplaces, payment platforms, and early-stage startups. According to SFA, it consists of members Grab, Atome, and Hoolah and will operate under the guidance of industry regulator, Monetary Authority of Singapore (MAS).

The consortium would develop a collection of documents to provide behavioural guidelines and enforcement measures for organisations that offer BNPL services. This framework would hold SFA members to the ‘highest ethical and professional standards’ in conduct and practice, the association said. It would also aim to promote a fair and ethical environment to safeguard consumer interests and build user confidence around BNPL services and providers.

More specifically, the working group will develop principles aimed to uphold fairness, transparency, and inclusivity. Decision-making processes should be transparent and outcomes should serve all consumers, particularly those in vulnerable circumstances, SFA said.