The growing availability of “buy now, pay later” (BNPL) services is raising concerns that many users may be caught in this new debt trap in the long term. The ease of access could become the BNPL service’s biggest drawback as ease of access to credit has far-reaching consequences. While BNPL services are still nascent in Malaysia with only a handful of active providers, it has grown by leaps and bounds in Singapore over the last five years. Under the Financial Services Act (FSA) 2013, leasing, factoring or hire-purchase businesses would no longer be subject to the supervision of Bank Negara. So far, BNPL services in Malaysia are limited to online purchases.

Source: The Edge Markets March 03, 2021 04:18 UTC