Are We Broke? 9.2 Million M’sians Now Use BNPL, Nearly 40% of Transactions Come From Gen Z & Millennials

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In an era where “checkout in 4 interest-free installments” is available at almost every online store, more and more Malaysians appear to be leaning on credit to fund their daily purchases.

According to Berita Harian, data released by the Ministry of Finance (MoF) in a written parliamentary response reveals that the number of active Buy Now, Pay Later (BNPL) account holders in Malaysia has surged to 9.2 million users as of June 30, 2026, a 22.7% increase compared to the previous period.

A massive 23.9% jump in transactions

The ministry was responding to a question from Bachok MP Mohd Syahir Che Sulaiman regarding growing debt risks, MoF highlighted data monitored by the Consumer Credit Commission (SKP). During the first half of 2026, the volume of BNPL transactions spiked by 23.9% to 173.9 million transactions, up from 140.4 million recorded in the second half of 2025. Correspondingly, the total value of these transactions grew 22.5% to hit a staggering RM14.7 billion.

Total outstanding BNPL balances currently stand at RM6.6 billion. While total unpaid balances remain relatively contained at RM220.4 million (3.3% of the total outstanding debt), the demographic makeup of BNPL users has raised eye-opening questions about modern spending habits.

Young adults and low-income earners dominate BNPL usage

According to SKP surveys cited by the ministry, young adults (Gen-Z and Millennials) account for nearly 40% of all BNPL transactions. Furthermore, low-income earners make up approximately 70% of total active BNPL users in the country.

The convenience of splitting payments for fashion, gadgets, and everyday goods has made BNPL a go-to financial cushion, but it also carries the subtle risk of lifestyle inflation and over-indebtedness for younger demographics.

Guardrails in place to prevent debt traps

To protect credit users from taking on debt beyond their means, the SKP now mandates that BNPL providers carry out proper credit eligibility and affordability assessments before approving any financing.

Providers are also required to maintain full transparency regarding fees, terms, and charges, while ensuring marketing campaigns do not mislead buyers. The commission is also collaborating with the Credit Counselling and Debt Management Agency (AKPK) and the Financial Education Network (FEN) to boost financial literacy among consumers.

Are you using BNPL services responsibly, or do you find the temptation to overspend a little too real? Let us know in the comments below!

Also read: Got Bitten By Your Own Cat? M’sians May Be Eligible For SOCSO Claims Covering Medical Bills & Paid Medical Leave

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