A promotional sign for Atome, a buy now pay later (BNPL) app, at the entrance to a Zara store in Singapore. Photographer: Wei Leng Tay/Bloomberg
KUALA LUMPUR: The credit exposure, or total outstanding balance, of the Buy Now Pay Later (BNPL) industry stood at RM1.42 billion as of the end of the first quarter of 2024 (1Q 2024), an increase of 34 per cent from the end of 2023.
BNPL accounted for 0.07 per cent of the total household debt as of the end of 2023.
"3.8 per cent of active BNPL account holders missed their payments and recorded as overdue as of the end of 1Q 2024 compared to 5.8 per cent at the end of 1Q 2023,” the Consumer Credit Oversight Board (CCOB) Task Force said in its report today.
The report also revealed that a majority of 3.7 million BNPL account holders are working adults, aged between 21 and 45 years old.
More than 700,000 merchants accept BNPL, with a strong presence in three sectors, namely food and restaurants, retail and transportation.
"Most merchants operate online but the proportion of physical or in-store merchants has increased, reaching 12 per cent in 1Q 2024,” it added. - Bernama
