Be it ShopeePay Later, Atome, or Grab PayLater; an observing eye could notice that Buy Now, Pay Later (“BNPL”) schemes have steadily gained traction among the younger generation. BNPL schemes provide a form of escapism and a second bite at the cherry for many young people seeking to sustain a particular lifestyle despite financial constraints.
Recently, BNPL schemes have even garnered legislative attention through the passing of the Consumer Credit Bill 2025. During the tabling of the Bill, Deputy Finance Minister Lim Hui Ying revealed that BNPL transaction values had surged by more than 30%, increasing from RM7.1 billion in the second half of 2024 to RM9.3 billion in the first half of 2025.
This begs the question: what exactly lures consumers into dabbling in BNPL schemes? Well, at the outset, BNPL schemes are characterized by their flexibility, enabling consumers to purchase products or services through instalments over a period of time. BNPL schemes provide breathing room, especially for young adults who are just beginning their careers, by enabling them to make substantial purchases or convert large expenses into smaller and low-interest monthly instalments. Undeniably, such flexibility offers a financial cushion, particularly during times of necessity or unexpected hardship.
Nonetheless, this comes with a catch. Unlike its precursor, that is Easy Payment Plans (“EPP”), BNPL schemes generally operate on less stringent financial screening. The low threshold may pave the way encourage impulsive spending and excessive consumption. To contextualize, individuals with weak financial standing may still gain access to BNPL facilities despite lacking the actual ability to repay their debts.
Usually to own a credit card, consumer needs to fulfill certain criteria with regards to income as well as financial commitment. Now for BNPL, such criteria plays no importance. Consumer can buy items from the service provider without any form of restriction. Our government needs to look into this matter thoughtfully.
In some instances, outstanding BNPL payments may even affect a consumer’s creditworthiness when reported to agencies such as CTOS. This may subsequently hinder the individual’s ability to obtain essential financing in the future, including loans for the purchase of significant assets such as motor vehicles or immovable property.
As such, it is behooved upon BNPL platforms to place greater emphasis on transparency and consumer rights. Ideally, consumers should be clearly informed about interest charges, late payment penalties, repayment obligations, as well as the customer service channels available for any enquiries or complaints. Relatedly, BNPL platforms should also impose stricter age restrictions and eligibility requirements to prevent teenagers and financially unstable individuals from misusing such facilities and falling into unnecessary debt.
In a nutshell, caution and financial discipline must be exercised when utilizing such facilities to ensure that they serve as a form of convenience rather than evolving into a debt trap. A famous Malay proverb goes, “makin besar periuk, makin besar keraknya,” which roughly means “the bigger the income, the bigger the spending.” BNPL schemes have arguably accelerated unhealthy spending habits by making excessive consumption appear more convenient and accessible. Nevertheless, with the right discipline and financial mindset in place, BNPL can still provide financial breathing room for young people seeking to meet their financial needs during times of hardship.
Jeffrey Ling Li Jie
National Consumer Complaints Centre (NCCC)