BNPL Malaysia 2026: Risks, Shariah Compliance & Smart Usage Guide
•By Shazwan Ismaon
Artikel ini juga tersedia dalam Bahasa Melayu
Loading...
Buy Now Pay Later (BNPL) is no longer a new trend — it has become an integral part of how Malaysians shop. From buying gadgets on Shopee, paying bills on Grab, to purchasing clothes on Atome — everything can be paid in instalments without a credit card.
But behind this convenience lies a concerning reality: over 70% of BNPL users in Malaysia come from the B40 group, the lowest income bracket. In the first half of 2025 alone, Malaysians made 102.6 million BNPL transactions worth RM9.3 billion — a 31% increase from the previous period.
So, is BNPL a smart financial tool or a hidden debt trap? In this article, we break down everything — from the latest data, hidden risks, Shariah rulings, the new 2025 regulations, to tips on using BNPL without getting trapped.
BNPL (Buy Now Pay Later) is a financial service that allows you to purchase something today and pay in instalments — typically over 3 to 12 months — without requiring a credit card.
Unlike personal loans that involve lengthy approval processes, BNPL can be activated in just minutes through apps like Shopee, Grab, or Atome. Most platforms offer zero-interest instalments (0% interest) as long as you pay on time.
The concept is simple:
It's this ease and speed that has made BNPL increasingly popular — especially among Malaysia's younger generation.
The BNPL market in Malaysia is growing rapidly. Here are the latest figures you need to know:
| Metric | Figure |
|---|---|
| Total BNPL transactions (2025) | RM21.3 billion (243 million transactions) |
| H1 2025 transactions | RM9.3 billion (102.6 million transactions) |
| Active BNPL accounts (June 2025) | 6.5 million (up from 5.1 million in 2024) |
| Outstanding BNPL balance (June 2025) | RM3.8 billion |
| 2026 market projection | US$1.84 billion (+24.8% YoY) |
| 2031 market projection | US$4.55 billion |
According to Bank Negara Malaysia, the outstanding BNPL balance of RM3.8 billion represents only 0.2% of total household debt — a figure that remains manageable. However, the 24.8% annual growth indicates that BNPL usage is expanding rapidly and demands serious attention.
Three major players control 97% of all BNPL transactions in Malaysia. Here's a quick comparison based on data from FintechNews Malaysia:
Tip: Before choosing a platform, compare the credit limits offered, late payment charges, and compatibility with stores you frequently shop at.
This is the most concerning part. Data from FintechNews Malaysia reveals the true profile of BNPL users:
These statistics raise an important question: Is BNPL truly a convenience, or is it primarily used by those who can't afford to pay upfront?
If you're in the B40 group, BNPL usage requires extra caution as your financial margin is smaller — one mistake can have a significant impact.
BNPL looks easy and attractive. But behind those "interest-free" instalments, there are hidden risks that can damage your finances. According to research by Bank Islam, here are the 5 main risks:
When you use BNPL across multiple platforms simultaneously — SPayLater for a phone, Grab PayLater for food, Atome for clothing — instalments overlap. Without realising it, your monthly commitments can increase dramatically.
BNPL creates an illusion of affordability. When you see the option to "pay just RM33/month", your brain tends to underestimate the actual total. Studies show BNPL users tend to spend more compared to cash buyers.
Despite being advertised as "0% interest", most platforms charge late payment fees if you miss a payment. These charges can range from RM10–RM50 each time, and they accumulate if you're consistently late.
This is the risk most people don't know about — BNPL loan data is now reported to CTOS. Failure to pay can damage your credit score, making it harder to apply for home loans, car loans, or credit cards in the future.
At a macro level, increased BNPL usage among lower-income groups can raise household debt — a systemic risk to the national economy.
For Muslims in Malaysia, the Shariah ruling on BNPL is a crucial matter. Here are the latest developments:
In January 2024, Bank Negara Malaysia's Shariah Advisory Council clarified that BNPL can be viewed as an extension of traditional sale contracts and is permissible in Islam, provided transactions comply with Shariah principles.
BNPL is considered halal if it meets these conditions:
In 2021, the Mufti of the Federal Territory declared SPayLater (Shopee) as haram due to riba elements — specifically late payment charges. However, after Shopee updated their policy and removed late fees, SPayLater's status changed to permissible (harus) in 2023.
