Legal issues of Buy Now Pay Later (BNPL) scheme in Malaysia

Zainudin, Ulfah Mansurah and Othman, Ahmad Azam (2024) Legal issues of Buy Now Pay Later (BNPL) scheme in Malaysia. In: 12th UUM International Legal Conference 2023 (UUMILC 2023), 23rd - 24th August 2023, Virtual Conference.

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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 popular-ity 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 frame-work for regulating the BNPL scheme in Malaysia.

Item Type:	Proceeding Paper (Plenary Papers)
Additional Information:	1643/119305
Uncontrolled Keywords:	Legal, Non-Banking Credit Services, BNPL, Malaysia
Subjects:	K Law > K Law (General) K Law > K1001 Commercial Law
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws
Depositing User:	Dr Ahmad Azam Othman
Date Deposited:	12 Feb 2025 16:20
Last Modified:	12 Feb 2025 16:21
URI:	http://irep.iium.edu.my/id/eprint/119305

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