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Malaysia's BNPL balances reach RM6.6 billion at end-June; arrears share at 3.3%

Published Data as of MalaysiaCreditBNPLUnsecured
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Key points

Implications for lenders

With BNPL balances at RM6.6 billion and an arrears share of 3.3%, lenders assessing Malaysian applicants may want to check BNPL commitments alongside bank and non-bank credit, particularly as low-income groups make up about 70% of active users. Providers can track arrears by origination month rather than only as a share of a fast-growing book, which can help ahead of licensing reviews by SKP.

Implications

ExecutivesBNPL balances are growing quickly, so providers entering or expanding under the new licensing regime may face closer scrutiny of affordability checks and arrears from SKP.
InvestorsA broadly stable arrears share during rapid balance growth is not yet evidence of strong credit quality; vintage-level loss data, which the parliamentary replies do not give, would be needed to judge it.
OperatorsWith most active users from low-income groups, collections capacity and early-arrears contact may need to grow in line with balances rather than with the ratio.

Facts

Balances: in a written parliamentary reply on 19 October 2026, Prime Minister and Finance Minister Anwar Ibrahim said total outstanding BNPL financing was RM6.6 billion at 30 June 2026, up from RM5.3 billion at end-March 2026 and RM3.8 billion at end-June 2025. 1 Of that, RM220.4 million was in arrears, up from RM181.0 million overdue at end-March 2026. 2 That is 3.3% of the outstanding balance, compared with an overdue share of 3.4% at end-March 2026 and 3.2% at end-June 2025. 3

Usage: active BNPL account holders numbered 9.2 million at 30 June, up 22.7% as reported; 8 million at end-March 2026. 4 The number of transactions rose 23.9%, to 173.9 million in January–June 2026 from 140.4 million in July–December 2025, 5 and their value rose 22.5%, to RM14.7 billion in January–June 2026 from RM12 billion in July–December 2025. 6 The reply said young people account for a large share of transactions, consistent with the 37.9% reported for consumers aged 30 and below in an earlier reply, 7 and cited a survey by the Consumer Credit Commission (Suruhanjaya Kredit Pengguna, SKP) finding that low-income groups make up about 70% of active users. 8

Rules: the reply restated that, under the Consumer Credit Act 2025, BNPL providers must assess creditworthiness and affordability before approving financing, may not grant or increase credit to consumers likely to struggle with repayments, and must disclose terms, fees and charges clearly. SKP is working with the Credit Counselling and Debt Management Agency (AKPK) and the Financial Education Network on financial education for young and low-income consumers.

Analysis

Time series: outstanding BNPL balances rose from RM3.8 billion at end-June 2025 9 to RM5.3 billion at end-March 2026 10 and RM6.6 billion at end-June, an increase of about 74% over the year (T&S calculation). 11 In the second quarter alone balances rose about 25% 12 while the amount in arrears rose about 22% (both T&S calculations). 13 The arrears share has stayed in a narrow band, from 3.2% 14 to 3.4% 15 and 3.3%. With balances growing this fast, a stable ratio still means the amount in arrears is rising, and a ratio measured against a fast-growing book can understate later losses because recent loans have had less time to fall behind.

Region: in Indonesia, banks' BNPL balances grew 29.10% year on year in August, 16 well below the Malaysian increase. The two figures cover different providers (Indonesian banks only, against all Malaysian BNPL providers in the reply), so the comparison shows direction rather than like-for-like growth. For context, one-month arrears on Malaysian banking-system household loans were 1.71% at end-June, 17 but that measure uses a different definition and a much larger, mostly secured book.

Counterpoints and uncertainties

The figures come from parliamentary replies, not a regular statistical release; the June 2026 reply says 'arrears' while earlier replies said 'overdue', and none states the days-past-due threshold, so the ratios may not be strictly comparable. The SKP survey's date, sample and income definition are not given. Licensing under the Consumer Credit Act 2025 may change which providers report, and a book growing this quickly can show low arrears ratios simply because many loans are new.

