PETALING JAYA: Buy Now, Pay Later (BNPL) services are helping businesses increase sales and manage cash flow, but industry leaders warn that the model can also cut into profit margins and carry risks for both merchants and consumers. Small and Medium Enterprises Association (Samenta) president Datuk William Ng said the BNPL model is really a double-edged sword for SMEs. “For many SMEs, BNPL helps win the initial sale by reducing the barrier to entry for consu­mers, effectively lowering cart abandonment rates. Providers are charging commissions ranging from 4% to 8%, but most merchants are willing to pay to receive their funds upfront,” he said. Chin shared that some busines­ses will likely see a drop in sales if they were to stop offering BNPL.

Source: The Star March 17, 2026 03:40 UTC