PETALING JAYA: Hidden charges, unclear terms and conditions, and difficulties resolving disputes with service providers are among the main complaints received by the National Consumer Complaints Centre (NCCC) involving 'buy now, pay later' (BNPL) services.
BNPL is often promoted as interest- and hassle-free when payments are made the following month, creating the perception that it is not a form of debt.
According to the 2025 fintech industry report, more than 6.5 million active BNPL accounts were recorded in Malaysia in the first half of the year, with the majority of users comprising young and middle-income earners.
Transaction value surged to RM9.3 billion last year, up more than 30 per cent from 2024, while total loans reached RM4.9 billion as of December 2025.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr T. Saravanan said the trend is fuelling a growing debt culture among those under 30, particularly individuals in the early stages of their careers who have yet to achieve financial stability.
"Although the proportion remains small compared to overall household debt, the rapid increase within a short period is concerning, especially as it involves young consumers.
"Users are still bound by repayment commitments within a stipulated period. Problems arise when purchases are made without assessing actual financial capability, as full payment is not required upfront.
"Young people are most vulnerable, as they tend to make financial decisions based on short-term affordability without considering long-term consequences," he was quoted in Utusan Malaysia.
Saravanan said the ease of registration and seamless integration of BNPL into e-commerce platforms have loosened access to credit, making it almost unrestricted.
He added that some users take up multiple BNPL facilities simultaneously without realising the total monthly commitments they are incurring.
"When payments are overdue, users face late charges or penalties, increasing their debt burden and, in some cases, affecting their credit score," he said.
Saravanan stressed the need to strengthen financial literacy so young consumers better understand the risks and responsibilities before using credit facilities such as BNPL.
He also urged the government and regulators to introduce stricter frameworks, including proper affordability assessments, reasonable credit limits and full transparency in service terms.
"Clear regulation is essential to ensure such facilities are not misused in ways that could harm consumer well-being, particularly among the young," he said.
He advised youths to exercise caution and not treat BNPL as an easy route to sustain lifestyle spending.
"BNPL should be seen as a financial commitment. Without discipline, it can become a prolonged debt burden," he said.- NST
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