MALAYSIANS aged 30 and below made 65.9 million buy now, pay later (BNPL) transactions worth RM5.4bil in the first half of 2026, accounting for 37.9% of all such transactions nationwide, says the Finance Ministry.
The transactions represented 36.7% of the total RM14.7bil value of BNPL transactions recorded nationwide during the period, which saw 173.9 million transactions.
In a written reply, the ministry said that as at June 30, outstanding BNPL financing among young consumers stood at RM2.4bil, with RM96.8mil in unpaid amounts, equivalent to 4% of the total outstanding balance.
It said the Consumer Credit Commission (SKP) required BNPL providers to conduct creditworthiness and affordability assessments before extending credit, taking into account consumers’ overall financial commitments, including facilities obtained from banks and non-bank credit providers.
The ministry said such assessments were particularly important for consumers using multiple BNPL platforms, as they would help ensure credit was offered according to their repayment capacity and reduce the risk of excessive debt.
“Excessive and uncontrolled use of multiple BNPL facilities at the same time could result in high repayment commitments and affect consumers’ financial position,” it said, reminding consumers that BNPL was a form of credit that had to be repaid according to agreed terms.
BNPL services are regulated under the Consumer Credit Act 2025, which requires providers to comply with standards and licensing requirements set by SKP to promote fair and responsible lending.
The ministry was responding to Datuk Dr Alias Razak (PN-Kuala Nerus), who asked how SKP protected young people from excessive BNPL debt, including by ensuring affordability assessments took into account their credit commitments across multiple providers.
In a separate written reply to Howard Lee (PH-Ipoh Timur), the ministry said BNPL providers were not required to automatically suspend payment demands, late charges or debt collection activities when consumers disputed unauthorised transactions.
“The Act and standards issued by the Consumer Credit Commission do not impose such a requirement.
“This is because a disputed transaction needs to be investigated first to determine whether it is an unauthorised transaction,” it said.
The ministry added that each dispute had to be assessed based on the relevant facts and evidence, while providers were required to handle complaints and disputes fairly, transparently and promptly.
Under the standards, providers must implement appropriate security measures, including reasonable identity and online transaction verification, to reduce the risk of unauthorised transactions.
They must also provide a “kill switch” that allows users to suspend or disable their accounts if they suspect fraud, identity theft or unauthorised activity.
The ministry said consumers could not be held responsible for losses arising from unauthorised transactions in certain circumstances, including when the losses resulted from weaknesses in providers’ systems or security controls, or their failure to comply with the standards.
