Malaysia BNPL Transactions Jump 23.9% to 173.9 Million in H1 2026

Six months, 173.9 million BNPL transactions

Malaysia's buy now, pay later market grew by more than a fifth again in the first half of 2026, even though this was the first period in which a dedicated credit regulator supervised it. Prime Minister Anwar Ibrahim, who is also Finance Minister, said in a written parliamentary reply that BNPL transactions rose 23.9% to 173.9 million in the first half of the year, up from 140.4 million in the second half of 2025.3 Their value grew 22.5% to RM14.7 billion, from RM12 billion.3

The reply, dated October 19, answered Bachok MP Mohd Syahir Che Sulaiman, who had asked for an update on BNPL use and unpaid balances.3 Active account holders rose 22.7% to 9.2 million as of June 30, 2026. Outstanding BNPL financing stood at RM6.6 billion.3 Arrears were RM220.4 million, or 3.3% of the outstanding balance, and the government described that level as under control.3

The figures were reported the same way across outlets. The New Straits Times led with the 22.5% rise in value to RM14.7 billion.12 Berita Harian focused on the 23.9% rise in transaction numbers. Entertainment-news site World of Buzz, citing the Berita Harian report, ran the same numbers under the more anxious headline "Are We Broke?"9 The data itself is not in dispute. What the coverage disagrees on is whether the growth is a warning sign or just evidence that BNPL has gone mainstream.

The longer trend is steeper than the headline

The 20%-plus headline compares two consecutive half-years. A year-on-year comparison shows faster growth. In July 2025, while the Consumer Credit Bill was being debated, the government reported 102.6 million transactions worth RM9.3 billion for the first half of 2025, with 6.5 million active accounts.1 Set against the new numbers, that means transaction value grew by more than half in a year, transaction count by roughly two-thirds, and active accounts by around 40%. These are this article's own calculations from the officially reported figures.

The official record has inconsistencies of its own. A Bernama report republished on the Finance Ministry's site said the RM9.3 billion first-half 2025 figure was a 3.1% increase over RM7.1 billion in the second half of 2024.4 The Edge reported the same jump as more than 30%,1 and the actual arithmetic supports The Edge's figure. The error does not change the overall picture, but it shows why readers should check growth rates against the underlying numbers.

Outstanding balances also climbed quickly. Media Selangor reported that BNPL loans had reached RM4.9 billion by December 31, 2025.7 By June 30, 2026 the total was RM6.6 billion.3 Arrears have grown at a similar pace. In mid-2025, overdue payments were RM121 million, or 3.2% of the total.1 They have now reached RM220.4 million, or 3.3%.3 So the ratio has barely moved while the ringgit amount has almost doubled. Officials are right that the ratio is stable. But a stable ratio on a fast-growing book still means more people falling behind on payments.

Young and low-income users at the centre

The more important finding concerns who is borrowing. Anwar said young people account for almost 40% of BNPL transactions. He also cited a Consumer Credit Commission (SKP) survey finding that low-income groups make up about 70% of active users.3

A separate Finance Ministry reply, to Kuala Nerus MP Alias Razak, gave a more detailed breakdown. Malaysians aged 30 and below made 65.9 million BNPL transactions worth RM5.4 billion in the first half of the year. That is 37.9% of transactions by count and 36.7% by value.7 Young users owed RM2.4 billion as of June 30, of which RM96.8 million, or 4%, was non-performing.6 That 4% is higher than the 3.3% arrears rate for all users.3 The gap is small, but it suggests younger borrowers are somewhat more likely to fall behind.

