KUALA LUMPUR: Following the establishment of the Consumer Credit Act (CCA), it is anticipated that about 2.9 million active users of the Buy-Now-Pay-Later (BNPL) credit product, as reported through the third quarter of last year, will be protected when using the service.

The Consumer Credit Oversight Board's (CCOB) Task Force said the CCA was expected to be tabled in parliament in the second quarter of this year.

It said that the three known dominant providers in the industry of such services until the third quarter of last year were Shopee, Grab and Atome, based on the overall number and value of recorded transactions.

"The use of 'Buy Now Pay Later' witnessed double-digit growth in the third quarter of 2023 involving 52 million transactions worth RM4.3 billion," the task force told Berita Harian.

CCOB is an independent authority under the Finance Ministry that administers the CCA.

Of the 2.9 million active users of BNPL recorded, the majority of 47 per cent of users are aged between 31 and 45, while 44 per cent are aged between 21 and 30.

He said the recorded transaction values of BNPL range from RM40 to RM500, or an average of RM84, for various purchases of goods or services.

Among them are commercial, accommodation, retail, food and beverage, entertainment and transportation.

"The total outstanding balance of BNPL is relatively small, and most are paid on time with 96 per cent having no outstanding payments.

"Only 1.3 per cent delayed payments within a period of less than three months," it said.

It is learned that the use of BNPL services does not involve any guarantor compared to other local banking institutions.

https://www.nst.com.my/news/nation/2024/04/1038930/consumer-credit-act-protect-29mil-buy-now-pay-later-users