Malaysia Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update

Key Insights

Increasing Adoption of BNPL Services

• Malaysia's BNPL market has grown rapidly, with over 5 million users in 2023, driven by expanding providers such as Atome, Grab PayLater, and Rely. The increasing use of BNPL services for small-ticket items such as electronics, fashion, and daily essentials reflects its versatility and appeal to younger demographics. This growth signifies consumer preference for flexible and convenient payment solutions across various spending categories.
• The expansion of Malaysia’s e-commerce market, has created a strong demand for alternative payment methods such as BNPL. With limited credit card penetration and consumers looking to avoid interest-based loans, BNPL has emerged as an attractive option for Millennials and Gen Z. Its zero-interest installment plans align with the financial needs of these demographics, bridging the gap left by traditional credit products.
• Over the next 2-4 years, BNPL is expected to solidify its position as a mainstream payment method for both high-ticket and everyday purchases in Malaysia. Providers will likely introduce innovative features such as loyalty programs and digital wallet integrations to enhance customer retention and attract new users. As adoption intensifies, the BNPL market will play a pivotal role in shaping Malaysia’s retail and financial landscape.

Expansion into Non-Traditional Sectors

• BNPL services in Malaysia are expanding into non-traditional sectors such as healthcare, education, and travel, reflecting their growing versatility. Providers such as Grab PayLater have partnered with healthcare providers to offer installment options for medical treatments, addressing affordability concerns for high-cost services. Similarly, Atome has entered the travel segment, enabling consumers to pay for travel-related expenses in manageable installments, opening new opportunities for consumers and merchants.
• Consumer demand for flexible payment options in essential and high-value services is a primary driver of BNPL’s growth beyond retail. Rising living costs and the shift toward aspirational spending have prompted consumers to seek installment-based solutions for medical treatments and tuition fees. For merchants in these sectors, BNPL offers a competitive edge by attracting cost-sensitive customers and providing accessible payment alternatives, boosting sales and customer satisfaction.
• Over the next 2-4 years, BNPL's expansion into non-traditional sectors is expected to grow, creating new revenue streams for providers and increasing consumer accessibility to essential services. However, higher-value transactions in sectors such as healthcare and education may necessitate enhanced credit assessments and risk management by BNPL providers. This diversification will likely strengthen BNPL’s role in Malaysia’s financial ecosystem, catering to consumer needs and merchant opportunities.

Rising Regulatory Oversight

• Regulatory oversight of BNPL services in Malaysia is intensifying as authorities aim to address concerns about consumer debt and transparency. Bank Negara Malaysia (BNM) has emphasized the importance of responsible lending practices, encouraging providers to reassess their business models. This regulatory push reflects a proactive approach to mitigating financial risks associated with BNPL’s rapid growth, particularly for vulnerable consumer groups.
• Concerns about over-indebtedness, especially among younger consumers, have been a significant driver of increased scrutiny. Many BNPL users may not fully understand the financial implications of deferred payments, raising the need for better transparency in terms and conditions. Additionally, Malaysia’s regulatory approach has been influenced by global trends in markets such as Singapore and Australia, where stricter regulations have been introduced to enhance consumer protection within the BNPL ecosystem.
• Over the next 2-4 years, increased regulatory oversight is expected to foster greater transparency and build consumer trust in BNPL services. Providers will likely need to implement stricter credit assessments and clearer disclosures, which could enhance the sector’s reputation. However, smaller BNPL providers may face operational challenges in meeting compliance requirements, potentially leading to market consolidation as larger players dominate the regulated environment.

Competitive Landscape and Regulatory Developments in Malaysia's Buy Now, Pay Later (BNPL) Market

Current State of the BNPL Market

• Malaysia’s BNPL market is experiencing significant expansion, this surge reflects the increasing adoption of BNPL services among Malaysian consumers, particularly driven by the widespread growth of e-commerce platforms. BNPL has become a convenient alternative payment method, enabling consumers to manage purchases through flexible installment options.
• The rapid penetration of e-commerce in Malaysia has played a critical role in driving BNPL adoption, as consumers increasingly prefer seamless and flexible payment methods for online transactions. Additionally, the demand for alternative financial solutions that cater to budget-conscious individuals is fueling the popularity of BNPL, making it a vital component of Malaysia’s evolving retail and payment landscape.

Key Players and New Entrants

• Atome: A leading BNPL provider in Malaysia, Atome has established a strong presence across various retail sectors.
• Grab PayLater: Integrated into the Grab ecosystem, Grab PayLater offers BNPL services to its extensive user base, enhancing consumer payment flexibility.
• Shopee PayLater: Shopee's BNPL service has gained significant traction, contributing to the platform's competitive edge in e-commerce.
• Rely: As a BNPL provider, Rely has expanded its services in Malaysia, catering to the growing demand for installment payment options.

Anticipated Competitive Dynamics

• The Malaysian BNPL market is expected to grow as established players seek to strengthen their positions through mergers and acquisitions. New entrants, both domestic and international, are likely to enter the market, intensifying competition. Providers may focus on diversifying their services and forming strategic partnerships to differentiate themselves in a crowded market.

Regulatory Changes Implemented

• In response to the rapid growth of BNPL schemes, Bank Negara Malaysia (BNM) has announced plans to regulate the industry under the forthcoming Consumer Credit Act (CCA). The proposed legislation aims to increase consumer protection against the risks of unfettered borrowing and will require BNPL providers to adhere to stricter lending standards.

Scope

Malaysia BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Malaysia Buy Now Pay Later Revenue Analysis

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Malaysia Buy Now Pay Later Operational KPIs & Statistics

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Malaysia BNPL by Purpose

• Convenience - Short Term Loans
• Credit - Long Term Loans

Malaysia BNPL by Business Model

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

Malaysia BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

Malaysia BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Malaysia Buy Now Pay Later Market Share Analysis by Key Players

Malaysia BNPL Analysis by Channel

• Online Channel
• POS Channel

Malaysia Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Malaysia Buy Now Pay Later in Home Improvement: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Malaysia Buy Now Pay Later in Travel: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Malaysia Buy Now Pay Later in Media and Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Malaysia Buy Now Pay Later in Services: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Malaysia Buy Now Pay Later in Automotive: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Malaysia Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Malaysia Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Malaysia Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Monthly Expense Segments

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the Buy Now Pay Later industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of BNPL Market Dynamics in Malaysia: Understand emerging opportunities and future direction of the BNPL market, key drivers, and trends. Benefit from a detailed market segmentation with 75+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape in BNPL sector with key players and market share in Malaysia. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the BNPL sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.