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). Second Finance Minister Datuk Seri Amir Hamzah Azizan shared that the latest statistics revealed 102.6 million BNPL transactions worth RM9.3 billion were recorded in the first half of the year, marking a 3.1 percent increase compared to RM7.1 billion in the second half of the previous year.
According to BERNAMA News Agency, the total BNPL loans as of June 30, 2025, amounted to RM3.8 billion, constituting only 0.2 percent of the total household debt in the country. Amir Hamzah assured that the amount of unpaid or overdue BNPL loans remains under control, standing at RM121.8 million or 3.2 percent of the total BNPL loans. He emphasized the importance of the newly approved CCA 2025 in enhancing regulation to ensure better control of the BNPL sector in the future.
Amir Hamzah addressed inquiries from Dewan Rakyat members, including Datuk Awang Hashim (PN-Pendang), regarding the potential classification of certain BNPL schemes as credit risks and the imposition of usage limits on products like staple foods to prevent debt accumulation. He noted the establishment of the Consumer Credit Commission (CCC), which will regulate current developments in the credit industry, including BNPL, by studying interest rate caps and considering Shariah-compliant mechanisms.
Responding to Young Syefura Othman (PH-Bentong), Amir Hamzah mentioned that some BNPL providers charge interest rates at 1.5 percent per month or about 18 percent per annum, with industry rates ranging from 15 to 30 percent per annum. He highlighted that some providers do not charge interest fees, and the CCC is working to gather comprehensive information to regulate this matter effectively.
Under the CCA, BNPL companies will be required to adhere to responsible credit conduct and lending practices to protect consumers. Amir Hamzah stressed the necessity of assessing debt repayment ability to prevent borrowers, particularly the younger generation, from falling into a debt trap. He also underscored the government’s emphasis on financial literacy to help citizens manage their finances wisely and understand the risks associated with excessive BNPL usage.