Malaysia’s BNPL balances reached RM4.9 billion at end-2025, with the Ministry of Finance saying exposure remains around 0.3 percent of household debt.

Bernama reported that MOF disclosed the figures in a written parliamentary reply on BNPL usage and oversight.

Overdue BNPL financing stood at RM160.2 million as at Dec 31, 2025, equivalent to 3.3 percent of total outstanding BNPL loans.

The ministry said the data indicates repayment pressures remain manageable.

BNPL adoption has expanded rapidly. User numbers rose to 7.5 million by end-2025, up from 2.6 million in 2023.

Industry analysis has suggested that more than 70 percent of BNPL users are from the B40 income group, increasing scrutiny over how short-term credit is being used among lower-income households.

Consumer Credit Act 2025 Takes Effect

MOF also confirmed that the Consumer Credit Act 2025 was gazetted on 31 December 2025 and came into force on 1 March 2026.

The legislation establishes the Consumer Credit Commission to oversee non-bank credit providers and strengthen consumer safeguards through clearer authorisation and conduct standards.

BNPL operators, leasing firms and factoring companies will be required to obtain licences from the commission, while credit service providers such as debt collection agencies must register.

These requirements will take effect from 1 June 2026, with a six-month transition period granted to industry players to comply.

The ministry said the framework is intended to promote transparency, responsible lending practices and stronger governance across the consumer credit industry.

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