In Indonesia, demand for BNPL has grown rapidly and total BNPL debt now stands at 30 trillion rupiah (US$1.8 billion), marking a 43% increase from the previous year. However, unpaid debts or non-performing finance (NPF) have also started to tick up. Data from Indonesia’s OJK also shows that more than a quarter of BNPL users are between 18 to 25 years of age, with their spending mostly on clothing, electronics, and personal care products. This is especially worrying as young Indonesians who rack up unpaid BNPL debt will find it harder to qualify for home loans. Indonesia’s Financial Information Service System (SLIK) has also included BNPL accounts into its purview, so missed BNPL payments can hurt the user’s credit score, making it more difficult to obtain financing in the future.  

Resultingly, OJK has implemented minimum age and income requirements for BNPL credit starting in January 2027, where only individuals aged 18 and above who earn at least 3 million rupiah (US$ 185) per month are permitted to register and use BNPL services. This restriction will be subject to further review as authorities may consider raising the minimum age and increasing the income threshold to promote greater financial responsibility.

In contrast, Singapore and Hong Kong have yet to introduce stricter laws governing BNPL. The MAS (Monetary Authority of Singapore) uses the BNPL Code of Conduct as a guideline as it was created jointly by the Singapore Fintech Association and the BNPL industry, with guidance from MAS. Meanwhile, Hong Kong introduced regulations to ensure customers are well-informed before engaging with BNPL products. This includes guidelines on how banks advertise BNPL products and requirements that fees and interest charges for BNPL products are clearly shown. In the above markets, which have more mature financial systems and ready access to traditional credit, BNPL growth has been more moderate. Perhaps this is why regulators have not yet seen the urgency to impose stricter BNPL regulations.

Nonetheless, regulators in other developing Southeast Asian markets such as Thailand and Vietnam may see a need for clearer regulations to protect consumers as BNPL growth continues to gain pace, driven by the rise of eCommerce marketplaces, social commerce platforms, and live streaming. Once again, regulators in these markets will need to strike a delicate balance between pursuing innovation in financial services and protecting consumers from potential financial pitfalls.