According to AKPK via Malay Mail, "items may be halal, but contracts must be Shariah-compliant." This means you should check each platform's terms and conditions before using them.
Advice: If in doubt, choose platforms that clearly state Shariah compliance in their terms.
Before July 2025, Malaysia's BNPL industry operated in a legal "grey area" — no specific regulations governed them. But things changed when the Consumer Credit Act was passed in Parliament.
The new law introduces several important protections:
For you as a consumer, this is good news. It means:
Many people don't know that BNPL usage can now affect your credit record. Here's the explanation:
| Aspect | CCRIS | CTOS |
|---|---|---|
| Operator | Bank Negara Malaysia | Private company (CTOS Digital) |
| Data type | Loan facts, repayment patterns | Numeric credit score (300–850), financial behaviour |
| Credit score? | No | Yes (300–850) |
| Check cost | Free (eCCRIS) | Free (basic) or paid (full report) |
Since the implementation of the Consumer Credit Act 2025, loan data from non-bank lenders — including BNPL — is now reported to CTOS and other credit reporting systems.
This means:
Important: If you're planning to apply for a home or car loan soon, make sure your BNPL record is clean first. Check your credit score for free at CTOS.
BNPL isn't something to avoid entirely — it can be a useful financial tool when used correctly. Here are 7 tips to ensure you don't get trapped:
Limit your total BNPL instalments to a maximum of 10–15% of your monthly income. If your salary is RM3,000, BNPL instalments shouldn't exceed RM300–RM450.
BNPL should be used for items you genuinely need — like a laptop for work or kitchen equipment. Not for "nice to have" items that can be postponed.
The more active platforms, the harder it is to track commitments. Limit to 1–2 platforms at any one time.
Late fees may seem small (RM10–RM50), but they add up. More importantly, they affect your credit score. Set reminders or auto-debit for every instalment.
Use a spreadsheet or financial app to record all active BNPL instalments — amounts, due dates, and balances. Don't rely on memory alone.
Every 3–6 months, check your credit score on CTOS or eCCRIS. This allows you to detect any issues early before they become serious.
Before activating any BNPL, ensure you already have an emergency fund covering at least 3 months of expenses. This is your safety net if something unexpected happens.
No. BNPL doesn't require a credit card and typically offers 0% interest instalments for short periods. However, both involve credit — and both can affect your credit score if not managed properly.
Yes, as long as you use legitimate platforms regulated under the Consumer Credit Act 2025. Make sure you read the terms and conditions before agreeing.
Credit limits vary by platform and user profile. SPayLater typically starts from RM200–RM500, while Grab PayLater and Atome can reach RM1,000–RM5,000 depending on usage history.
Late fees will be charged (depending on the platform), your credit score may be affected, and your BNPL account may be suspended. In serious cases, debt may be referred to collection agencies.
Not comprehensively yet, but BNPL data is now being reported to CTOS under the Consumer Credit Act 2025 framework. This means your BNPL activity may be visible to financial institutions.
Technically, yes — most platforms don't set a minimum salary. But you need to be extra careful. Ensure BNPL instalments don't exceed 10% of your income.
It depends on the platform and contract terms. BNM's Shariah Advisory Council has generally permitted BNPL, but late charges that constitute riba are still prohibited. Choose Shariah-compliant platforms like Split or SPayLater (latest version).
Save first and buy with cash (delayed gratification), use your emergency fund for urgent needs, or consider Shariah-compliant micro-financing if necessary.
BNPL is a new reality in Malaysia's financial landscape — it's not inherently "bad", but it's also not "free". With over 6.5 million active accounts and transactions exceeding RM21 billion annually, BNPL has become part of Malaysians' financial lives. The key is to use it wisely, understand its risks, and always prioritise long-term financial health.
If you want to build a solid financial foundation before using any credit products, the first step is understanding the capital market and investments.
Open a CDS trading account to start investing on Bursa Malaysia — your first step towards financial freedom. Open a CDS account now.
Download the free Stock Market Basics ebook to understand investment fundamentals before making any financial decisions. Get the free ebook here.