By Danial Dzulkifly
KUALA LUMPUR, July 21 — Puchong MP Yeo Bee Yin today raised concerns that unchecked buy now, pay later (BNPL) services could lead to higher consumer costs and create monopolies by major providers, unless proper regulation is introduced.
While debating the second reading of the Consumer Credit Bill 2025 in the Dewan Rakyat today, she pointed out that BNPL providers charge merchant fees of between 5 and 6 per cent, a significant jump from the 1.5 to 3.5 per cent typically imposed by credit card companies and online payment gateways.
While these charges are absorbed by retailers, Yeo said they are passed on to all consumers regardless of payment method.
“This means those paying with cash are indirectly subsidising BNPL users, even if they don’t choose that service,” she said.
BNPL usage in Malaysia has surged, with Bank Negara Malaysia recording RM9.3 billion in transactions in the first half of 2024, a threefold increase from RM2.7 billion in the same period last year.
Active BNPL accounts have risen to 6.5 million, with over 100 million transactions logged in just six months.
[caption id="attachment_408523" align="aligncenter" width="1024"]
Puchong MP Yeo Bee Yin speaks at the Global Outstanding Confucian Entrepreneurs Forum & Global Chinese Brands Ceremony at Marriott Putrajaya on May 28, 2025. — Picture via FACEBOOK/YEO BEE YIN[/caption]
Yeo warned that the growing dominance of a handful of BNPL players, including those that recently increased merchant fees, may give rise to monopolising behaviour.
“When companies hold a large market share and enjoy high user adoption, they can behave like monopolies,” she said, adding that the sector already has high barriers to entry due to cost and technological requirements.
She urged the government to introduce price controls on merchant fees under the proposed Consumer Credit Act to ensure competitive practices.
The former technology minister also flagged growing concerns over household debt, cautioning that aggressive expansion by BNPL providers could lead to irresponsible lending.
“There is a risk of providers relaxing credit standards in order to dominate the market, which could expose users to long-term financial instability,” she said.
To address this, Yeo proposed strengthening the mandate of the forthcoming Consumer Credit Commission to ensure robust oversight of the BNPL sector and uphold responsible lending standards.
She also called for financial literacy education in schools, alongside a national awareness campaign on personal finance, credit management, and debt.
“Financial literacy is a life skill. It must be embedded in our education system,” Yeo said.
