Investment Opportunities in Malaysia BNPL Market

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Focus On Shifting Preference Towards BNPL And Adoption of Online Payments Technology Are Major Factor Contributing Towards Development of BNPL Market in Malaysia

Adoption within Retail: With e-commerce growing faster than before the pandemic, it presents a big opportunity due to increased online payments. This coupled with the fact that BNPL giants have witnessed immense adoption within retail and the wider community is a major growth driver for BNPL industry in the region.

Young Population: A key reason for rapid growth of BNPL in Malaysia is the presence of tech-savvy, price-sensitive and mobile-first consumers. Also, they are searching for better values and choices and fast delivery services and hence, adopting for BNPL services.

Malaysia BNPL Market

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Lack of BNPL Specific Regulations: When it comes to the industry as a whole it provides access to credit lines and there is nothing that stops the consumer from overspending which obviously leads to a debt trap and is not monitored or backed by any financial regulator. So, it is one of the major challenges faced as it can encourage people to spend more than they can afford. Therefore, rules and regulations specific to BNPL industry should be introduced by the government of Malaysia in order to control these issues and regulate the conduct of credit activities.

Default Risk by Consumers: BNPL service issuers borne a risk of not being able to recover loan amounts that consumers fail to pay on time. Although there is a carry forward charge attached with the late amounts, it might keep on adding on consumer’s part. Amid the fast growth of BNPL market, regulators are concerned about this rising number of debts and risk to consumers. With unthoughtful purchases increasing due unsecure credit risk assessment with these methods.

Analysts at Ken Research in their latest publication “Malaysia BNPL Market Outlook to 2027F- Driven by Digitalization, Rising Tech-Savvy Population, Increasing M&A Deals, Partnerships between BNPL players.” by Ken Research observed that BNPL Market is an emergent BNPL Market in Malaysia at a growing stage from the economic crisis after pandemic. The Entry of Global BNPL Players, Strategic Partnerships along with government initiatives is expected to contribute to the market growth over the forecast period. The market is expected to grow at a 38.5% CAGR during 2022-2027F owing to the rise in economy of the country, increasing young population and new government policies.

Key Segments Covered in the report:

Malaysia BNPL Market