BNPL balances reached RM5.3 billion in the first quarter of 2026, with RM181 million in overdue payments.
PETALING JAYA: Outstanding Buy Now, Pay Later (BNPL) balances reached RM5.3 billion in the first quarter of 2026, with RM181 million in overdue payments, representing 3.4% of total BNPL balances, the Finance Ministry (MOF) said.
In a written parliamentary reply, the ministry said the number of active BNPL account holders had increased to eight million as usage continued to rise, particularly among younger consumers.
“Approximately 40% of BNPL usage involves individuals aged 30 and below. BNPL is commonly used for small-value daily purchases such as food, groceries, transport and services, with the average transaction value below RM100.
“Despite the increase in usage, BNPL debt remained relatively low, accounting for about 0.3% of total household debt as at the end of 2025,” it added.
MOF said the government is strengthening oversight of the growing BNPL sector through licensing requirements and consumer protection measures to ensure the facility is used responsibly.
It said all BNPL providers are now required to obtain licences from the Consumer Credit Commission (CCC) to ensure they meet regulatory, governance and consumer protection requirements.
“The licensing requirement enables the CCC to ensure that only providers that meet regulatory, governance and consumer protection standards are allowed to operate,” it said, adding that the licensing application period opened on June 1, with existing BNPL providers given until Nov 30 this year to submit their applications.
MOF emphasised that the CCC has also introduced Authorisation Standards and Conduct Standards, which require BNPL providers to conduct creditworthiness and affordability assessments before approving financing.
It stressed that providers are also prohibited from granting or increasing credit facilities to consumers who are likely to face difficulties in meeting their repayment obligations.
“BNPL providers must provide clear information on terms, fees and charges while ensuring that marketing and promotional activities do not mislead consumers.”
On whether an interest rate cap would be introduced, the ministry said the CCC is still reviewing the matter.
“The CCC is also examining the need for consumer protection measures relating to limits on the interest rates imposed by BNPL providers. Any decision will be made cautiously and guided by sufficient empirical data and evidence,” it said.
MOF said the assessment would take into account BNPL usage patterns, repayment rates, overdue balances, the risk of consumer over-indebtedness, as well as the impact on access to credit and the development of the consumer credit sector.
“The government will continue to ensure a balance between consumer protection, responsible access to financing, and the development of an efficient, fair and transparent credit industry,” it said.
