Buy Now, Pay Later (“BNPL”) Code of Conduct

BuyNow,PayLater(“BNPL”)CodeofConduct TableofContents 1.Preamble3 2.WhatistheBNPLCode?3 3.Safeguardstoaddresstheriskofcustomersgettingintofinancialdifficulties4 4.Ensurefairdealingandsafeguardsagainstprovidingmisleadinginformation5 4.1Cleardisclosures5 4.2Fairmarketing7 4.3Disputeresolutionprocess7 5.FinancialHardshipAssistance8 6.LatePaymentCollectionGuidelines8 7.ExternalInformationSharing9 8.DocumentRetentionPeriod9 9.Definitions9 1.Preamble Inrecentyears,therehasbeenariseintheuseofBuyNow,PayLater(“BNPL”)services,inparticular,thewidespreaduseofthisservicebyonlineandofflineretailers. Typically,BNPLischaracterisedbysplittingthecostofpurchasefromamerchant,forexamplearetailer,intoseveralequalamountstakenatregularintervals,usuallymonthly.Notwithstandingtheabove,BNPLcanalsocomeintheformofasingledeferredpaymentagreement,wherethefullamountistakenatasingleinterval,usuallymonthly. Today,BNPLisusedforthepurchaseofadiverserangeofproductsandservices,fromlow-valueconsumergoodstohigher-pricedairlinetickets.BNPLisfastgainingtraction,inparticular,amongstdigitalnatives,theunder-servedandtheunder-banked. SomefeaturescommonlyassociatedwithBNPLservicesinclude(butarenotlimitedto): (1)Cappedlatefees;and (2)Suspensionofaccountwhenfeesareoverdue. TheBNPLCodeofConductrecognizesthetransformativeuseoftheservice,inparticular,fortheunder-servedandtheunder-banked,andseekstopromoteindustrybestpractices,byenshriningsafeguardstomitigatetheriskofconsumerdetriment. TheBNPLCodeofConductisindustry-ledandsignifiestheindustry’scommitmenttoabidebytherulesstipulatedinthisdocumentandsetastandardlevelofintegrityandpracticetobefollowedbyallBNPLProviders. Asacustomeroramerchant,youarerecommendedtodealwithAccreditedBNPLProviders.BNPLProviderswillbesubjecttoanindustry-ledauditschemeandaccreditationprocess,anduponsuccessfulcompletionwillbeeligibletodisplaythetrustmarktosignifytocustomersthattheycomplywiththisCodeofConduct.YoumayviewthelistofaccreditedBNPLProvidershere. 2.WhatistheBNPLCode? UndertheguidanceoftheMonetaryAuthorityofSingapore(MAS),theSingaporeFinTechAssociation(SFA),togetherwithexistingBNPLserviceprovidersandotherindustryplayerswhohavefirmplanstoprovideBNPLservicesinSingapore,haveco-createdaBNPLCodeofConduct(“BNPLCode”)inrelationtodealingswithBNPLcustomers. InthisBNPLCode,thewords‘you’and‘your’refertoanindividualwhoisorwasacustomeror,whererelevant,anindividualwhoisafuturecustomerofaBNPLProvider.InthisCode,thewords‘we’,‘us’and‘our’aretobereadasreferringtoaBNPLProviderthatiscomplyingwiththeBNPLCode. TheBNPLCodesetsoutguidancefortheindustrytomitigaterisksofconsumerover-indebtedness,ensuringthatBNPLofferingswillhaveapositiveimpactonSingaporeanconsumers,aswellastocontinuetobenefittheecosystem.TheBNPLCodecrystallizesindustrybestpracticessuchas conductingcreditworthinessassessments,ensuringfairandethicalmarketingpractices,accommodatingforvoluntaryexemptions,andensuringtheprovisionofahardshiprepaymentplan,amongstothers. NewBNPLProvidersshouldseektoadoptandcomplywiththeBNPLCode,priortoofferingBNPLservicesinSingapore.Uponsuccessfulcompletionoftheauditandaccreditationprocess,newBNPLproviderswillbeeligibletodisplaythetrustmarkinasimilarmannertotheexistingBNPLProviders. 3.Safeguardstoaddresstheriskofcustomersgettingintofinancialdifficulties 3.1WewillonlyofferBNPLservicestocustomersaged18andover. 3.2Wewillcollectthefollowinginformationwhenonboardingnewcustomers: a.Name; b.Dateofbirth; c.NRIC/FINnumber; d.Email;and e.Mobilenumber. Theabovecollectedinformationwillbeusedtoverifytheidentityofthecustomeraspartofourduediligenceprocess,facilitatecreditinformationsharing,andtokeepourplatformssecure.Untilfurtherassessmentisconductedbyusassetoutbelowinparagraph3.3,youwillonlybepermittedtoaccumulatenomorethanSGD2,000inoutstandingpaymentsatanygiventime(the“BNPLlimit”)witheachofus. 3.3PriortograntingaBNPLlimitinexcessofSGD2,000toyou,wewill,forfurthercreditassessmentandverificationandrepaymentpurposes: a.Collectyourfollowinginformation: i.Address;and ii.Nationality. b.CollectanduseinformationaboutyourincometoensurethattheincreaseoftheBNPLlimitforyousatisfiesourinternalcreditriskmanagementprocesses,includingatleastoneofthefollowingindicativedatasources: i.NoticeofAssessmentormonthlyCPFcontributioninformationfromMyInfo; ii.Payslips/incometaxfilings;or iii.Alternativedataorinformationthatisasufficientlygoodproxyofyourincome(e.g.,ownershipofastandardcreditcardissuedinSingapore). 3.4WewillalsoconsideryourcreditworthinessasdeterminedthroughourcreditinformationsharingprocessesbeforegrantingyouanyincreaseintheBNPLlimitinexcessofSGD2,000. 3.5Wewillcapallfees,includinglatefeesandothercharges,andensurethatsuchfees,feecaps,andtherelatedfeestructuresarecommunicatedinamannerthatisclearandtransparenttoyou. 3.6Wewillnotcompoundtheinterestorfeeschargedtoyou. 3.7Werequirethatallyourincomeinformationremainsuptodate,andsomayrequestviaourTermsandConditionsthatyoukeepusupdatedintheeventofanysignificantincomechange.Wemayrecalibrateyourcreditlimits,ifnecessary,uponreceivingsuchinf