Kuala lumpur: Buy Now, Pay Later (BNPL) facilities remain under control, but regulatory measures are being strengthened to protect consumers through the Consumer Credit Act 2025 (CCA).

According to BERNAMA News Agency, Second Finance Minister Datuk Seri Amir Hamzah Azizan reported that 102.6 million BNPL transactions, worth RM9.3 billion, were recorded in the first half of this year. This reflects a 3.1 percent increase compared to RM7.1 billion in the second half of last year. As of June 30, 2025, the total BNPL loans amounted to RM3.8 billion, representing only 0.2 percent of the total household debt in the country.

Amir Hamzah noted that the amount of unpaid or overdue BNPL loans is currently under control, with figures standing at RM121.8 million, or 3.2 percent of the total BNPL loans. He emphasized that with the new CCA 2025 act, regulation in this sector will be enhanced to ensure better control in the future. This statement was made during a question-and-answer session at the Dewan Rakyat, responding to Datuk Awang Hashim (PN-Pendang) regarding the government’s stance on classifying certain BNPL schemes as credit risks and imposing usage limits on specific products.

Further, Amir Hamzah highlighted that the newly formed Consumer Credit Commission (CCC) is studying interest rate caps imposed by BNPL providers while considering Shariah-compliant mechanisms. This was in response to Young Syefura Othman (PH-Bentong), who inquired about the ministry’s plans concerning interest rate caps and ensuring Shariah compliance.

Currently, some BNPL providers charge interest rates at approximately 1.5 percent per month or about 18 percent per annum, with industry rates ranging from 15 to 30 percent annually. However, there are providers that do not charge interest fees. The CCC aims to gather comprehensive information to regulate this matter effectively.

Under the CCA, companies offering BNPL schemes will need to comply with responsible credit conduct and lending practices to protect consumers. Assessing debt repayment ability is a critical requirement, ensuring borrowers, especially the younger generation, can manage their debts without falling into financial distress.

Amir Hamzah also emphasized the importance of financial literacy, urging citizens to manage their finances wisely and understand the risks of excessive BNPL usage to avoid the burden of uncontrolled debt.