BANGKOK – In Thailand’s busy online market, a quiet shift is taking place in the way people handle their finances. Nano finance and Buy Now Pay Later (BNPL) options are changing shoppers’ habits across the country.
From electronics on Shopee and Lazada to everyday purchases like food, these services have made it easier for many to buy what they want, but they also add to household debt. For some, this extra debt leads to serious money problems and, in some cases, even bankruptcy.
Nano finance and buy now, pay later have grown quickly in popularity. Thailand’s booming online shopping scene and a push for easier payment choices help drive this trend. Nano finance gives small loans, usually to people who have trouble getting credit elsewhere, with limits up to 100,000 baht and interest rates as high as 33% each year.
Digital personal loans, which often connect with buy now, pay later offers, go up to 20,000 baht at capped rates of 25% yearly, based on Bank of Thailand rules. These loans suit Thailand’s online-first economy, where businesses like Shopee and Lazada hold a strong presence.
Recent figures from the National Credit Bureau (NCB) show a big jump in nano-finance lending during the second quarter of 2025. Much of this increase is linked to Shopee joining as an NCB member. NCB data reveals nano finance loans went up 17.1% from the previous quarter and 44.1% from the previous year, with bad loans climbing to 12.8 billion baht.
As Buy Now Pay Later becomes more common on online shopping sites, Lazada is expected to join the bureau too, giving even better insight into lending habits. Ms Luxamon of the NCB points out that making credit data more widely available could help improve how lenders use data across big e-commerce platforms.
Buy Now Pay Later Simple Appeal, Hidden Dangers
The main draw of Buy Now Pay Later is how easy it makes shopping. Shoppers can spread payments across weeks or months, sometimes with little or no interest if plans are short. Many, especially younger buyers or those without traditional banking access, find this a helpful way to afford not just gadgets but daily needs.
Worryingly, more Thais now split payments on essentials like groceries and restaurant bills using Buy Now Pay Later apps. A former senior energy official, who wished to stay anonymous, said, “People need loans like these when their budgets are tight.” Though these products bring flexibility, they hide certain risks.
Using Buy Now Pay Later and instalment payments isn’t only for costly items anymore. NIPA, a digital market research group, found that 40% of online social-commerce sales in 2023 used instalment plans. Popular categories include fashion, electronics, and other lifestyle products.
Shopee and Lazada both offer BNPL features to attract more sales, especially during big promotions. Livestream sales and limited-time deals make it even more tempting for younger shoppers, such as Gen Z and Millennials, who want the latest items without saving up.
BNPL’s reach now covers food, too. Foodpanda and GrabPay both give customers the chance to split their takeaway bills into smaller payments. This shift shows the financial strain on many households.
Economic expert Sompop Manarungsan says businesses turn to BNPL to hold onto shoppers when overall spending slows, leading even basic needs to be bought in instalments. While paying just 60 baht per instalment may seem harmless, the total debt can quickly add up.
Downside: Debt and the Risk of Bankruptcy
While nano finance and BNPL open doors for those left out of traditional banking, they also bring new dangers. Household debt in Thailand has reached worrying levels, in part due to these easy credit products.
Nattaporn Triratanasirikul, a senior leader at Kasikorn Research Center, explains that Buy Now Pay Later loans rarely appear in formal credit checks. Many families, she says, struggle to earn more money, and without better incomes, BNPL often pushes people to buy more than they should.
Low instalment amounts are especially risky. Ms Nattaporn notes, “When people see payment plans as low as 60 baht, they think it barely affects their budget, so they buy extras they could skip. Over time, these small loans build up fast.”
This can turn into a cycle of borrowing that’s difficult to break. The Consumer Financial Protection Bureau reported that, worldwide, 63% of those using BNPL in 2022 owed money to several providers at once, and 20% signed up for new loans each month. This global trend has taken hold in Thailand, too.
As a result, bad loans tied to nano finance are rising. The NCB reports non-performing loans at 12.8 billion baht by mid-2025. When people miss payments, extra fees and lower credit scores make things worse. With some borrowers unable to recover, personal bankruptcies are increasing.
Kanjana Chockpisansin from K-Research warns that heavy use of BNPL makes it harder for households to pay back what they owe, increasing stress around debt levels. Many buy now, pay later companies fall outside strict banking rules, which raises the risk that borrowers may fall victim to unfair lending.
The Need for Rules and Smarter Money Choices
Regulators in Thailand are worried. The Bank of Thailand urges lenders to tighten checks on borrowers and promote safer lending. Most banks now treat new loans with care, but some Buy Now Pay Later providers avoid central bank rules by using different licences, leaving gaps in oversight.
There’s also concern that unlicensed lenders might misuse Buy Now Pay Later, driving people further into debt.
For people using these services, the advice is to use Buy Now Pay Later thoughtfully, not for non-essential items. Simple tools, like budgeting apps, can help keep payments under control.
Ms Nattaporn stresses the importance of staying aware of how small payments chip away at budgets and add to overall debt. Regulators face a tough job. They need to offer people more ways to borrow while protecting them from the risks tied to easy credit.
The spread of nano finance and Buy Now Pay Later in Thailand mirrors the move to faster, easier online credit. Companies like Shopee and Lazada have made digital shopping more attractive and convenient.
But with the ease of buying comes a real risk: rising household debt and the shadow of bankruptcy. Thais are urged to shop wisely and watch for warning signs. The louder the call for quick purchases, the more important it is to think about the real price paid over time.
