Limited access to formal credit has driven many Malaysians to rely on informal lending methods to meet essential needs, a recent survey by SPayLater has revealed.

SPayLater is a Buy Now, Pay Later payment option available on the Shopee e-commerce platform.

The “Fikir Sekarang, Bayar Kemudian” survey, which gathered responses from over 40,000 users across the country, found that 63% of respondents who previously turned to sources like pawn shops, unlicensed lenders, or borrowing from family and friends no longer rely on such avenues after using SPayLater’s BNPL service.

The findings highlight the ongoing gap in credit access, with 55% of users saying they still lack access to credit outside of BNPL services.

Despite Malaysia’s growing digital finance ecosystem, 18% of users surveyed either do not use or cannot access traditional banking services, while 12% feel underserved by banks.

A majority—59%—said access to credit services is critical for spending on daily necessities.

Many respondents cited using SPayLater during financial emergencies, including expenses such as baby formula, medical needs, home or vehicle repairs, and insurance renewals.

The data also points to users relying on the service for cashflow management.

Over half use it to manage monthly budgets, 46% use it to bridge income gaps between paychecks, and 32% turn to it for unexpected expenses.

A smaller portion—10%—reported using it to support their small businesses.

Most users appear to treat SPayLater repayments as part of their regular budgeting, with 93% including it in their monthly planning and viewing it similarly to monthly utility bills.

Nearly 90% said the service helped them manage spending more effectively, and 95% believe it has improved how they handle debt.

These habits are reflected in a broader trend of improved repayment behaviour.

National data from the Consumer Credit Oversight Board shows BNPL delinquencies declined from 5.3% in 2023 to 2.6% in 2024.

While 42% of respondents said using the service gave them more control over their finances, 2% admitted to feeling anxious about relying on short-term credit.

Many users also expressed a desire for broader SPayLater availability, especially with essential service providers such as healthcare, grocery, and household merchants.

The survey forms part of SPayLater’s ongoing campaign to promote responsible BNPL use and encourage better financial decision-making.

Featured image: Edited by Malaysia, based on image by fadfebrian via Freepik