Ever wanted to buy something but hesitated because of the hefty upfront cost?
That’s where Buy Now, Pay Later (BNPL) steps in. It allows you to split payments over a few months, often interest-free, making big purchases feel more manageable.
Instead of paying RM1,500 for a new phone all at once, you could break it into three to six smaller payments.
Sounds convenient? It is—but there’s a catch.
Many users fall into the trap of overspending, missing payments, and racking up late fees. BNPL Malaysia has grown rapidly, but without proper budgeting, it can lead to financial strain rather than flexibility.
So, how do BNPL schemes in Malaysia work, and what should you watch out for? Read on to find out.
What is Buy Now, Pay Later (BNPL)?
Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to split their purchases into smaller, manageable installments over a fixed period.
It has become a popular payment option in Malaysia, especially for online and retail shopping.
Key Features of BNPL
- Interest-Free Payments – Many BNPL providers offer zero-interest installment plans if payments are made on time.
- Flexible Repayment Terms – Payments are typically divided into 3 to 6 months, depending on the provider.
- No Credit Card Needed – Unlike traditional credit cards, BNPL services do not always require a credit check.
- Popular for Everyday Purchases – Commonly used for electronics, fashion, household goods, and other moderately expensive items.
Why is BNPL So Popular in Malaysia?
BNPL is booming! Here are some mind-blowing stats:
- 3.7 million Malaysians use BNPL services.
- BNPL transactions hit RM7.1 billion in just the second half of 2024.
- 77.3 million BNPL transactions were made in 2023, totaling RM6.2 billion (USD $1.38 billion).
Why are people loving BNPL?
- Flexibility – You don’t need to pay everything at once.
- Easy approvals – You don’t need a perfect credit score.
- No interest (mostly) – Unlike credit cards, most BNPL plans don’t charge interest.
- Perfect for online shopping – BNPL is built into apps like Shopee and Grab, making checkout a breeze.
How Does BNPL Work?
Using BNPL is super simple:
- Pick BNPL at checkout (online or in-store).
- Make a small down payment, usually 25%.
- Split the rest into instalments (typically over 3–6 months).
- Payments are auto-deducted from your bank account or card.
🚨 But watch out! While many BNPL providers claim to be “interest-free,” some charge service fees or late penalties (RM10–RM50 per missed payment). Missing payments can also affect your credit score if reported to credit agencies.
BNPL Providers in Malaysia
Here are the major BNPL players in Malaysia:
1. Atome
If you love shopping for fashion and lifestyle products, Atome is a go-to choice.
It’s widely accepted at major brands, including Valiram, and lets you split your payments into three easy instalments. Plus, the app is user-friendly, making checkout a breeze.
Related: Atome Malaysia Review: Guide to Buy Now, Pay Later Shopping
2. Grab PayLater
This BNPL option is built into the Grab app, meaning you can use it for food deliveries, rides, and even healthcare services.
It’s a great way to manage expenses if you’re already a frequent Grab user, but be mindful of repayment deadlines to avoid fees.
3. Shopee PayLater
Shopping on Shopee? Their PayLater feature lets you buy now and pay in instalments, directly from the platform.
It’s seamless and convenient, but keep an eye on your spending—it’s easy to get carried away with one-click purchases!
4. Rely
While not as well-known as Atome or Grab, Rely is making its way into Malaysia’s BNPL scene.
It’s expanding its merchant partnerships, so expect to see it available at more stores soon.
5. Lazada PayLater, AiraPay, FavePay, MobyPay
These are other BNPL providers gaining traction in Malaysia.
Each has its own perks, whether it’s discounts, flexible plans, or easy integration with your favorite shopping apps.
Fun fact: Shopee, Grab, and Atome make up over 90% of BNPL transactions in Malaysia!
Advantages of BNPL
1. No interest (if you pay on time)
One of the biggest perks of BNPL is that you won’t be charged interest as long as you make your payments on time.
