File photo courtesy of Wikipedia

 

The Thai government's planning unit raises the alarm as the 'buy now, pay later' (BNPL) trend, initially popular in online shopping, spirals into daily essentials like food and fuel, pushing household debt to worrying levels.

 

Danucha Pichayanan, secretary-general of the National Economic and Social Development Council (NESDC), highlighted the expanded reach of BNPL schemes into restaurant meals and fuel purchases, flagging this as a potential crisis point. He stressed that such essentials should be paid upfront and warned that failure to curb this trend could further burden household finances.

 

He identified four key issues with online lending that fuel household debt: indiscriminate loan approvals without assessing existing debt, vague conditions lacking strict requirements, excessively high credit limits, and loans used beyond intended platforms, such as funding meals, travel, and entertainment.

 

In early 2025, Thailand's household debt was 16.3 trillion baht, with a slight dip in the debt-to-GDP ratio, now at 87.4%. While non-performing loans (NPLs) decreased to 1.19 trillion baht, marking an 8.78% share of total loans, auto loans and credit card debts saw a rise. Special mention loans (SMs)—short-term overdue debts — slightly increased, indicating ongoing financial stress despite reduced new lending.

 

Employment conditions are also shifting. A private sector survey revealed that 25% of Thai firms plan to downsize or restructure their workforce, moving towards flexible employment models. Permanent part-time roles have surged from 6% to 42%, and contractual positions from 4% to 28% between 2022 and 2024, as companies grapple with 2025's economic uncertainties.

 

The second quarter of 2025 saw a minor rise in employment, with a workforce of 39.5 million, and the unemployment rate marginally improving to 0.91%. However, the NESDC's report on Thai entrepreneurs highlights concerns about foreign competition, especially in hospitality, alleging aggressive tactics by foreign investors and resultant business vulnerabilities, reported the Bangkok Post.

 

The growing BNPL trend and evolving employment landscape present significant economic challenges for Thailand. The NESDC's insights underline the pressing need for strategic measures to manage household debt and adapt to shifting employment dynamics.

 

  Adapted by ASEAN Now from Bangkok Post 2025-08-26

 

22 minutes ago, webfact said:

The Thai government's planning unit raises the alarm as the 'buy now, pay later' (BNPL)

 

And at the same time they are dreaming on a cashless society, idiots.

I buy now pay never 

Its a recipe for disaster alot of countries have tried this and living above your means and most thais unfortunatly arent very frugal

2 hours ago, Celsius said:

I buy now pay never 

How would your wife feel about that comment

1 hour ago, ozz1 said:

Its a recipe for disaster alot of countries have tried this and living above your means and most thais unfortunatly arent very frugal

 

Nor will they ever "pay later".

3 hours ago, Celsius said:

I buy now pay never 

 

Well, if you die before you have to pay it all back, do you win? I think this is the mindset of most of these people living this way.

1 hour ago, angryguy said:

How would your wife feel about that comment

Probably does the same.

Buy Now Pay Later - isn't that the idea of credit cards??

 Will this payment option be available for the hire of bar ladies? 

1 hour ago, LukKrueng said:

Buy Now Pay Later - isn't that the idea of credit cards??

Most of these buy now pay later options are a little different.

 

There is a set payment schedule over a short period of time and if you make the payments on time there is no interest.  If you miss a payment or are late the interest rates a sky high.

 

Many don’t have credit checks or limits.  In the US they are not included on credit reports.

3 minutes ago, statman78 said:

Most of these buy now pay later options are a little different.

 

There is a set payment schedule over a short period of time and if you make the payments on time there is no interest.  If you miss a payment or are late the interest rates a sky high.

 

Many don’t have credit checks or limits.  In the US they are not included on credit reports.

 

Though most of the people taking these loans would probably already have a bad credit report.

1 hour ago, LukKrueng said:

Buy Now Pay Later - isn't that the idea of credit cards??

 

Yeah but they have now moved it like eveerything else to the digital world.  Watch stores and busineses start whining because they are going under waiting for people to pay.

1 hour ago, Jack Hammer said:

 Will this payment option be available for the hire of bar ladies? 

it is in most countries [ they carry a small machine with them ]

2 hours ago, Jack Hammer said:

 Will this payment option be available for the hire of bar ladies? 

Probably won't be long before bar girls start having QR codes tatooed on thier body somewhere for easy payment.

A little late in the season - if you ask me. At the same time the goons running this circus talks of cashless society for taxation advantages. Well, if there is nothing there, there is nothing to be collected either. 

Wondering what kind of excellent weed those geeks smoke - the mind boggles! 

4 hours ago, Jack Hammer said:

 Will this payment option be available for the hire of bar ladies? 

Are you proposing 'Shoot and Scoot'?

12 hours ago, webfact said:

The second quarter of 2025 saw a minor rise in employment, with a workforce of 39.5 million, and the unemployment rate marginally improving to 0.91%

That seems low

This 'BNPL' is not a recent trend.  For the more than 10 years that I lived full-time in Thailand, all the adult Thais that I knew were living beyond their financial means, using many different types of extended credit, with increasing debts that they could never hope to pay.

3 hours ago, Encore said:

This 'BNPL' is not a recent trend.  For the more than 10 years that I lived full-time in Thailand, all the adult Thais that I knew were living beyond their financial means, using many different types of extended credit, with increasing debts that they could never hope to pay.

 

I noticed the same thing, I don't think I have met any Thai's not living beyond their means. I know it's bad in the USA too, but here is it's on a whole nother level. I'd die of a heart attack if I had to live with the debt levels these people live with.

In the U.K. in the sixties people would buy stuff on credit or 'tick' as it was called colloquially, from the 'tallyman' Either that or they would pawn stuff or borrow from a registered money lender. 

 

With the advent of hire purchase and credit cards this practice died out. 

 

These days it's buy now and realize you can't  pay later.  

Crédit cards are great when used properly.  When spending a lot like flights , hotels etc , you just calculate when they will be cashed and buy accordingly.

I have an amount that practically never changes as my pension covers far more than what I spend. Means I don’t have to use my investments. 

The problem with most Thais is they cannot control their spending. Like children.

The amount of borrowing and loans here is insane. Seems like everyone is borrowing from Somchai to pay back Nong to pay back Nam to pay back Moo to pay back Nippaporn, etc. Borrowing from Peter to pay Paul is on overdrive here.