The increase of buy now pay later (BNPL) services in Malaysia: Opportunities and risks

Hing, Shi Yin and Ho, Yun Ke and Teoh, Xin Tong and Thien, Ga Yan (2025) The increase of buy now pay later (BNPL) services in Malaysia: Opportunities and risks. Final Year Project, UTAR.

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Abstract

The rapid adoption of Buy Now, Pay Later (BNPL) services in Malaysia has transformed consumer purchasing behaviour, particularly among Millennials and Generation Z. While BNPL offers convenience, flexibility, and accessibility, it has also raised concerns over impulsive spending, debt accumulation, and declining financial responsibility. This study examines the relationship between four key factors such as perceived convenience, financial literacy, spending behaviour, and impulse buying tendency and the financial responsibility of BNPL users in Malaysia. A quantitative research design was employed, utilising a structured questionnaire distributed via online platforms to a sample of 400 Malaysian adults aged 18 to 60, including current and potential BNPL users. Descriptive statistics, Pearson correlation, and multiple linear regression will be employed to analyse the data, as has been done in the first two studies, to test the proposed hypotheses. The objective of the study is to provide empirically based knowledge of the influence of these behavioural and cognitive factors related to repayment discipline and debt management in the BNPL environment. This study will add to the academic literature on consumer credit behaviour, provide BNPL providers with recommendations to improve responsible use of BNPL for consumers, and provide government policy to inform a regulatory framework which promotes and protects consumer financial well-being while allowing consumers to be innovative as the BNPL environment continues to innovate in the digital credit space. Keywords: Buy Now Pay Later, Financial Literacy, Generation Z, Financial Responsibility, Repayment Discipline Subject Area: HG3691-3769 Credit. Debt. Loans

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