KUALA LUMPUR, March 25 – Consumers should not view “buy now, pay later” (BNPL) services as long-term financial solutions, the Credit Counselling and Debt Management Agency (AKPK) cautioned.
AKPK’s Education and Outreach general manager, Nor Fazleen Zakaria, reportedly said while BNPL may seem harmless, it can have lasting effects on financial health.
“While it can be useful in certain situations, we encourage consumers to pause and reflect: do you really need that item right now?
“A little financial discipline goes a long way in building long-term stability,” she was quoted saying by the New Straits Times.
Nor Fazleen advised consumers to consider whether they could afford a purchase without borrowing before committing to BNPL.
“If the answer is no, it might be time to hit pause – and think before you click,” she said.
She noted that while BNPL could ease financial pressure at times, it should never replace proper financial planning.
“Saving in advance for big purchases, using high-interest savings accounts, and tracking your monthly spending can help you avoid the stress of debt later,” she said.
She warned that excessive reliance on BNPL could lead to accumulated debt, damaged credit scores, and financial stress affecting mental health.
“It’s a risk that can grow quietly but quickly. True financial wellbeing comes from building savings, controlling spending, and investing for the future, not relying on temporary credit solutions,” she said.
Yesterday, Bank Negara Malaysia (BNM) said BNPL activities have grown rapidly, although the total outstanding BNPL debt remained a small proportion of overall household debt at RM2.8 billion or 0.2 per cent as of December 2024.
In its Financial Stability Review for the second half of 2024 (2H 2024), BNM noted that the total amount of purchases made via BNPL — both in terms of transaction volume and value — increased to 83.8 million transactions and RM7.1 billion, respectively, in 2H 2024.
