BNPL Providers Must Conduct Affordability Assessments Under Consumer Credit Act
Malaysia's upcoming Consumer Credit Act 2025 will mandate Buy Now, Pay Later (BNPL) providers to conduct affordability assessments before extending credit. This measure aims to protect consumers, especially younger generations, from over-indebtedness. The Act, overseen by the Consumer Credit Commission (CCC), will also enforce fair contract terms, transparent fees, and professional debt collection practices. BNPL providers must adhere to licensing, conduct, and governance standards, including minimum financial thresholds and fit and proper board members. The government emphasizes financial literacy to reduce reliance on BNPL schemes, which currently handle RM7.1 billion in transactions.
