Legal Issues of Buy Now Pay Later (BNPL) Scheme in Malaysia

DOI

10.2991/978-94-6463-352-8_16How to use a DOI?

Keywords

Legal; Non-Banking Credit Services; BNPL; Malaysia

Abstract

The advancement of technology has transformed the atmosphere of the global financial services sector. Financial technology, commonly known as Fintech, is widely adopted globally, including in Malaysia. The adoption of Fintech in the consumer credit landscape is no exception. The Buy Now Pay Later (BNPL) scheme is one example of the latest Fintech innovation gaining popularity amongst consumers. BNPL scheme falls under the category of non-banking credit services providing financial services to a broader segment of consumers, especially those without access to traditional banking services. The increase in consumers opting for the BNPL scheme is due to economic vulnerability and less rigorous requirements and procedures. This situation is due to the compelling need of consumers to make ends meet as most consumers' income has been affected due to the pandemic. Despite gaining popularity among consumers, the scheme poses some legal issues in its implementation. These legal issues may lead to a legal risk to vulnerable consumers, especially in fear of unfair practices and absence of standard protection of consumers. This paper employs qualitative methods to analyse relevant legal references such as legislation, guidelines, journal articles, and other authoritative and reliable references related to the topic. This research applies content analysis to derive the findings related to the topic. The findings of this research conclude that the BNPL scheme is currently unregulated. However, the government through the Ministry of Finance and other existing regulators has initiated the development of a legal and regulatory framework for regulating the BNPL scheme in Malaysia.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ulfah Mansurah Zainudin
AU  - Ahmad Azam Othman
PY  - 2024
DA  - 2024/01/10
TI  - Legal Issues of Buy Now Pay Later (BNPL) Scheme in Malaysia
BT  - Proceedings of the 12th UUM International Legal Conference 2023 (UUMILC 2023)
PB  - Atlantis Press
SP  - 206
EP  - 220
SN  - 2667-128X
UR  - https://doi.org/10.2991/978-94-6463-352-8_16
DO  - 10.2991/978-94-6463-352-8_16
ID  - Zainudin2024
ER  -