The rapid increase in the use of Buy Now, Pay Later (BNPL) services in Malaysia has raised significant concerns among financial literacy experts. In 2023, BNPL transactions soared, recording about 52 million transactions worth RM4.3 billion. The average transaction value typically ranged from RM40 to RM500. However, experts like Faiz Azmi argue that BNPL services are problematic, likening them to subprime loans for financially unqualified individuals. This unrestricted spending could potentially lead consumers into severe debt traps, as these payments are not included in the traditional debt monitoring systems regulated by authorities like Bank Negara Malaysia. Consequently, users may obtain additional credit approvals under misleading financial health appearances, potentially exacerbating their financial issues.
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