Consumer Credit Commission Establishment Timely To Safeguard Consumers From Credit Service, BNPL Providers - BNM

KUALA LUMPUR, March 31 (Bernama) -- The establishment of the Consumer Credit Commission is timely and important in safeguarding consumers through the regulation and supervision of previously unregulated nonbank credit and credit service providers, including buy now pay later (BNPL) providers.

Bank Negara Malaysia (BNM) said in the BNPL segment, outstanding exposures continued to be small at 0.3 per cent of total household debt, although its rapid expansion warrants close monitoring.

“The establishment of the commission will bring previously unregulated non-bank credit providers and credit service providers, including BNPL providers, under a formal regulatory and supervisory framework.

“This is expected to strengthen existing consumer protection and oversight efforts,” it said its Financial Stability Review for the second half of 2025 (2H 2025).

BNM said the continued expansion of BNPL schemes remain a key area of surveillance for the central bank. 

It said the total volume and value of BNPL transactions increased to 140.3 million transactions and RM11.9 billion respectively in 2H 2025 compared to 102.6 million transactions and RM9.3 billion respectively in 1H 2025.

“Correspondingly, total outstanding BNPL debt increased to RM4.9 billion as of end- December 2025 from RM3.8 billion in June 2025.

“Growth continues to be primarily driven by a sharp rise in active BNPL users, with active accounts reaching 7.5 million (June 2025: 6.5 million),” it said.

BNM added that the share of overdue BNPL debt was stable at 3.2 per cent of total outstanding BNPL debt (June 2025: 3.2 per cent), remaining below levels observed during the early stages of the segment’s emergence of six per cent in March 2023.

-- BERNAMA