KUALA LUMPUR (May 21): A recent survey by Shopee's buy now, pay later (BNPL) service (SPayLater) shows that 81% of over 40,000 Malaysians use BNPL to handle financial shocks, mainly for essentials like baby formula, medical costs, repairs and insurance.

The survey shows that many Malaysians are using BNPL not for luxury purchases but to manage cash flow (57%), bridge finances until payday (46%) or cover emergencies (32%).

The findings also highlight a worrying trend: 59% say credit is essential for daily necessities, while 55% of users have no access to credit outside of BNPL.

Many users also want SPayLater to be accepted at more places, especially for medical services, groceries and household essentials.

42% of users said SPayLater gave them better control over their finances and 95% said it helped them manage debt. However, 2% felt anxious about depending on short-term credit for basic needs.

Many users report turning away from pawnshops, loan sharks or borrowing from friends since using SPayLater.

Concerns over financial vulnerability are further underlined by the 12% who say banks don’t meet their credit needs and 18% who are either unbanked or choose not to use banks.

A separate survey by the Consumer Credit Oversight Board (CCOB) task force (conducted in August to September 2024) found that 73% of BNPL users in Malaysia are low-income earners (earning under RM5,000 a month) and lack access to other personal financing options. The survey covered 21,070 active BNPL users.

As of the end of 2024, there were 5.1 million active BNPL users — those who made at least one transaction in the past year. BNPL made up just 0.2% of total household debt. Overdue amounts and late-paying customers have dropped from highs of 6% and 5.8% to 2.9% and 3.4% respectively.