BNPL (Buy Now, Pay Later) is more than just a trend—it’s a financial revolution in Malaysia. For many, BNPL is a lifesaver, helping to manage cash flow by allowing flexible payments over time. With platforms like SPayLater offering 3 to 6 months of zero-interest installments, it has become a convenient tool for those who prefer spreading out expenses rather than making large upfront payments.
But is BNPL always beneficial, or does it come with hidden pitfalls? While it provides financial flexibility, unchecked usage can lead to financial strain. This guide uncovers the real impact of BNPL on Malaysians and whether it’s a smart tool or a dangerous debt cycle.
1. How BNPL Works in Malaysia
BNPL services allow you to make a purchase and split the payment into smaller installments, usually over 3 to 6 months, with zero interest if paid on time.
Popular BNPL Providers in Malaysia
| Provider | Installment Plans | Late Payment Fees | Where You Can Use It |
|---|---|---|---|
| Atome | 3, 6 months | RM30 or more | Fashion, electronics, online stores |
| Grab PayLater | 3, 6, 12 months | RM10–RM60 | Grab rides, food, retail |
| Shopee PayLater | 3, 6 months | 1.5% per month (admin fee) | Shopee purchases |
| SPayGlobal (Sarawak Pay) | 3, 6, 12 months | RM10+ | Local businesses |
| PayLater Malaysia | 3, 6 months | Varies by merchant | Online stores, travel, electronics |
| Moby Pay | 3, 6, 12 months | RM10+ | Retail, lifestyle, e-commerce |
BNPL providers make money through merchant fees, late payment penalties, and in some cases, hidden interest rates.
2. The Hidden Risks of BNPL That Most Malaysians Don’t Know
BNPL services may seem like a simple, interest-free solution, but they come with hidden risks that many users don’t realize until it’s too late. Understanding these risks can help you make informed financial decisions.
A. Late Fees Can Add Up Quickly
BNPL is marketed as zero interest, but if you miss a payment, you could be hit with late fees as high as RM30 per installment. If you keep missing payments, these fees snowball into massive debt.
Example: If you use BNPL to buy a RM1,000 phone and miss two payments, you could end up paying 6% to 10% more due to late fees, increasing your total cost to RM1,060–RM1,100.
B. No Credit Score? No Problem: But That’s the Problem
Unlike credit cards, BNPL providers don’t check your CCRIS/CTOS credit score before approving your purchase. While this makes it easier to get approved, it also means:
- No regulation: Traditional banks must follow strict lending rules, but BNPL providers operate with fewer restrictions.
- Easier to overspend: Without a credit check, you might end up with multiple BNPL accounts and stack up too many payments at once.
C. How BNPL Affects Loan Applications in Malaysia
Currently, BNPL transactions do not appear in CCRIS, but some BNPL providers may report unpaid debts to CTOS. This means that while BNPL does not impact your Bank Negara Malaysia credit report, overdue payments could still affect your ability to get loans or credit cards through CTOS. However, banks may still analyze your bank statements and disposable income to assess financial stability.
Example: If a bank sees that you have RM2,000+ in BNPL installments every month, they might reject your housing or car loan application because they assume you’re overextended financially.
3. Who Actually Benefits from BNPL in Malaysia?
A. The BNPL Providers : They earn through:
✓ Merchant fees (businesses pay BNPL platforms to offer installment plans)
✓ Late fees (if you miss payments, they profit)
✓ Possible hidden interest (some providers charge up to 1.5% per month on longer installments)
B. Retailers & E-Commerce Stores : BNPL encourages impulse buying.
✓ Malaysians using BNPL spend 30-50% more per transaction compared to those using debit or credit cards.
✓ Many stores increase prices slightly to offset the merchant fees charged by BNPL providers.
C. Consumers (Only If Used Responsibly) : BNPL can be beneficial if:
✓ You always pay on time.
✓ You use BNPL for essential purchases only, not luxury items.
✓ You don’t have multiple BNPL accounts running at once.
4. The Right Way to Use BNPL (And Avoid the Debt Trap)
If you must use BNPL, here’s how to do it safely:
✓ Use BNPL only for essential or planned purchases (e.g., a laptop for work, home appliances, medical expenses).
✓ Track your monthly BNPL commitments – If your BNPL payments exceed 20% of your income, you are at high risk of financial strain.
✓ Set reminders for due dates – Late fees are BNPL’s biggest trap, so always ensure you pay on time.
✓ Limit your BNPL accounts – Stick to one BNPL provider to avoid confusion and debt stacking.
✓ If you already have credit card debt, avoid BNPL – It will only make your financial situation worse.
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5. Is BNPL the Future of Payments in Malaysia?
The BNPL industry in Malaysia is expected to grow by 30% annually, with more providers entering the market. However, Bank Negara Malaysia (BNM) is stepping in to regulate BNPL providers to prevent financial risks.
What Could Happen Next?
✓ Stricter regulations to protect consumers from hidden fees
✓ BNPL transactions may start appearing on credit reports
✓ Possible new rules requiring credit checks before approval
BNPL is convenient, but it comes with risks. If used wisely, it can help manage cash flow. If abused, it can trap you in an endless debt cycle.
Final Thoughts : Should Malaysians Use BNPL?
BNPL is not free money—it’s still a form of debt. Malaysians should treat BNPL like a credit card and only use it if they can pay on time and manage their finances properly.
If you’re using BNPL for unnecessary shopping, consider switching to a zero-fee credit card instead. At least with a credit card, you build your credit score and can earn rewards or cashback.
Want to learn more about smart financial strategies?
Check out our guide: Best Side Hustles in Malaysia (2024): How to Make RM3,000+ Per Month
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