Unlike credit cards, which can hit you with high interest rates, BNPL lets you spread out payments without extra costs—just be sure to check the terms!
2. No need for a high credit score
Traditional loans and credit cards often require a good credit score, but BNPL services are more flexible.
Even if you’re new to credit or have a less-than-perfect score, you can still get approved and make purchases without jumping through hoops.
3. Faster approvals than traditional loans
BNPL approvals happen almost instantly, compared to the lengthy application process for personal loans or credit cards.
No need for extensive paperwork or waiting days for approval—just a quick sign-up, and you’re good to go.
4. Helps with budgeting (if used responsibly)
Breaking a large expense into smaller payments can make budgeting easier, especially for big-ticket items.
Instead of wiping out your savings all at once, BNPL lets you spread out payments over time—just be sure you’re not taking on more than you can handle!
Disadvantages of BNPL
1. Encourages overspending
Since you’re only paying a small amount upfront, it’s tempting to add more to your cart.
What seems like a manageable RM50 a month can quickly add up to hundreds if you’re not careful. It’s easy to spend beyond your means without realizing it.
2. Late payment fees
If you miss a payment, you’ll likely be hit with late fees, which can quickly add up.
Some BNPL providers also report missed payments to credit agencies, which could hurt your credit score. Set reminders or automate payments to avoid unnecessary charges.
3. Can lead to debt cycles
Juggling multiple BNPL purchases can get overwhelming fast.
If you’re paying off several installments at once, you might find yourself struggling to keep up, leading to a cycle of debt. Always track your payments so you don’t lose control.
4. Refunds can be complicated
Returning a BNPL purchase isn’t always straightforward. Some providers require you to continue paying until the refund is processed, which can take time.
Make sure to read the refund policy before buying, so you don’t end up stuck with payments for something you’ve already sent back.
BNPL Addiction Among Malaysian Youth
BNPL’s biggest users? Millennials and Gen Z. Here’s what’s happening:
- Nearly half of BNPL users in 2023 were under 30.
- Around 53,000 Malaysians under 30 racked up RM1.9 billion in BNPL debt.
- BNPL feels less like a loan and more like a “harmless” instalment plan – leading people to overspend without realizing it.
Some even take new BNPL loans to pay off old ones, which is a huge red flag.
BNPL Regulations in Malaysia
Seeing the risks, the government is stepping in:
- Consumer Credit Act (CCA) – A new law (expected in 2025) that will regulate BNPL providers and protect consumers from shady fees.
- Consumer Credit Commission – A new body that will oversee BNPL companies and make sure they play fair.
- Stricter transparency rules – BNPL providers will have to be upfront about fees and charges.
How to Use BNPL Safely
BNPL isn’t evil – but you need to use it smartly. Here’s how:
- Know the total cost – Don’t get caught by hidden fees.
- Set spending limits – If you wouldn’t buy it in cash, maybe don’t BNPL it.
- Avoid impulse buys – Just because you can split payments doesn’t mean you should.
- Track your payments – Too many BNPL purchases can quickly add up.
- Use autopay or reminders – Never miss a due date!
- Don’t stack multiple BNPL loans – It’s easy to lose track and overspend.
- Compare BNPL providers – Some have better terms than others.
- Seek financial advice – If BNPL debt is overwhelming, talk to a professional.
What’s Next for BNPL in Malaysia?
BNPL isn’t going anywhere.
It’s expected to grow by 15.1% in 2025 and reach US$4.22 billion by 2030.
More providers will enter the market, and new regulations will make it safer for consumers.
Final Thoughts
BNPL can be a helpful tool – but only if you’re disciplined. If you use it responsibly, it’s a great way to spread out big expenses. But if you’re not careful, it can trap you in a cycle of debt.
So before you hit that “Pay in 3 Instalments” button, ask yourself: Do I really need this? And can I afford it?
Stay smart, spend wisely, and keep your finances in check! 💰
