Thailand banks Krungthai and Kasikorn tighten rules on buy now, pay later

Krungthai Bank and Kasikornbank scrutinised their buy now, pay later services and adjusted business strategies as they aligned operations with stricter regulatory oversight of BNPL products in Thailand, the Bangkok Post reported.

BANK ACTIONS AND RATIONALE

KBank chief executive Kattiya Indaravijaya said the bank had discontinued its own BNPL service in 2022 over asset-quality concerns, but a KBank subsidiary, Kasikorn Investure, holds a stake of more than 50% in Atome Thailand, a digital lending platform offering BNPL, and that business's strategy can be adjusted to meet the central bank's rules. Krungthai president Payong Srivanich said the bank was offering more cautious BNPL services, focusing on borrowers' needs, repayment capacity and credit quality, in line with the Bank of Thailand's push for responsible lending.

MARKET CONTEXT AND REGULATORY PRESSURES

In Thailand, the banks' moves came as the Bank of Thailand, under governor Vitai Ratanakorn, drafted BNPL rules, including minimum user ages, eligible product categories and interest-rate caps, which are expected to take effect by the end of 2026. Vitai has said the central bank will supervise all companies that provide credit for purchases on online platforms, regardless of the interest-rate level, and will require users to opt in to credit limits rather than have them granted automatically.

Sources: Bangkok Post; Thai Enquirer; Nation Thailand; Kasikornbank