In the Philippines’ fast-moving digital economy, credit has become just one click away. Buy Now, Pay Later (BNPL) apps promise convenience, dignity, and short-term relief. But for many Filipinos struggling with inflation and low wages, this promise is turning into a trap.
Under Republic Act 10870 (RA 10870), the government promotes inclusive financial systems and protects consumer rights in digital transactions. The law supports financial technology (FinTech) growth while ensuring that users are not abused by hidden fees, deceptive contracts, and aggressive collection practices.
Yet in reality, BNPL schemes are now being used by scammers and unethical lenders to exploit people who are financially desperate.
And the worst part?
These scams don’t look like scams anymore. They look like apps.
What Social Media and Online Forums Are Revealing
A growing number of complaints can be found on:
- Facebook groups for debt relief and OFWs
- Reddit-style forums and anonymous confession pages
- Comment sections of loan app ads
- Tech and finance blogs
Common patterns appear again and again:
✔️ Users approved instantly with no income verification
✔️ Borrowers receiving ₱1,500 but owing ₱3,000+
✔️ Terms hidden in tiny unreadable text
✔️ Access to contacts, photos, and messages
✔️ Threats sent to family members
✔️ Fake “legal” notices sent by bots
These apps are marketed as:
“Emergency help”
“Fast cash”
“No collateral”
“No judgment”
But once installed, they turn into:
Data-harvesting machines
Psychological pressure tools
Automated harassment systems
This directly violates the spirit of RA 10870, which aims to protect digital consumers — not make them victims of algorithmic debt traps.
Why BNPL Is Attractive to the Desperate
BNPL scams work because they target:
- Minimum-wage workers
- Students
- Single parents
- Laid-off employees
- Small vendors
- OFWs in emergencies
Unlike banks, these platforms:
- Require no face-to-face interaction
- Give instant approval
- Avoid long background checks
For someone hungry or short on rent, reading “Terms and Conditions” feels like a luxury.
That’s not ignorance — that’s digital desperation.
Where Technology Is Being Used the Wrong Way
Many of these apps use:
- Automated approval systems
- AI-driven debt scoring
- SMS and contact scraping
- Bots for collections
- Scripted threats
- Fake legal templates
This is not innovation.
This is weaponized software.
And here’s the uncomfortable truth:
These systems are built by developers.
Designed by UX teams.
Deployed by IT engineers.
Which means…
How Software Developers and IT Professionals Can Help
The IT industry is not just about building apps — it’s about building ethical systems.
Here’s how tech workers can make a difference:
1️⃣ Build Transparent Financial Systems
Design apps where:
- Interest and penalties are visible
- Real-time balance is clear
- Contracts are readable
- No hidden fees
#EthicalFinTech #TransparentCode
2️⃣ Use AI for Protection, Not Exploitation
Instead of using AI to pressure borrowers:
- Use fraud detection
- Identify scam patterns
- Flag abusive behavior
- Prevent predatory lending
#AIForGood #TechForPeople
3️⃣ Strengthen Data Privacy
Stop:
- Contact scraping
- Photo scanning
- Message harvesting
Implement:
- Zero-trust security
- Minimal data access
- Clear permission controls
#DataPrivacyPH #CyberSecurity
4️⃣ Build Complaint and Audit Systems
Apps should include:
- In-app dispute buttons
- Automated reporting to regulators
- Transaction history logs
- Collection activity records
#ConsumerProtection #DigitalRights
5️⃣ Help Government Enforce RA 10870
Developers can support:
- Regulatory monitoring tools
- App store detection bots
- Blacklist APIs
- Public warning dashboards
Technology can expose scammers faster than human paperwork ever could.
#RA10870 #GovTechPH
What Still Needs to Improve
Despite the law, gaps remain:
❌ Weak app regulation
❌ Lack of real-time monitoring
❌ Poor public awareness
❌ Limited digital literacy
❌ Slow takedown of abusive apps
RA 10870 is a shield —
but a shield is useless if it is not raised.
The Real Issue: Code Without Conscience
BNPL scams are not just financial crimes.
They are software failures with human consequences.
A badly designed loan app can:
- Destroy mental health
- Break families
- Push people into deeper poverty
This makes the IT industry morally involved — whether we like it or not.
The Future We Should Build
Imagine a system where:
✔️ Loans are fair
✔️ Fees are visible
✔️ Data is respected
✔️ Collections are humane
✔️ AI protects the poor
✔️ Technology serves dignity
That is what RA 10870 was meant for.
Final Thought
BNPL scams thrive where:
- Poverty meets code
- Urgency meets automation
- Desperation meets silence
But they collapse when:
- Developers speak
- Engineers design responsibly
- IT professionals choose ethics over profit
The future of finance in the Philippines will not be decided by laws alone.