Malaysia Buy Now Pay Later Market Outlook to 2027F

The report provides a comprehensive analysis of the potential of BNPL industry in Malaysia. The report covers an overview and genesis of the industry, market size in terms of revenue generated.

Its market segmentations include by mode of payment, by end-users, by geography and by age group; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to publisher estimates, the Malaysia BNPL Market - which grew from approximately USD ~140 Mn in 2019 to approximately USD ~560 Mn in 2022 - is forecasted to grow further into USD ~2700 Mn opportunity by 2027F, owing to the New Government Policies, New Players in the Market and Partnership with Companies.

The Malaysia BNPL Industry has become one of the most attractive markets in Southeast Asian Region. Hence, many global BNPL Players are considering to extend their product offerings for consumers in this country.

The Rise of E-commerce and Pandemic induced trend for alternative payments have accelerated the BNPL industry in Malaysia. The market is highly driven by price-sensitive, tech-savvy and mobile-first consumers who are searching for better value and choices as well as fast delivery of services and hence, adopting BNPL services over traditional payment methods.

Key Trends by Market Segment:

• By End-User: E-commerce drives the majority of revenue for BNPL industry due to rising adoption of E-Commerce among the population
• By Age Group: The age group of 30-40 years consisting of working population with stable income have the maximum share as they are in a better position to avail credit facilities and also have a lesser risk of a default payment

Competitive Landscape

Malaysia BNPL Market is at growing stage and has a consolidated market with about 5-6 major players capturing large portion of the market. Atome is the market leader. The Malaysia BNPL Market is expected to witness a further consolidation in coming years. At present, market is composed of few large players and other small players. Not much new players are expected to come up and as a result, only Big Players would prevail in the market. Increasing Partnerships, Mergers and Acquisitions will further support the trend. Th players are competing on the basis of Active Users, Revenue, Payment Tenure, Credit Limit and Margin Charged.

Future Outlook

The Malaysia BNPL Market witnessed significant growth during the period 2019-2022, owing to rising adoption of E-Commerce and changing consumer preferences to alternative payment methods.

Growth rate of BNPL is going to increase over the period as increasing partnerships between BNPL Players and Banks, adoption of technology and widespread merchant adoption.