More than 70 percent of active buy now, pay later (BNPL) users in Malaysia were from the lower-income B40 group.

The finding, drawn from a Consumer Credit Oversight Board Task Force study and cited in parliamentary disclosures reported by Bernama, comes as BNPL lending continued to expand last year.

Outstanding BNPL loans reached RM4.9 billion as at Dec 31, 2025, accounting for about 0.3 percent of Malaysia’s total household debt.

Overdue BNPL balances stood at RM160.2 million, or 3.3 percent of total BNPL lending.

Usage increased sharply over the year, with BNPL platforms processing 243 million transactions in 2025 valued at RM21.3 billion.

This compared with 146 million transactions worth RM12 billion in 2024, representing growth of 66 percent in transaction volume and 78 percent in value.

This mirrors trends flagged in the Malaysia Fintech Report 2025, which estimated about 6.5 million BNPL users in Malaysia, with most relying on three providers.

The data was shared during a Special Chamber session in the Dewan Rakyat as the Ministry of Finance responded to questions on how it evaluates the effectiveness of regulations governing digital credit, including BNPL schemes and e-wallet credit.

Youth accounted for around 40 percent of BNPL transactions, with most usage linked to routine spending such as food, groceries, transport and services. The average transaction value was RM91.

Featured image: Edited by Fintech News Malaysia, based on image by rawintanpin via Freepik