Malaysia’s BNPL market has 7.5 million users with RM21.3 billion in transactions, yet debt remains a small fraction of household borrowing
PETALING JAYA: Malaysia’s buy now, pay later (BNPL) market has grown rapidly, with approximately 7.5 million active users recorded as of the end of 2025, according to the Consumer Credit Oversight Board (CCOB).
Despite the surge in usage and transaction volume, regulators say BNPL-related debt currently poses a limited risk to household financial stability, though close monitoring remains necessary.
Based on findings from the BNPL Survey 2024 conducted by the CCOB, which gathered responses from about 21,000 participants, the majority of BNPL users in Malaysia maintain a relatively limited number of accounts.
“About 87% of respondents reported holding one or two BNPL accounts at any given time, suggesting that widespread multi-platform usage remains contained.
As of December 2025, BNPL-related liabilities are estimated to account for approximately 0.3% of total household indebtedness,“ CCOB said in its reply to theSun.
In terms of activity, BNPL transactions reached 243 million in 2025, with a total transaction value of RM21.3 billion, which indicates strong consumer uptake, particularly for short-term financing of retail purchases, although regulators emphasise that the overall exposure remains small when compared with other forms of household borrowing.
According to CCOB, a BNPL account is classified as “overdue” or non-performing from as early as one day past due following a missed repayment obligation.
This threshold is notably tighter than traditional credit products, reflecting regulators’ intent to closely track early signs of repayment stress among users.
Meanwhile, according to the CCOB Task Force, this suggests that BNPL debt remains a relatively small component of overall household financial obligations and does not, at present, pose a systemic risk.
Looking ahead, oversight of BNPL risks will fall under the Consumer Credit Commission (CCC), which will adopt a holistic and risk-based approach rather than relying on a single numerical threshold to determine systemic risk.
The CCC will assess multiple indicators, including market behaviour, borrowing patterns, repayment performance and consumer welfare trends.
“BNPL obligations are considered manageable when overdue amounts remain small relative to total household debt, repayment performance is consistently strong and consumer complaints stay within manageable levels,” CCOB said.
However, regulators cautioned that the risk profile could shift if certain warning signs emerge. These include a sharp increase in overdue BNPL payments, rapid growth in BNPL liabilities relative to household debt, or a significant rise in consumer complaints related to BNPL practices.
Such developments would signal emerging vulnerabilities in household financial resilience and warrant closer regulatory scrutiny.
To address potential risks, the CCC will conduct ongoing surveillance of the BNPL sector using a proportionate supervisory framework. which aims to ensure that risks are identified early without unnecessarily restricting consumer access to short-term credit options that, when used responsibly, can support household cash flow.
The CCOB Task Force reiterated that regulatory oversight will continue to evolve alongside market developments, balancing innovation in consumer credit with safeguards to protect borrowers and maintain financial stability.
