More Malaysians are turning to “Buy Now, Pay Later” (BNPL) services to shop online and manage daily expenses, with Bank Negara Malaysia (BNM) reporting a BNPL transaction value of RM9.3 billion in the first half of 2025.
The number of BNPL accounts has also risen sharply to 6.5 million users, particularly among young consumers and frequent online shoppers.
However, BNM cautioned that BNPL debt is also growing. As of June 2025, RM3.8 billion in BNPL payments remain unsettled, with 3.2% classified as overdue—up from 2.9% last year. While still small relative to total household debt, the regulator emphasized the trend must be closely monitored to prevent a larger financial problem.
Analysts note BNPL’s popularity stems from zero-interest instalments, quick approval, and a smooth online checkout experience. Yet they warn that users could easily overspend without proper discipline.
The new Consumer Credit Commission is expected to introduce regulations soon to oversee BNPL platforms and protect consumers from excessive debt. BNM confirmed it will continue monitoring the sector to ensure it does not become a long-term debt trap, particularly for lower-income households.
