THE number of Buy Now Pay Later (BNPL) transactions in Malaysia surged to 102.6 million, amounting to RM9.3 billion in the first half of 2025—a 31 percent increase compared to RM7.1 billion recorded in the second half of 2024.
Answering a parliamentary question from Mohd Syahir Che Sulaiman (Bachok), Deputy Finance Minister Lim Hui Ying said 40 percent of these transactions involved consumers aged 30 and below, prompting fresh scrutiny over the growing financial exposure of young Malaysians.
“As of 30 June 2025, the outstanding BNPL balance stood at RM3.8 billion, comprising just 0.2 percent of the nation’s total household debt. However, overdue payments remain contained at RM121.8 million, or 3.2 percent of the total outstanding BNPL credit,” she said.
The number of active BNPL account holders has also grown significantly to 6.5 million, with 2.6 percent—or 168,967 users—facing overdue balances.
Citing findings from a 2024 study by the Consumer Credit Oversight Board Task Force (CCOBTF), the minister noted that most BNPL users demonstrated good financial discipline.
“About 88 percent made all payments on time, 12 percent made late but full payments, and less than 0.5 percent failed to pay in full,” she stated.
To mitigate risks and protect consumers—especially younger ones—the government has introduced the Consumer Credit Act 2025, under which BNPL providers will be required to adhere to a framework of responsible lending.
“Under this law, BNPL companies must conduct affordability assessments before offering financing, ensure fair and transparent transaction terms, implement reasonable fees, and follow ethical debt collection practices,” she explained.
He added that affordability assessments are critical to ensure borrowers—particularly the youth—are not overburdened and do not fall into debt traps.
The minister also highlighted the importance of financial literacy, noting that the government is stepping up efforts to educate the public on the risks associated with excessive use of BNPL services.
“This is vital to empower citizens to manage their finances wisely and avoid uncontrolled debt accumulation,” Lim added. - August 7, 2025
