KUALA LUMPUR: Malaysians aged 30 and below made RM5.4 billion worth of purchases through Buy Now, Pay Later (BNPL) schemes in the first half of 2026, with RM96.8 million in outstanding payments, as the government strengthens safeguards against excessive borrowing.
The Finance Ministry said young consumers accounted for 65.9 million BNPL transactions between January and June, representing 37.9% of the 173.9 million transactions recorded nationwide.
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Their transactions amounted to 36.7% of the total RM14.7 billion spent through BNPL facilities during the period.
As at June 30, outstanding BNPL financing among consumers in this age group stood at RM2.4 billion, of which RM96.8 million, or about 4%, remained unpaid. The ministry described the level as still manageable.
In a written parliamentary reply to Kuala Nerus MP Datuk Dr Alias Razak on Tuesday, the ministry said the Consumer Credit Commission (SKP) required BNPL providers to evaluate applicants’ overall financial commitments before granting financing.
“The assessment must take into account consumers’ total financial commitments, including credit facilities obtained from banks and non-bank lenders, as well as new credit facilities being applied for,” it said.
The ministry said this assessment was particularly important for consumers with BNPL accounts across multiple providers, as taking on excessive credit could make repayments difficult to manage.
It cautioned that using several BNPL facilities at the same time without proper financial planning could increase monthly repayment obligations and threaten consumers’ financial stability.
In a separate written reply to Ipoh Timor MP Lee Chuan How, the ministry said consumers who lodged complaints over suspected fraudulent BNPL transactions were not automatically exempt from payment demands, late charges or debt collection while investigations were under way.
It said the Consumer Credit Act 2025 (Act 873) and its accompanying Conduct Standards did not require providers to suspend such measures automatically upon receiving a complaint.
“This is because disputed transactions must first be investigated to determine whether they were unauthorised,” it said.
Nevertheless, BNPL providers are required to put safeguards in place, including a “kill switch” that allows consumers to suspend their accounts when fraud or identity theft is suspected.
The ministry added that consumers could be protected against losses arising from unauthorised transactions linked to security weaknesses or a provider’s failure to comply with regulatory requirements.
It said providers must handle disputes fairly and promptly, warning that breaches of regulatory standards could result in enforcement action by SKP.