BUY Now Pay Later (BNPL) has become a global phenomenon. The Malaysian BNPL industry has seen rapid growth in line with international trends. Its popularity is attributed to marketing as an interest-free way to pay by instalments, easy access via digital platforms, and seamless integration with merchant sites at the point of purchase. Yet, BNPL has raised concerns over risks of falling into unmanageable debt.
To curb the risks of harm, the Consumer Credit Act 2025 was introduced — a first for Asean, and a potential model for the region. The new laws are aimed at safeguarding credit consumers through licensing of BNPL providers, transparent disclosure of information, affordability assessments, and fair debt collection. Credit…