What the Consumer Credit Act 2025 means for buy now, pay later
The Act came into force on 1 January 2026, and BNPL providers must be licensed by the Consumer Credit Commission from 1 June 2026.
EOGSB ·
Malaysians use buy now, pay later widely, but most of it runs through large platforms. Small merchants who want to offer instalments now need a regulated provider behind them.
What changed
The Consumer Credit Act 2025 brings non-bank consumer credit, including BNPL, under a licensing regime overseen by the Consumer Credit Commission. Affordability, disclosure and conduct standards apply to the provider of the credit.
The bank-led model
A bank-led model keeps the credit with a licensed institution while giving small merchants the same checkout experience as the big platforms. The merchant is paid upfront; the bank is credit provider of record and collects the instalments.
Sources
- Bank Negara Malaysia
- New Straits Times, 2 March 2026