Buy-Now-Pay-Later Framework Finally Comes into Force: Banks and Financing Companies Required to Update Their Existing Services by June 2026

In an effort to ensure that the organization of the Buy-Now-Pay-Later (“BNPL”) business model is in line with prudential principles and principles of good governance, and also supports healthy and sustainable growth within the financial services industry, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has decided to issue Regulation No. 32 of 2025 on the Organization of Buy-Now-Pay-Later Services (“Regulation 32/2025”), which has been in force since 15 December 2025.[1]