The Buy Now, Pay Later (BNPL) service certainly offers convenience to consumers as it allows purchases to be made immediately without having to pay in full at the time of transaction.
However, this convenience comes with a responsibility, which is that if not managed properly, it can trap consumers in increasing debt problems.
Latest data shows that BNPL accounts increased to 8 million in the first quarter of 2026 with an outstanding debt of RM5.3 billion. Of this amount, RM181 million or 3.4% is unpaid debt.
Although BNPL debt is only around 0.3% of the country's household debt as of the end of 2025, this increasing trend is seen as an early warning of financial risks if consumers continue to spend without control.
Therefore, BNPL should be seen not just as a purchasing convenience but a form of financial commitment that requires discipline and careful management.
This is a figure shared by the Ministry of Finance (MoF) which is seen as an early warning of potential financial risks. At the same time, the MoF also stressed that all BNPL providers are required to obtain a license from the Consumer Credit Commission (SKP).
To that end, the SKP has issued Licensing and Registration Standards and Standards of Conduct which set minimum requirements to ensure that BNPL providers operate under strict regulation.
Among the main conditions set is the need to conduct a creditworthiness assessment before approving any financing. In addition, BNPL providers are also prohibited from extending credit facilities to consumers who are identified as being at risk of failing to meet their repayment obligations.
