Lower-income Malaysians make up 70% of BNPL users as financing hits RM6.6b

LOWER-income earners make up about 70 per cent of active Buy Now, Pay Later (BNPL) users in Malaysia, while young people account for nearly 40 per cent of usage, highlighting the importance of safeguards against excessive borrowing as the financing scheme expands.

The Finance Ministry (MoF) said active BNPL account holders rose 22.7 per cent to 9.2 million as at June 30, with outstanding financing totalling RM6.6 billion.

BNPL transactions increased 23.9 per cent to 173.9 million in the first half of 2026, from 140.4 million in the second half of 2025, while their total value climbed 22.5 per cent to RM14.7 billion from RM12 billion.

Despite the rapid growth, unpaid BNPL amounts stood at RM220.4 million, or 3.3 per cent of total outstanding financing, which the ministry described as manageable.

The figures were provided in a written parliamentary reply to Mohd Syahir Che Sulaiman (PN-Bachok), who sought an update on BNPL usage and arrears, as well as measures to curb excessive indebtedness, particularly among young and lower-income consumers.

To protect consumers from taking on debt beyond their repayment capacity, the Consumer Credit Commission (SKP) requires BNPL providers to assess applicants’ creditworthiness and ability to repay before approving financing.

Providers are also prohibited from granting or increasing credit facilities for consumers likely to struggle to meet their repayment obligations, the ministry said.

The SKP also requires providers to disclose financing terms, fees and charges clearly, and ensure that marketing and promotional activities do not mislead consumers.

The ministry said the commission was working with the Credit Counselling and Debt Management Agency (AKPK) and the Financial Education Network (FEN) to strengthen financial literacy through coordinated consumer education initiatives.

The whole-of-government approach aims to improve consumer awareness and encourage responsible financial decisions while avoiding duplication of efforts among agencies, it added. - October 20, 2026