KUALA LUMPUR, July 12 — The credit exposure, or total outstanding balance, of the Buy Now Pay Later (BNPL) industry stood at RM1.42 billion in the first quarter, an increase of 34 per cent from the end of 2023.
BNPL accounted for 0.07 per cent of total household debt at the end of 2023.
“Up to 3.8 per cent of active BNPL account holders missed their payments and were recorded as overdue at the end of 1Q 2024, compared with 5.8 per cent at the end of 1Q 2023,” the Consumer Credit Oversight Board task force said in its report today.
The report revealed that a majority of the 3.7 million BNPL account holders are working adults aged between 21 and 45 years old.
More than 700,000 merchants accept BNPL, with a strong presence in three sectors — food and restaurants, retail, and transportation.
“Most merchants operate online, but the proportion of physical or in-store merchants has increased, reaching 12 per cent in 1Q 2024,” it said.
— Bernama
