Malaysia recorded 102.6 million Buy Now Pay Later (BNPL) transactions worth RM9.3 billion in the first half of 2025, marking a 31% increase from RM7.1 billion in the second half of 2024. Youth aged 30 and below accounted for 40% of these transactions, raising concerns about rising indebtedness in this demographic.
As of June 30 2025, the outstanding BNPL balance stood at RM3.8 billion, representing 0.2% of total household debt. While overdue BNPL amounts remained contained at RM121.8 million (3.2% of total BNPL balance), there are 6.5 million active BNPL account holders, of whom 168,967 (2.6%) have overdue payments.
A 2024 study by the Consumer Credit Oversight Board Task Force (CCOBTF) found that 88% of BNPL users paid on time, with less than 0.5% unable to repay.
To address potential risks, the upcoming Consumer Credit Act 2025 (AKP) will require BNPL providers to conduct affordability assessments, ensure transparent and fair terms, impose reasonable charges, and maintain ethical debt collection practices.
The government has also stressed the importance of financial literacy to help Malaysians understand the risks of overusing BNPL schemes and avoid falling into debt traps.
