Buy now, pay later has become the new spending pattern and the National Bank is worried that people will overspend and asked the Ministry of Finance to draft the Consumer Credit Bill.
Previously, only credit card holders could enjoy the Buy Now Pay Later benefit, but now e-commerce and e-wallet platforms are also offering Buy Now Pay Later services, which allow users to buy goods first and then pay their bills in installments.
The National Bank is concerned that the Buy Now Pay Later trend will cause consumers to overspend and eventually become unable to afford their debts and affect their credit scores. According to Bank Negara, the Buy Now Pay Later trend has started in many foreign countries and now it has arrived in Malaysia.
Bank Negara believes that buy now pay later will become the new consumer trend in Malaysia in the future and therefore urged the Ministry of Finance to draft a new law to regulate buy now pay later.
The public is urged to understand the payment terms before using the pay-as-you-go service to avoid high interest charges for late payment. Currently Shopee, Lazada and Grab are all offering pay-as-you-go services.
