"Buy now, pay later" platform emerges

The "Buy Now, Pay Later" electronic consumption model (Buy Now, Pay Later, BNPL) has become popular in Asia in recent years and is very popular among the younger generation. In Hong Kong, virtual banks and enterprises have also launched similar platforms, which operate like credit card instalments. No interest accrues and no credit report reference is required for the payment.

Some members of the Legislative Council are concerned that the trend tends to encourage young people to overspend and cause them to fall into debt crisis.

In response to a question by Legislative Council member Liao Cheung Kong today (1st), Secretary for Financial Services and the Treasury Xu Zhengyu said that the government is paying attention to the "buy now, pay later" platform, and the HKMA will formulate guidelines in the second half of the year.

Xu Zhengyu pointed out that with the development of technology, a lot of innovative payment forms have been derived. "Buy now, pay later" is one of them. The general practice is to cooperate with platform merchants to pay and checkout in the app. For channels such as credit cards, the repayment period will be relatively short, and there will be no additional charges for on-time payment. Overdue repayment depends on the nature.

Xu Zhengyu: BNPL is in the development stage and accounts for 2% of the overall consumption

Xu Zhengyu pointed out that the relevant payment method is still in the development stage in Hong Kong, and the data shows that the consumption amount using this platform only accounts for 2% of the total, but it does not mean that the government is ignorant.

However, he emphasized that the existing measures to protect consumers and promote prudent lending also apply to "buy now, pay later" services. The authorities have recently discussed with the Consumer Council, hoping to enhance consumers' understanding of "buy now, pay later". and protection.

Xu Zhengyu pointed out that with the increase in the number of citizens using these platforms, the HKMA will strengthen its protection work, consult the banking industry in the next few months, and formulate guidelines related to supervision in the second half of the year.

He acknowledged that the business of such platforms would not necessarily be considered "money lending" and therefore not necessarily regulated by the Money Lenders Ordinance.

In this regard, the United Kingdom has just completed the consultation, while Singapore has adopted industry-specific regulations, and different places are "touching the road".

Eftpay's installed capacity has increased by 4 times. It has been added to buy now, pay later. It is planned to introduce a new era of overseas e-wallet online shopping.

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