Key figures

  1. BNPL outstanding balance, end-June 2026: RM6.6 billion (up from RM5.3 billion at end-March 2026 and RM3.8 billion at end-June 2025). Total outstanding BNPL financing balance, all ages, Ministry of Finance parliamentary reply. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  2. BNPL arrears, end-June 2026: RM220.4 million (up from RM181.0 million overdue at end-March 2026)
    The June 2026 reply says 'arrears'; the March 2026 reply said 'overdue'. Neither reply defines the days-past-due threshold.
    . BNPL amounts in arrears, all ages, Ministry of Finance parliamentary reply. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  3. BNPL arrears share of outstanding, end-June 2026: 3.3% (compared with an overdue share of 3.4% at end-March 2026 and 3.2% at end-June 2025)
    Earlier periods were reported as 'overdue' shares; the threshold used is not stated in either reply.
    . BNPL arrears as a share of total outstanding BNPL balance, all ages, Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  4. Active BNPL account holders, end-June 2026: 9.2 million (up 22.7% as reported; 8 million at end-March 2026)
    The report gives the 22.7% increase without stating the comparison date; transaction growth in the same reply is measured against the second half of 2025.
    . Active BNPL account holders at 30 June 2026, Ministry of Finance parliamentary reply. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  5. BNPL transactions, growth on previous half-year: 23.9% (to 173.9 million in January–June 2026 from 140.4 million in July–December 2025). Growth in the number of BNPL transactions, first half of 2026 versus second half of 2025, Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  6. BNPL transaction value, growth on previous half-year: 22.5% (to RM14.7 billion in January–June 2026 from RM12 billion in July–December 2025). Growth in the value of BNPL transactions, first half of 2026 versus second half of 2025, Ministry of Finance. Malaysia, BNPL. Basis date: 30 Jun 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  7. 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)
  8. Low-income share of active BNPL users (SKP survey): about 70%
    Survey date, sample and income definition are not given in the reply.
    . Share of active BNPL users from low-income groups, Consumer Credit Commission (SKP) survey, as cited by the Finance Minister. Malaysia, BNPL. Basis date: 19 Oct 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  9. 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)
  10. 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)
  11. BNPL outstanding balance, change over a year (T&S calculation): about 74%
    T&S calculation from Ministry of Finance figures reported for end-June 2025 and end-June 2026; definitions in the two replies may differ.
    . Change in total outstanding BNPL balance, end-June 2025 to end-June 2026 (T&S calculation from MOF figures). Malaysia, BNPL. Basis date: 30 Jun 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  12. BNPL outstanding balance, change over the quarter (T&S calculation): about 25%
    T&S calculation from Ministry of Finance figures reported for end-March 2026 and end-June 2026 (rounded to RM0.1 billion).
    . Change in total outstanding BNPL balance, end-March to end-June 2026 (T&S calculation from MOF figures). Malaysia, BNPL. Basis date: 30 Jun 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  13. BNPL arrears amount, change over the quarter (T&S calculation): about 22%
    T&S calculation from Ministry of Finance figures reported for end-March 2026 and end-June 2026; the March reply said 'overdue' and the June reply 'arrears'.
    . Change in BNPL amounts overdue/in arrears, end-March to end-June 2026 (T&S calculation from MOF figures). Malaysia, BNPL. Basis date: 30 Jun 2026. Source: The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  14. 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)
  15. 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)
  16. 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)
  17. Household loans one month in arrears (MIA-1, BNM): 1.71% (down from 2.07% at end-March 2026). Household loans one month in arrears, % of outstanding household loans by value (BNM). Malaysia, banking system household loans. Basis date: 30 Jun 2026. Source: BNM Insights: Beyond Oil Prices — From Geopolitical Conflict to Financial Stability Risk (October 2026)

Sources

  1. The Star: Buy Now, Pay Later transactions surge over 20% in first half of 2026, Parliament heard (2026-10-20), reporting the Finance Minister's parliamentary reply of 19 October
  2. Malay Mail: Finance Ministry — BNPL users hit eight million as outstanding balances reach RM5.3b (2026-07-16)
  3. Malay Mail (Bernama): Finance Ministry — Malaysians under 30 rack up RM5.4b in BNPL transactions in first half of 2026 (2026-10-14)
  4. The Vibes: BNPL transactions surge past RM9 billion in H1 2025 with 40% attributed to youths (2025-08-07)
  5. BNM Insights: Beyond Oil Prices — From Geopolitical Conflict to Financial Stability Risk (October 2026)primary
  6. Bisnis.com: Outstanding pay later di bank naik hampir 30%, kredit konsumsi lesu (2026-10-05, OJK press conference)
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