Commentators read these numbers in different ways. The Rakyat Post cited Deputy Finance Minister Liew Chin Tong as saying young Malaysians are using BNPL for everyday needs such as groceries and food delivery, which he linked to low starting salaries for fresh graduates.5 It also quoted the Malaysia Consumers Movement, which said BNPL creates a false sense of affordability and weakens financial discipline.5 Free Malaysia Today was more measured. It argued the data does not show that young Malaysians are broadly overspending or failing to cope, only that BNPL has become a large part of how they spend.8 It also noted that the ministry had put BNPL at around 0.3% of household debt earlier this year, and that Bank Negara has likewise described the segment as small relative to total household borrowing.8

Both readings hold up, but they answer different questions. At the level of the whole system, BNPL is too small to threaten financial stability. At the level of the individual, a product used mostly by low-income earners and under-30s, increasingly for basic needs, is a household-budget problem even while aggregate figures look calm.

How checkout design drives the growth

BNPL's growth is closely tied to how it is offered at the point of sale. World of Buzz described offers to split a purchase into four interest-free instalments as now standard at almost every online store.9 Free Malaysia Today reported that BNPL, once mainly an online-shopping option, is now common at physical retailers too, citing SKP. Food and beverages, retail, transport and other services are where it is most used.8

The average transaction is small. Dividing RM14.7 billion by 173.9 million transactions gives about RM85 per purchase, a rough figure that fits this pattern of everyday spending. Each purchase is minor, but the commitments accumulate. The Rakyat Post noted that BNPL apps such as Grab PayLater, Atome and SPayLater each bill separately, so a user with several accounts has several payments due every month.5 It also pointed out that credit card applications involve income and background checks that BNPL sign-ups have generally not required.5

That difference was what Malaysia's new law was meant to address. The Finance Ministry said SKP requires affordability assessments that take into account a consumer's total commitments, including credit from both banks and non-bank lenders. It said this matters most for people using several BNPL platforms.6 Anwar added that providers may not grant or raise credit for consumers likely to struggle with repayment, and must disclose fees clearly and avoid misleading marketing.3

Coverage differs on how strict the checks actually are. One industry explainer said affordability checks are now required before any BNPL transaction is approved.10 Free Malaysia Today reported a narrower rule: SKP requires an assessment when a user receives a credit limit above RM1,000, and providers can choose lower thresholds for vulnerable groups.8 The RM1,000 threshold is the more specific and more credible account. If it is correct, many small checkout purchases, which make up most of the volume, may never trigger a full assessment. The Rakyat Post also noted that the reply to Alias Razak did not set out specific SKP measures for young users. It did not confirm how commitments across several BNPL platforms would be checked in practice.5

A new regulator's first test

All of this is happening as the regulator is still being set up. The Consumer Credit Act 2025 took effect on March 1, bringing previously unregulated non-bank credit, including BNPL, under SKP.8 When the bill passed in July 2025, Malaysia had 16 BNPL providers. Officials said the first phase of the rollout was mainly about collecting data, and that interest-rate caps would come later.1 In August 2025, Second Finance Minister Amir Hamzah Azizan said BNPL interest rates generally ran from 15% to 30% a year, while some providers charged nothing. He said the commission was studying caps, including Shariah-compliant options.4

Gaps in consumer protection remain. In a reply to Ipoh Timur MP Howard Lee, the ministry said providers do not have to automatically suspend payment demands, late fees or debt collection while a customer disputes a transaction as unauthorised.6 Providers must, however, offer a "kill switch" that lets users freeze their accounts if they suspect fraud.6

How Malaysia compares

Other countries are dealing with the same issues. In the UK, upfront affordability checks for BNPL, access to the Financial Ombudsman and Section 75 joint liability took effect on July 15, 2026. Consumer group Which? has criticised checkout pages that show four or five BNPL options with little explanation of how they differ. Singapore takes a lighter approach. Its government said in February that BNPL made up less than 2% of card payment value. It relies on an industry code that suspends overdue accounts and requires extra checks for limits above S$2,000, and it concluded that further measures were not needed for now.16

Compared with these markets, Malaysia's has two distinguishing features: unusually fast growth, and heavy use by low-income and young consumers. Officials are right that arrears are contained for now. Still, after a year in which transaction value grew by more than half, the evidence suggests the regulator's data-collection phase has run long enough. Tighter rules on checkout-level affordability checks, combined BNPL exposure across providers, and fee caps now look overdue.