BNPL Service Providers Urged To Practise Self-regulation

SHAH ALAM, July 24 (Bernama) -- Online shopping platforms offering ‘Buy Now Pay Later’ (BNPL) services have been urged to self-regulate to ensure consumer rights remain protected.

Deputy Minister of Domestic Trade and Cost of Living Datuk Dr Fuziah Salleh said the approach was needed pending the introduction of a more comprehensive law.

“My advice to platform owners is to ensure their platforms are used responsibly and with integrity, as the e-commerce law has yet to be tabled in Parliament.

“For now, let us self-regulate, protect consumers, and foster a positive culture,” she said after the Closing Ceremony of the TikTok Shop Summit and the 2025  Buy Malaysian Goods Campaign here today.

Deputy Finance Minister Lim Hui Ying was previously reported to have said that BNPL transactions increased to 102.6 million in the first half of this year, compared with 83.8 million in the second half of 2024.

According to Lim, the surge in BNPL transactions had exposed consumers, particularly low-income earners and those with low financial literacy, to the risk of unmanageable debts.

Meanwhile, commenting on the one-off RM100 cash aid for citizens aged 18 and above, Fuziah said it can only be used at designated outlets under the Sumbangan Asas Rahmah (SARA) programme to prevent misuse.

She said enforcement would be carried out continuously to prevent price hikes at the outlets involved.

“Aid recipients must use their identity card to make purchases at any of the 4,100 designated outlets nationwide and are only allowed to buy listed items to prevent misuse of the funds.

“There were cases where (aid recipients) bought cigarettes instead of baby formula or nappies, so this measure helps us ensure it is spent on essential items,” she said.

--BERNAMA