‘Buy now, pay later’ (BNPL) transactions in Malaysia rose to RM7.1 billion in the second half of 2024 (2H2024), up from RM4.9 billion in the first half, Bernama reported, citing Finance Minister II Datuk Seri Amir Hamzah Azizan.
As of December 2024, there were 5.1 million active BNPL users, with most aged 21 to 45 years and earning below RM5,000 per month. BNPL services were provided by 12 companies across the country.
Amir Hamzah acknowledged concerns over the sector’s impact on household debt but noted that BNPL loans remained at a manageable level.
As of December 2024, BNPL financing amounted to RM2.8 billion, accounting for 0.2% of total household debt.
Meanwhile, outstanding BNPL loans stood at RM82.6 million, representing 2.9% of total BNPL credit.
Speaking during a Dewan Negara session, the minister addressed a question from Senator Musoddak Ahmad regarding efforts to regulate BNPL and other credit providers.
To enhance consumer protection, the Ministry of Finance (MOF) introduced the Consumer Credit Bill in the Dewan Rakyat on 4 March.
According to Amir Hamzah, the proposed legislation aims to establish a regulatory framework for non-bank credit providers, ensuring compliance with ethical standards, transparency in fees, fair credit terms, and regular payment reminders for borrowers.
If enacted, the Consumer Credit Act will be overseen by the Consumer Credit Commission, a new regulatory body under the MOF, tasked with monitoring BNPL operators and other credit providers.
Featured image: Edited from Freepik
