Malaysia strengthens regulation of buy now, pay later
Pinkman 15 Jul 2025 12:29ENCopy link & title
In recent years, Malaysia has strengthened supervision of the "buy now, pay later" (BNPL) model to address the financial risks brought about by excessive consumer borrowing and rising household debt.
With the popularity of platforms such as Shopee PayLater, Grab PayLater and Atome, BNPL has expanded rapidly among young people, covering not only the retail sector but also industries such as medical care, education and tourism.
By the end of 2024, there will be more than 5 million consumers using BNPL services, pushing Malaysia's household debt to 1.6 trillion ringgit (about US$378 billion), accounting for 84.2% of GDP.
Although BNPL is popular for its convenience and interest-free installments, its potential risks cannot be ignored. Many users fall into financial difficulties due to the lack of repayment ability assessment, and overdue payments will also affect credit records and even lead to bankruptcy.
Without effective supervision, BNPL may evolve into a systemic financial risk.
With the popularity of platforms such as Shopee PayLater, Grab PayLater and Atome, BNPL has expanded rapidly among young people, covering not only the retail sector but also industries such as medical care, education and tourism.
By the end of 2024, there will be more than 5 million consumers using BNPL services, pushing Malaysia's household debt to 1.6 trillion ringgit (about US$378 billion), accounting for 84.2% of GDP.
Although BNPL is popular for its convenience and interest-free installments, its potential risks cannot be ignored. Many users fall into financial difficulties due to the lack of repayment ability assessment, and overdue payments will also affect credit records and even lead to bankruptcy.
Without effective supervision, BNPL may evolve into a systemic financial risk.
