BNPL providers must adhere to code compliance
The Buy Now, Pay Later (BNPL) Working Group, formed by the Singapore Fintech Association (SFA) and the Monetary Authority of Singapore (MAS) has officially welcomed the next phase of implementation for its Buy Now, Pay Later Code of Conduct (BNPL Code).
More from OMY: What is the BNPL Code of Conduct and how will it affect you?
Effective 1 November, all existing BNPL service providers are now mandated to adhere to the BNPL Code. Furthermore, by 31 March 2024, accreditation under this code is a requisite for all BNPL providers.
Recognized BNPL players in Singapore, such as Ablr, Atome, Grab, LatitudePay, ShopBack, and SeaMoney, are among those impacted by this mandatory compliance.
Notably, new entrants into the BNPL market must also ensure compliance with the code before offering their services in Singapore.
As outlined in the BNPL Code, one key provision introduces the establishment of a private credit bureau aimed at facilitating credit information sharing among BNPL providers. Additionally, BNPL service providers are now obligated to undergo audits conducted by independent assessors to verify their adherence to the stipulations outlined in the code.
To oversee and ensure compliance with the BNPL Code, an Oversight Committee (OC) has been appointed.
The OC comprises notable industry figures, including Adrian Ang, a partner at Allen & Gledhill LLP; Rose Tong, executive director of the Singapore Retailers Association; Rolf Haudenschild, co-founder and head of Regulatory & Risk Services at Ingenia Consultants; and Tan Huey Min, general manager of Credit Counselling Singapore.
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