THE number of 'Buy Now, Pay Later' (BNPL) account holders increased to eight million in the first quarter of 2026.
According to the Ministry of Finance (MoF), the total outstanding BNPL balance reached RM5.3 billion during the same period, while the total overdue amount is RM181.0 million, or 3.4 per cent of the total outstanding BNPL balance.
"Overall, BNPL debt remains low, which is around 0.3 percent of the total household debt in the country as of the end of 2025," according to a written answer posted on the Parliament website, yesterday.
MoF responded to a question from Bukit Bendera Member of Parliament, Syerleena Abdul Rashid, who asked the ministry to state the steps taken by the Consumer Credit Commission (SKP) to protect BNPL users following the BNPL transactions reaching RM9.3 billion in the first half of 2025.
Of this, 40 percent involved users aged 30 and below.
MoF informed that BNPL providers are now required to obtain a license from the SKP as a measure to ensure that only providers that meet regulatory, governance and consumer protection requirements are allowed to operate.
“The SKP has issued Licensing and Registration Standards, as well as Standards of Conduct that set minimum standards that must be adhered to by all BNPL providers.
“The license application period opened on June 1 and existing BNPL providers have been given until November 30 to submit their applications,” said MoF.
To protect consumers from taking out financing beyond their means, the SKP Standards of Conduct require BNPL providers to conduct a creditworthiness assessment and debt capacity assessment before any financing is approved.
BNPL providers are also prohibited from providing or extending credit facilities to consumers who may face difficulty in meeting their repayment obligations. – July 16, 2026
