Consumer Credit Commission To Implement Comprehensive Regulatory Framework For BNPL Schemes

KUALA LUMPUR, July 21 (Bernama) -- The Consumer Credit Commission (CCC) will implement a comprehensive and sustainable regulatory framework for the “buy now, pay later” (BNPL) scheme to ensure the public does not fall into debt traps or face a rise in bankruptcy cases.

Deputy Finance Minister Lim Hui Ying said that under the framework, BNPL companies will be required to conduct debt affordability assessments before approving credit facilities for consumers.

“This assessment is crucial to ensure that credit users can repay the borrowed amount without facing serious financial stress or falling into a debt trap.

“The CCC will enforce compliance within the BNPL industry regarding the requirement to carry out these affordability assessments. Currently, most BNPL users take out small loans that do not exceed the legal threshold for bankruptcy proceedings,” she said when tabling the Consumer Credit Bill 2025 for the second reading in the Dewan Rakyat today.

Lim said that the CCC will also require BNPL providers to transparently disclose all information related to credit terms, including fees, before any credit facility is offered.

“The government also emphasises the importance of financial literacy so that the public is better equipped to manage their finances and understand the risks of excessive BNPL usage.

“This approach aims to protect consumers from uncontrollable debt burdens and promote responsible borrowing practices,” she said, adding that the BNPL market in Malaysia is expanding rapidly. 

Currently, 16 companies offer BNPL schemes, with SPay Later, Atome, and GrabPay Later being the three largest providers, collectively holding over 95 per cent of market share.

-- BERNAMA