The Bank of Thailand has approved new BNPL (Bill of Loans) regulations; six companies are expected to require new licenses, effective in Q4 2026.

The Bank of Thailand (BOT) revealed that the Financial Institutions Development Committee (FIDC) has approved preliminary guidelines for regulating loan-to-value (BNPL) loans, and is preparing to issue new licenses. The regulations are expected to be implemented in the fourth quarter of 2026. It is anticipated that at least six businesses will meet the regulatory criteria and will be required to apply for new licenses. The BOT will also expand regulation to non-bank financial institutions, enhancing consumer protection.

September 3, 2569 – Mr. Witai Rattanagorn, Governor of the Bank of Thailand (BOT) , stated after attending the Beyond ESG: Thailand Transition #ChangingThailand'sFuture event, organized by Prachachat Business, that the initial guidelines for regulating loan-to-value (BNPL) loans have been approved by the Financial Institutions Policy Committee (FIPC).

It is expected that the guidelines will be finalized by the end of September. After that, suggestions and observations will be incorporated to revise the guidelines before the formal issuance process begins. We are confident that they can be announced and implemented within the fourth quarter of this year.

“In essence, a new type of license will be issued for BNPL operators. Therefore, a period of time is needed for interested businesses to prepare and comply with the established criteria. Currently, it is estimated that there will be approximately 6 or more businesses involved in BNPL, mostly companies that provide financing for the purchase of goods through various platforms. Both the lenders and the supporting platforms are required. Businesses wishing to operate in this manner must comply with the established regulations; without a license, they will not be able to conduct business.”

Mr. Witai further stated that, regarding the regulation of non-bank businesses, there are currently 3,600 operators in 24 categories under authorization, regulation, or registration. Furthermore, some non-bank businesses may be used as channels for irregular transactions or as conduits for certain types of transactions. These issues will be brought under increased scrutiny.

Expanding the scope of supervision is a significant challenge for the Bank of Thailand. From previously regulating approximately 30-40 businesses, it will now need to expand to around 3,600 businesses across various groups. The majority will be non-bank businesses, encompassing various types of lending, from title loans and secured personal loans to nano-finance, non-performing loans (BNPLs), and credit cards. In addition, it will include other businesses such as electronic payment systems and foreign exchange.

“Considering the number of accounts, approximately 75% are in the microfinance sector, particularly personal loans and various other types of loans, while about 20-25% are with banks and financial institutions. However, if we consider the value, approximately 55% is in the non-bank sector. This reflects the significant role of non-bank businesses in the financial system and their need for appropriate regulation and consumer protection.”

The Bank of Thailand therefore needs to prepare systems and tools for supervision, and also allow financial institutions and related businesses time to prepare. At the same time, the Bank of Thailand must adapt, increase its personnel, and update regulations and laws to suit the new supervisory model. For the resources available to support the supervision of approximately 3,600 businesses, it is necessary to expand personnel and introduce technology to assist in inspections. While the supervision may not be as in-depth as the inspection of commercial banks, the level of inspection will need to be significantly increased.

However, in the past, the Bank of Thailand (BOT) focused primarily on overseeing deposit-taking financial institutions, prioritizing the stability of the financial system and the protection of depositors, especially the risk of financial institution failure and the inability to return deposits to the public. Currently, the nature of risk has changed. The banking system has become stronger, reducing the risk of bank failures and deposit defaults. Meanwhile, customer protection risks have become more important, such as customer exploitation, unfair terms and conditions, or interest rates exceeding legal limits.

Mr. Witai stated that over the past four years, BNPL services have grown tenfold, with the number of users rapidly increasing from around 600,000 to 6 million.

The most worrying aspect is the debt-increasing behavior of young people. It has been found that 45% of young people taking out their first loans are in the "New to Credit" group (those with no prior credit history). The number of loan accounts is growing at an average rate of +78.9% per year, and the value of BNPLs (Bills of Lading Loans) is growing at an average rate of +56% per year.

"If these things aren't managed properly, they can cause systemic problems for society, including bad debt and people getting into debt too quickly."

Regarding the framework of measures and conditions that the Bank of Thailand is preparing to use to control BNPLs in order to prevent systemic impacts and social problems, it is necessary to clearly define the qualifications and limitations of users.

Under the new license system, specific licenses are required for BNPL businesses as follows:

• The minimum age for users is set at (18-20 years old).
• Interest Rate: The interest rate ceiling is set within the range of (15-20%).
• Spending limit: A maximum of ≤ 20,000 baht per person is set.
• Loan term: The repayment period is set at a maximum of ≤ 6 months.
• Advertising must not use advertisements that encourage or promote excessive debt-creating behavior.
• Providing information requires providing complete and accurate information before agreeing to apply for a loan or purchase goods.
• It is strictly prohibited to withdraw the BNPL credit line as cash.
• Minimum Value and Product Types: Minimum product values ​​and/or product types eligible for BNPL services may be specified.

For example, one company offers a loan (BNPL) with an interest rate of 25%. Another company then offers an e-wallet. If cash is withdrawn through the e-wallet, the other company adds a 10% fee, making it 35% in total. This money is then used to buy more BNPLs, with the difference between the upfront and later payments being made in a third installment.

"These issues create difficulties and confusion for consumers, and are related to illicit financing and online gambling. If the central bank doesn't intervene, all of this will have a broad impact on the economy."

The following are statistics on the value of loans and the number of BNPL accounts from 2564 to 2568 (estimated):

• In 2564, there were 0.62 million accounts with a loan value of 6,834 million baht.
• In 2565, there were 2.44 million accounts with a loan value of 11,905 million baht.
• In 2566, there were 3.41 million accounts with a loan value of 10,543 million baht.
• In 2567, there were 4.91 million accounts with a loan value of 17,980 million baht.
• By 2568 (estimated), the projected number of accounts is 6.30 million, with a loan value of 40,713 million baht.

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