Deep Dive Into CBQ BNPL Regulations

Buy-Now-Pay-Later ("BNPL") services have surged in popularity but face issues like unfair lending practises, disproportionate fees and poor complaint-handling processes. Recognizing the need to regulate this burgeoning industry, the Qatar Central Bank ("QCB") has introduced MENA region's first BNPL-specific regulatory framework (the "BNPL Regulations"). Effective from August 6th, 2023, the BNPL Regulations aims to safeguard customer rights from unfair lending practises.

Definition of BNPL Products/Services

A "BNPL Product or Service" has been defined as a short-term instalment-based credit product extended to customers (offline or online), enabling them to purchase goods or services and repay the associated transaction amount over a period of time ("BNPL Product/Service").