KUALA LUMPUR: Transactions under the Buy Now, Pay Later (BNPL) financing scheme totalled RM7.1 billion in the second half of last year.
Finance Minister II Datuk Seri Amir Hamzah Azizan said that this marked a significant increase compared to RM4.9 billion in the first half of the year.
“As of the end of December 2024, there were 5.1 million active BNPL users,” he said.
“The majority of BNPL users are between the ages of 21 and 45, with a monthly income of less than RM5,000.”
“Currently, 12 companies in Malaysia offer BNPL schemes,” he said during the question-and-answer session in the Dewan Negara today.
He was responding to Mussodak Ahmad, who had inquired about the government’s efforts to regulate the activities of non-bank credit providers, such as BNPL schemes.
Amir Hamzah said that the Finance Ministry was expected to table the second reading of the Consumer Credit Bill in the Dewan Rakyat during the next session.
He said that the bill was part of the government’s efforts to strengthen consumer protection for credit users in Malaysia.
“The bill will establish a comprehensive and integrated regulatory framework for the non-bank credit industry,” he said.
“It will cover companies offering BNPL schemes, leasing and factoring firms, as well as credit service providers such as impaired loan buyers, debt collection agencies, and debt counselling and management agencies.”
He added that, if passed, the bill would be administered by a new authoritative body, the Consumer Credit Commission, under the ministry.
“Credit providers and credit service providers will be required to comply with conduct regulations to ensure responsible and fair lending practices, thereby protecting credit consumers. This includes conducting affordability assessments to evaluate a consumer’s ability to take on debt.”
“The assessment will consider the borrower’s repayment capacity, taking into account all financial commitments, spending patterns, and debt repayment history,” he said.
Under the bill, Amir Hamzah said that BNPL providers must also adhere to ethical standards and conduct requirements, including transparency in fees and charges, fair credit terms, and regular reminders to borrowers about outstanding payments.
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