KUALA LUMPUR: Malaysian youths aged 30 and below recorded RM5.4bil in Buy Now, Pay Later (BNPL) purchases across 65.9 million transactions, the Finance Ministry revealed.
This accounts for 37.9% of the nation’s 173.9 million total BNPL transactions and 36.7% of the overall RM14.7bil transaction value recorded nationwide.
As of June 30, the outstanding BNPL financing balance among young consumers reached RM2.4bil, with RM96.8mil, or 4%, currently unpaid.
To protect young consumers from falling into debt traps, the ministry said the Consumer Credit Commission strictly requires BNPL providers to conduct creditworthiness and affordability assessments before granting credit.
“These assessments must take into account the consumer’s overall financial commitments, including existing credit facilities from both bank and non-bank providers, as well as any new facilities being applied for,” the ministry said in a written reply on Wednesday (Oct 14).
It said that thorough checks are crucial for individuals utilising multiple BNPL platforms to ensure loans align with their actual repayment capacity.
“Excessive and uncontrolled use of multiple BNPL facilities simultaneously could lead to high repayment commitments and severely impact consumers’ financial standing,” the ministry cautioned, reminding users that BNPL remains a form of debt that must be repaid according to agreed terms.
Currently, BNPL services are regulated under the Consumer Credit Act 2025, which mandates compliance with fair and responsible lending standards set by the commission.
The ministry was responding to a question from Datuk Dr Alias Razak (PN-Kuala Nerus) regarding the commission’s measures to safeguard young people from over-indebtedness across multiple BNPL platforms.
In a separate written reply to Howard Lee (PH-Ipoh Timur), who asked if providers should freeze payment demands and late fees during unauthorised transaction disputes, the ministry clarified that BNPL providers are not legally required to automatically suspend collections while investigations are ongoing.
“Neither the Consumer Credit Act 2025 nor the standards issued by the commission impose such a requirement, as disputed transactions must first be investigated to determine whether unauthorised activity occurred,” the ministry explained.
However, providers are obligated to resolve complaints fairly, transparently, and promptly.
To safeguard users, the commission’s standards mandate robust security controls, including mandatory identity verification and a "kill switch" feature that enables consumers to immediately freeze their accounts if they suspect fraud or identity theft.
The ministry added that consumers will not be held liable for losses from unauthorised transactions if the breach was caused by systemic failures or security oversights on the provider’s end.
