Abstract Buy Now Pay Later (BNPL) has been lauded as one of the latest global trends in smart ‘ways to pay’, riding on the wave of digital disruption that has gained traction internationally. At the same time, concerns have been raised over harm to vulnerable consumers becoming mired in unanticipated debt. This article facilitates a deeper understanding of the phenomenon from a bottom-up perspective through an analysis of empirical data comprising a survey of 400 consumers, interviews with consumer advocates and BNPL users, and a survey of Malaysian BNPL providers’ websites. The article explores how digitalisation, payment by instalments, and providers’ advertising strategies can collectively mask risks for unsuspecting consumers. Insights from the analysis are used to inform proposals to strengthen the effectiveness of the emerging Malaysian consumer credit framework. As the first country to introduce consumer credit legislation in the ASEAN region, Malaysia’s burgeoning framework provides a model for other ASEAN Member States. In addition to targeted measures aimed at empowering consumer decision-making, there is an urgent need to address the problem of poverty to avoid unintended consequences. The empirical analysis is valuable for other emerging economies seeking to strengthen protections for credit consumers.
Vivien Chen (2025) studied this question.