BNPL’s New Reality: How Malaysia’s Rules Aim To Protect Shoppers
The BNPL Boom
Buy Now, Pay Later (BNPL) has gone from buzzword to default setting for many Malaysians. Need new kicks before payday? Done. Upgrading your phone to the shiny new iPhone 17? Easy. With just a few taps, shoppers can split payments over months without any credit card, interest, or guilt.
In 2023 alone, BNPL transactions here hit roughly RM9.3 billion, proving this once-niche payment option is now everyday spending behaviour. From flash sales to impulsive splurges, BNPL has made it easier to say yes first and sort out the details later.
The End of the Wild West
However, this freewheeling era is coming to an end. The Consumer Credit Act 2025, passed by Parliament in July, marks the start of tighter oversight for BNPL providers. The new law introduces a national licensing framework for credit providers, while a new Consumer Credit Oversight Board (CCOB) will join forces with Bank Negara Malaysia to keep things fair, transparent, and drama-free.
In short, the days of surprise fees and shadowy fine print in a previously unregulated space are numbered.
What Shoppers Need to Know
Under the new rules, BNPL operators must obtain licences to operate legally. They’ll need to run affordability checks before approving installments (no more auto-yes for everyone), and they must display all fees and terms upfront before you tap ‘Confirm Purchase’.
Late charges will be capped, and your repayment history will now show up in your credit report. Translation: BNPL can boost your credit score if you’re timely, or hurt it if you’re not.
Responsibility Meets Convenience
For consumers, these changes mean more protection but also greater accountability. Those juggling three BNPL apps and five overlapping instalments might start feeling the pinch. On the flip side, consistent, on-time payments could help younger users, especially first-jobbers without a credit card, start building a positive credit record.
The era of instant approvals with minimal checks is being replaced by a system where convenience comes with responsibility.
Industry Moves and Phased Rollout
Big names like Atome, Grab PayLater, and SPayLater are already tweaking their apps: clearer breakdowns, better repayment reminders, fewer “wait, where did that fee come from?” moments.
The Act will roll out in stages through 2026, with early improvements including more transparent app disclosures and stronger complaint channels. As enforcement ramps up, the goal is to balance innovation with consumer safety keeping the benefits of BNPL while reducing the risks of debt traps.
Smart Shopping Tips
Rules help, but good habits matter more. Best to treat BNPL like any other form of credit:
- Track your instalments like you track your coffee points
- Don’t stack multiple BNPL buys at once (your future self will thank you)
- Save it for essentials or planned purchases, not late-night scrolling sprees
- Check repayment terms carefully so you don’t trip up
- Watch for overlapping instalments that could hurt your budget
- Make use of app reminders so you stay on track
In the end, the best kind of debt is the one you never forget to pay. While the new law can make Pay Later safer, only you can make it smarter.
