The Truth About “Buy Now, Pay Later” During Malaysia’s Mega Sales
A Tempting Option at Checkout
When events like 7.7 roll in with big discounts and time-limited offers, shopping can feel urgent. You might be looking to replace a broken fridge, grab a discounted smartphone, or stock up on household needs. At checkout, a new option pops up – Buy Now Pay Later.
This feature promises an easier way to shop by allowing you to take items home now and pay for them in instalments. For many, it feels like a helpful choice when monthly budgets are tight. But is it really as simple as it looks?
Why It Feels Like the Smarter Choice
Buy Now Pay Later (BNPL) services are becoming popular on shopping platforms like Shopee (through SPayLater), Grab (with PayLater), and Atome. These services allow you to split the full payment into three or four parts, usually over a few months. For example, instead of paying RM500 at once, you might only pay RM125 every month.
However, using this option for multiple items at once can quietly stack up. You may not realise just how much you owe until several bills are due at the same time, eating into your budget for essentials like food, fuel, or school supplies.
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What You Might Not Realise
At first glance, Buy Now Pay Later services seem like a helpful solution. The option to break your payments into smaller amounts without interest may sound like a smart way to manage spending, especially during big sale seasons. However, what feels manageable at first can slowly turn into a burden if you are not careful.
If you miss a payment, there is usually a late charge. Some services may charge between RM10 to RM30 each time a payment is overdue. There are also platforms that add on processing or service fees, which might not be shown clearly when you check out. Certain instalment plans offered by retailers like Courts Malaysia include interest rates that can reach up to 18 percent annually. This means an item priced at RM1,000 could end up costing much more over time.
Unlike credit cards, most Buy Now Pay Later apps do not give a full monthly breakdown of your payments. It is easy to forget how many instalments you have left or when they are due. When multiple payments fall close together, your account balance can drop quickly. This can affect your ability to cover daily expenses like groceries, petrol or school supplies.
That is why it is important to check the payment terms properly before deciding to delay a purchase. Ask yourself whether you truly need the item and whether it fits your monthly budget. Use tools like MAE’s spending tracker to help you stay in control. Buy Now Pay Later can be useful, but only when you plan ahead and use it wisely.
What the Government Is Doing
As Buy Now Pay Later (BNPL) becomes more popular in Malaysia, the government is introducing new laws to protect consumers. One key development is the Consumer Credit Act, which is expected to create fairer and safer lending rules for BNPL providers. The goal is to make sure that users are not caught off guard by hidden charges, high late fees or unclear repayment terms.
The act will also set up a new body known as the Consumer Credit Oversight Board, or CCOB. This board will be responsible for monitoring all consumer credit activities in the country, including BNPL services. With this system in place, only registered and properly regulated providers will be allowed to offer BNPL, giving users better confidence and protection when using these services.
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Bank Negara Malaysia and the Ministry of Finance have also stepped in by issuing guidelines to make sure BNPL is used responsibly. These guidelines encourage service providers to perform proper checks on customers before approving payments, such as basic income assessments and clearer terms and conditions. This is meant to reduce the risk of users falling into financial trouble from overspending.
While the new rules are still being rolled out, they show that Malaysia is serious about protecting people who rely on BNPL. Until everything is in place, shoppers are encouraged to be extra careful by reading the fine print, avoiding impulsive purchases and using platforms that are already transparent and reputable.
How to Stay in Control
Buy Now Pay Later can be a useful option, but only if it is managed carefully. Before using it, take a step back and ask yourself a few important questions. Do you truly need the item, or are you drawn to it just because of the discount? Can you afford the full price if BNPL was not available? If the answer is no, it may be better to hold off.
A helpful tip is to use budgeting tools that keep track of your monthly spending. For example, apps like MAE by Maybank have features that let you plan and monitor your expenses. This makes it easier to see where your money is going and whether you can commit to more instalments. Avoid stacking too many BNPL purchases at once, as the payments can add up and cause stress when they are all due at the same time.
Another way to stay in control is to compare prices before making a decision. Sometimes, buying something upfront from a different store can be cheaper than using a BNPL plan with hidden costs. Always check if the seller is offering BNPL through a trusted platform. Choosing providers that are transparent about their fees and supported by banks or known financial institutions is safer.
Lastly, set your own limit. Just because you are allowed to split payments does not mean you should do it often. Try not to take on more than one or two BNPL commitments at a time. This helps you avoid unexpected bills and keeps your budget stable throughout the month.
A Smarter Way to Shop
There is nothing wrong with enjoying a sale — everyone deserves a treat now and then. But if that joy turns into financial stress, the deal may not be worth it.
So the next time you see a Buy Now Pay Later offer, take a moment. A little planning today can save you a lot of worry tomorrow.
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