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Malaysia's BNPL spending hits RM14.7 billion in H1; 4.0% of young users' balances unpaid

Published Data as of MalaysiaCreditBNPLUnsecured
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Key points

Implications for lenders

With consumers aged 30 and below carrying 4.0% of their BNPL balances unpaid, lenders assessing young applicants may want to count BNPL commitments explicitly in affordability checks rather than treat them as small purchases. Lenders that also offer BNPL can align their assessments with SKP's requirement to consider existing bank and non-bank credit.

Implications

ExecutivesBNPL use in Malaysia is growing much faster than household bank loans, and SKP's affordability rules make access to bank and non-bank credit records central to approval decisions.
InvestorsFast volume growth with a broadly stable all-age overdue share supports BNPL economics so far, but repayment by young users is a key sensitivity for providers whose users skew young.
OperatorsProviders may need to check customers' commitments across several BNPL platforms, which the ministry flagged as a source of high repayment burdens.

Facts

First half of 2026: in a written parliamentary reply published on 13–14 October, the Ministry of Finance (MOF) said Malaysians made 173.9 million BNPL transactions worth RM14.7 billion in January–June 2026. 1 The transaction count was up from 102.6 million in the first half of 2025. 2 Consumers aged 30 and below accounted for RM5.4 billion of the value 3 and 37.9% of transactions, down from about 40% in the first half of 2025. 4

Balances: at 30 June 2026, consumers aged 30 and below had RM2.4 billion of BNPL financing outstanding 5, of which RM96.8 million, or 4.0%, was unpaid. 6 The reply gives no all-age outstanding or arrears figure for June 2026.

Earlier figures: MOF reported total outstanding BNPL balances of RM3.8 billion at end-June 2025 7 with an overdue share of 3.2%, 8 and RM5.3 billion at end-March 2026 9 with an overdue share of 3.4%. 10

Rules: MOF said the Consumer Credit Commission (Suruhanjaya Kredit Pengguna, SKP) requires BNPL providers to assess creditworthiness and affordability before granting credit, taking into account a borrower's existing bank and non-bank credit, and warned that using several BNPL platforms at once can lead to high repayment commitments. SKP's standards also require identity verification and a "kill switch" that lets consumers freeze their accounts.

Analysis

Over time: transaction value rose about 58% between the first halves of 2025 and 2026 (T&S calculation from the two MOF replies). 11 Outstanding balances rose from RM3.8 billion to RM5.3 billion in the nine months to March, while the all-age overdue share edged up only from 3.2% to 3.4%. Arrears have so far grown roughly in step with balances rather than much faster. Banking-system household loans, by comparison, grew 5.2% year on year in August. 12

Young borrowers: the 4.0% unpaid share for consumers aged 30 and below is higher than the all-age overdue shares, but the June 2026 youth figure is described as unpaid and the earlier all-age figures as overdue, at different dates. The gap is a signal to watch rather than a like-for-like comparison.

Indonesia: banks' BNPL balances grew 29.10% year on year in August, 13 which is slower than Malaysia's growth in transaction value, although that compares outstanding balances with half-year transaction flows.

Counterpoints and uncertainties

The figures come from parliamentary replies rather than a regular statistical release, and definitions (overdue versus unpaid, transaction value versus balances) may differ between replies. First-half volumes can include festive-season effects. Licensing under the Consumer Credit Act 2025 may change which providers report and how, so later figures may not be comparable.

