How is BNPL regulated in Malaysia?
The Consumer Credit Act 2025 came into force on March 1, 2026. BNPL providers must be licensed by the new Consumer Credit Commission, with licensing from June 1, 2026 and a six-month transition. The market had 7.5 million active accounts at the end of 2025.
In detail
Through the Consumer Credit Act 2025, which came into force on March 1, 2026. The Act created the Consumer Credit Commission, which licenses buy now, pay later providers. Licensing started on June 1, 2026, with a six-month transition, and affordability checks apply to credit limits above RM1,000.
A large, concentrated market
BNPL has grown quickly in Malaysia, driven by e-commerce platforms. According to Bank Negara Malaysia, it reached 140.3 million transactions worth RM11.9 billion in the second half of 2025, with 7.5 million active accounts at year end. Growth continued in the first half of 2026, with 172.1 million transactions worth RM14.7 billion.
Out of 16 providers, SPayLater holds 48.9% of the market, TikTok PayLater 26.2%, Atome 17.3% and PayLater by Grab 4.5%. Card installment plans from banks remain common for larger purchases.
What it means for payment operators
For operators serving Malaysian merchants, regulation means working only with licensed providers and expecting affordability checks on larger limits. Connecting licensed BNPL providers as payment methods, and activating them per merchant, lets you follow the new rules without each merchant handling separate integrations.