Malaysian Youth - RM5.4 Billion BNPL

Malaysians aged 30 and below made RM5.4 billion in BNPL purchases across 65.9 million transactions, the Finance Ministry told Parliament. Young consumers accounted for 37.9% of Malaysia’s 173.9 million BNPL transactions and 36.7% of the RM14.7 billion total value. This is broadly consistent with earlier figures showing that young users made up about 40% of BNPL transactions in 2025. 

Young consumers hold RM2.4 billion in outstanding BNPL debt. As of 30 June, consumers aged 30 and below had RM2.4 billion in outstanding BNPL financing, of which RM96.8 million, or 4%, was unpaid.

The Consumer Credit Commission requires providers to assess borrowers’ creditworthiness and repayment capacity before granting credit. These checks must consider existing bank and non-bank debt alongside new credit applications. 

The ministry warned that using multiple BNPL facilities simultaneously could increase repayment burdens and affect consumers’ financial positions. BNPL falls under the Consumer Credit Act 2025, which took effect on 1 March 2026. Existing providers must apply for a license by November 2026.

No automatic suspension of collections during disputes

The ministry said the law does not require BNPL providers to suspend payment collections or late fees while investigating disputed unauthorized transactions. However, providers must resolve complaints fairly, transparently and promptly.

Regulatory standards also require identity verification and a “kill switch” allowing consumers to freeze accounts if they suspect fraud or identity theft. Consumers are not liable for losses from unauthorized transactions caused by providers’ system failures or security lapses.