Key figures

  1. BNPL transaction value, first half of 2026: RM14.7 billion (up from RM9.3 billion in the first half of 2025)
    The comparison figure for the first half of 2025 comes from an earlier ministry reply reported by The Vibes (7 Aug 2025).
    . Value of buy-now-pay-later transactions, all ages, January–June, Ministry of Finance parliamentary reply. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: Malay Mail (Bernama): Finance Ministry — Malaysians under 30 rack up RM5.4b in BNPL transactions in first half of 2026 (2026-10-14)
  2. Number of BNPL transactions, first half of 2026: 173.9 million (up from 102.6 million in the first half of 2025). Number of buy-now-pay-later transactions, all ages, January–June, Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: Malay Mail (Bernama): Finance Ministry — Malaysians under 30 rack up RM5.4b in BNPL transactions in first half of 2026 (2026-10-14)
  3. BNPL transaction value of consumers aged 30 and below, first half of 2026: RM5.4 billion. Value of BNPL transactions by consumers aged 30 and below, January–June, Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: Malay Mail (Bernama): Finance Ministry — Malaysians under 30 rack up RM5.4b in BNPL transactions in first half of 2026 (2026-10-14)
  4. Share of BNPL transactions made by consumers aged 30 and below, first half of 2026: 37.9% (down from about 40% in the first half of 2025)
    First-half 2025 share from an earlier ministry reply reported by The Vibes (7 Aug 2025).
    . Transactions by consumers aged 30 and below as a share of all BNPL transactions (count), Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: Malay Mail (Bernama): Finance Ministry — Malaysians under 30 rack up RM5.4b in BNPL transactions in first half of 2026 (2026-10-14)
  5. Outstanding BNPL financing of consumers aged 30 and below: RM2.4 billion. Outstanding BNPL financing held by consumers aged 30 and below, end-June 2026, Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: Malay Mail (Bernama): Finance Ministry — Malaysians under 30 rack up RM5.4b in BNPL transactions in first half of 2026 (2026-10-14)
  6. Unpaid share of under-30s' BNPL balances: 4.0%
    The Star reports the amount as unpaid and Malay Mail (Bernama) as non-performing financing; the ministry's earlier all-age figures were described as overdue, so the definitions may differ.
    . Unpaid amount as a share of outstanding BNPL financing of consumers aged 30 and below, end-June 2026, Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: Malay Mail (Bernama): Finance Ministry — Malaysians under 30 rack up RM5.4b in BNPL transactions in first half of 2026 (2026-10-14)
  7. BNPL outstanding balance, end-June 2025: RM3.8 billion. Total outstanding BNPL balances, all ages, Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2025. Source: The Vibes: BNPL transactions surge past RM9 billion in H1 2025 with 40% attributed to youths (2025-08-07)
  8. BNPL overdue share of outstanding, end-June 2025: 3.2%. Overdue BNPL amounts as a share of outstanding balances, all ages, Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2025. Source: The Vibes: BNPL transactions surge past RM9 billion in H1 2025 with 40% attributed to youths (2025-08-07)
  9. BNPL outstanding balance: RM5.3 billion. Total outstanding BNPL balances, Ministry of Finance. Malaysia, BNPL. Basis date: 31 Mar 2026. Source: Malay Mail: Finance Ministry — BNPL users hit eight million as outstanding balances reach RM5.3b (2026-07-16)
  10. BNPL overdue share of outstanding: 3.4%. Overdue BNPL amounts as a share of outstanding balances, Ministry of Finance. Malaysia, BNPL. Basis date: 31 Mar 2026. Source: Malay Mail: Finance Ministry — BNPL users hit eight million as outstanding balances reach RM5.3b (2026-07-16)
  11. Growth in BNPL transaction value, first half 2026 vs first half 2025 (T&S calculation): about 58%
    Calculated from rounded ministry figures; the H1 2025 value is from a reply reported by The Vibes (7 Aug 2025).
    . T&S calculation: RM14.7bn (H1 2026) / RM9.3bn (H1 2025) − 1, from two Ministry of Finance replies. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: Malay Mail (Bernama): Finance Ministry — Malaysians under 30 rack up RM5.4b in BNPL transactions in first half of 2026 (2026-10-14)
  12. Household loan growth (BNM): 5.2% (down from 5.3% in July). Year-on-year growth of outstanding household loans, banking system. Malaysia, banking system. Basis date: 31 Aug 2026. Source: Bank Negara Malaysia: Monthly Highlights & Statistics, August 2026 (released 2026-09-30)
  13. Bank BNPL growth, year on year (OJK): 29.10% (down from 31.22% in July). Year-on-year growth in banks' outstanding BNPL credit (OJK, SLIK). Indonesia, commercial banks (SLIK data). Basis date: 31 Aug 2026. Source: Bisnis.com: Outstanding pay later di bank naik hampir 30%, kredit konsumsi lesu (2026-10-05, OJK press conference)

Sources

  1. Malay Mail (Bernama): Finance Ministry — Malaysians under 30 rack up RM5.4b in BNPL transactions in first half of 2026 (2026-10-14)
  2. The Star: Malaysian youths rack up RM5.4bil in Buy Now, Pay Later purchases (2026-10-14)
  3. The Vibes: BNPL transactions surge past RM9 billion in H1 2025 with 40% attributed to youths (2025-08-07)
  4. Malay Mail: Finance Ministry — BNPL users hit eight million as outstanding balances reach RM5.3b (2026-07-16)
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A Japanese version of this article is available: 日本語版

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