SG fintech group hands out accreditations to 4 players under new code

Photo credit: Singapore Fintech Association

After implementing a buy now, pay later code of conduct (BNPL code), The Singapore Fintech Association (SFA) and the BNPL Working Group handed out TrustMark accreditations to four service providers: Abnk, Atome, Grab, and SeaMoney.

The accreditation signifies the companies’ commitment to meeting the guidelines outlined in the BNPL code, according to a statement from SFA.

The SFA and the BNPL Working Group – which consists of players like Atome, Grab Financial Group, and ShopBack – have been working on the code since 2022. With the initiative, they aim to protect customers from financial issues like overindebtedness.

Under the code, accredited players will prohibit customers from accumulating over S$2,000 (US$1,470) in outstanding payments, unless they apply for an additional assessment. The financial institutions are also required to offer financial hardship assistance to customers in need and have a cap in all fees, including late fees, among other best practices.

The SFA said the accreditation was given to the four players after an independent assement by Price Waterhouse Coopers and a following evaluation by the SFA.

“Monetary Authority of Singapore (MAS) will continue to work with the industry to ensure that the BNPL code of conduct remains effective in upholding users’ interests,” said Loo Siew Yee, assistant managing director at MAS.

The BNPL code comes amid a rocky past year for the region’s deferred payments industry. Singapore-based Pace filed to shutter its business in August 2023 and ShopBack – which is in the BNPL Working Group – discontinued its PayLater biz.

Meanwhile, the TikTok Shop-Tokopedia tie-up announced its planned entry to the BNPL sector, which came just months after they finalized their partnership.

See also: ‘Buy now, pay later’ is not dead

Currency converted from ether to US dollar: US$1 = S$1.36.