BNPL CoC SRA – SFA Briefing

On April 27, 2023, the Singapore Retailers Association (SRA) welcomed the presence of the Singapore Fintech Association (SFA) for a briefing on the Buy Now Pay Later (BNPL) Code of Conduct (CoC) guidelines. The event brought together key industry players and stakeholders to discuss the development and implementation of the code, ensuring an accountable environment for consumers engaging in BNPL services.

The BNPL Code of Conduct serves as a guidance framework for BNPL service providers, aiming to address concerns of consumer over-indebtedness and foster a fair and ethical environment. It was developed by the industry itself, with guidance from the Monetary Authority of Singapore (MAS), signifying the industry’s commitment and maturity in self-regulation.

To create the code, SFA facilitated a Working Group (WG) comprising BNPL providers who collaborated in drafting the guidelines. Several rounds of feedback and deliberation took place within the WG, and stakeholders such as the Consumers Association of Singapore (CASE) and SRA were consulted for their valuable input.

The Final Code, which was 100% endorsed by all BNPL providers, represents the industry’s collective commitment to ensuring responsible practices. The implementation of the code involves several key initiatives. Firstly, the establishment of a Credit Bureau for customer credit risk assessment will aid in responsible lending practices. Secondly, an accreditation process will be carried out by independent auditors to ensure code compliance, resulting in the awarding of a Trustmark. Lastly, an Oversight Committee will be formed to enforce the Code, ensuring its efficacy and adherence.

The primary objectives of the BNPL Code of Conduct are to foster the adoption of responsible BNPL practices, reduce the likelihood of vulnerable consumers facing financial difficulties due to BNPL schemes, ensure fair dealing, safeguard against misleading information, and address the risk of increased overall indebtedness.

By establishing a Trustmark and conducting audits, the industry aims to encourage the adoption of the BNPL code while ensuring its enforceability. These measures will instil consumer confidence in BNPL services and create an accountable ecosystem for both providers and consumers.

The BNPL Code of Conduct briefing marks a significant milestone in the BNPL sector in Singapore. Through industry collaboration and self-regulation, the code will contribute to the development of a responsible and sustainable BNPL industry, addressing consumer concerns and promoting fairness and transparency in financial transactions.

Thank you to our event attendees!