Latest news with #BuyNow
New Straits Times
3 days ago
- Business
- New Straits Times
Buy Now, Pay Later should not be the default way to survive
LETTERS: The first time using Buy Now, Pay Later (BNPL) felt harmless. Three easy payments for a pair of shoes. No interest, no hassle, no guilt. But that mindset is exactly what gets so many young people into trouble. From 2020 to 2025, more than 5,189 Malaysians under the age of 34 were declared bankrupt. Most of them were between 25 and 34, an age group that should be building their financial future. This is not just a statistic. It reflects a growing reality for many young adults trying to manage life's expenses with limited income and increasing pressure to spend. With BNPL so widely available and heavily promoted, it's no surprise that more people are relying on it. The recent Consumer Credit Bill passed in Parliament shows how urgent the problem has become. The new law introduces the Consumer Credit Commission to oversee BNPL and other non-bank credit providers. It's a step in the right direction, but the fact that it's needed at all speaks volumes. BNPL is appealing because it feels light — no upfront payments, interest-free instalments, and fast approval. But the catch comes later, quietly. Miss one instalment and there's a penalty. Miss a few, and the debt grows without warning. Penalties between RM10 and RM50 might not sound like much, until they keep stacking up. What began with one small item turns into four or five ongoing commitments. BNPL encourages impulse decisions. The thought process is no longer "can I afford this," but "can I split this". Bank Negara Malaysia reports that most users earn below RM3,000 a month. For many, even one missed payment affects rent, food or transport. BNPL has helped some low-income families afford essentials like baby formula and groceries, especially during difficult times. That's understandable. But it shouldn't become the default way to survive. In the first half of 2025 alone, Malaysians spent RM9.3 billion through BNPL. Some RM121 million of that is overdue. The numbers aren't slowing down. What's worrying is how normalised it has become. Not just for emergencies or needs, but for clothes, gadgets and online shopping sprees. These habits can lead to ongoing debt that feels manageable at first but becomes overwhelming over time. Regulation helps. But awareness matters more. Many still don't fully understand the risks they're taking. Educational institutions should do more to teach students about managing their money. Financial literacy is a skill that needs to be taught and cultivated early, not learned after it has become a problem. BNPL is not the enemy. But without control, it turns into a cycle that's hard to break.
The Sun
21-07-2025
- Business
- The Sun
New BNPL regulations in Malaysia to prevent debt traps
KUALA LUMPUR: The Consumer Credit Commission (CCC) is set to enforce a new regulatory framework for Buy Now, Pay Later (BNPL) schemes to safeguard consumers from excessive debt and potential bankruptcy. Deputy Finance Minister Lim Hui Ying announced the measures during the second reading of the Consumer Credit Bill 2025 in the Dewan Rakyat. Under the upcoming rules, BNPL providers must conduct debt affordability assessments before approving loans. 'This assessment ensures borrowers can repay without severe financial strain,' Lim said. The CCC will monitor compliance, ensuring companies adhere to these checks. Currently, most BNPL loans remain below bankruptcy thresholds. Transparency is another key focus. Providers must clearly disclose fees and credit terms before offering services. 'Consumers deserve full awareness of their financial commitments,' Lim added. The government also plans to enhance financial literacy to help users make informed decisions. Malaysia's BNPL market is growing fast, with 16 active providers. SPay Later, Atome, and GrabPay Later dominate, holding over 95 per cent of the market. The new regulations aim to balance industry growth with consumer protection. – Bernama
New Straits Times
21-07-2025
- Business
- New Straits Times
MPs call for separate BNPL data centre, stricter advertising rules
KUALA LUMPUR: Batang Sadong member of parliament Rodiyah Sapiee has proposed the establishment of a dedicated data centre for Buy Now, Pay Later (BNPL) services that is separate from Bank Negara Malaysia's Central Credit Reference Information System (CCRIS). The move, she said, would allow data related to BNPL to be housed in a standalone database, instead of being integrated into conventional credit systems such as CCRIS. "CCRIS is linked to major credit facilities such as housing or car loans. If BNPL data is included in this system, it could negatively affect the ability of low-income users to secure future financing," she said when debating the Consumer Credit Bill 2025 in the Dewan Rakyat. She said the BNPL data centre could be placed under the Consumer Credit Commission to enable monitoring of BNPL transactions and credit risks, without disrupting users' primary credit and repayment records. "This will preserve the effectiveness of BNPL as a microcredit instrument," she said. Meanwhile, Bachok MP Mohd Syahir Che Sulaiman called for BNPL promotions and advertisements not to be misleading, such as using phrases like "interest-free", "easy approval", or "buy now, think later". "Risk disclosures should be mandatory in all promotional materials." He said mandatory disclosure of information must also include payment simulations and explanations of late payment penalties before users sign any agreement. "The creditworthiness assessments must be tightened, especially regarding income verification. Today, even university students are increasingly trapped in outstanding BNPL debt." He said support for consumers facing financial hardship must be clearly outlined, including rescheduling of payments, moratoriums, and automatic referrals to the Credit Counselling and Debt Management Agency in critical cases. "These key points are essential to ensure that the Act, if passed, provides a balanced approach between credit accessibility and consumer protection, particularly for young people and low-income groups who are most vulnerable to financial risks." Earlier, Deputy Finance Minister Lim Hui Ying tabled the Consumer Credit Bill 2025 for its second reading. Twenty-three members of parliament are set to take part in the debate. The Consumer Credit Bill 2025 aims to strengthen consumer protection by regulating the credit industry in Malaysia, including overseeing the BNPL scheme.
Fashion United
18-07-2025
- Business
- Fashion United
UK watchdog calls for stricter regulations on buy now, pay later loans
The UK's Financial Conduct Authority (FCA) has proposed more stringent regulations for Buy Now, Pay Later (BNPL) providers with the goal of supporting borrowers in the event of financial difficulties. The organisation's rules are set to come into force when BNPL falls under the oversight of the FCA by July 2026, a shift the watchdog and debt-related charities have long campaigned for. In a statement, the FCA's deputy chief executive, Sarah Pritchard, said: 'Our regulation will help consumers navigate their financial lives, with checks on whether they can afford to repay, support when things go wrong and access the right information to make informed decisions.' The FCA said related BNPL products will come 'under proper regulation' in line with the rest of the consumer credit sector, requiring providers to ensure borrowers can afford repayments and offer backing where necessary. Among the suggestions is that of an extension of Section 75 protections, which would make BNPL firms and retailers jointly responsible for faulty or undelivered goods, placing more responsibility on merchant partners. Senior director of risk at Broadstone, Richard Pinch, said the move to tighten regulations will mean providers come under increased pressure to 'enhance creditworthiness and affordability assessments and also demonstrate robust consumer protections'. Pinch added: 'This marks a significant shift away from the relatively light-touch model BNPL firms have operated under, and places greater emphasis on affordability checks, credit reporting and fair treatment of borrowers.'
Yahoo
12-07-2025
- Business
- Yahoo
DA Davidson Initiates Coverage on LiveRamp Holdings (RAMP) Stock, Gives Buy
LiveRamp Holdings, Inc. (NYSE:RAMP) is one of the Top 10 Software and Technology Stocks to Buy Now. DA Davidson initiated coverage on the company's stock with a 'Buy' rating and a price objective of $45.00. The research firm cited the company's underappreciated network effects and growing importance as a critical intermediary in the broader data collaboration ecosystem as the critical factors for the positive outlook. Notably, the firm expects top-line growth reacceleration in FY 2027 as a potential catalyst for LiveRamp Holdings, Inc. (NYSE:RAMP)'s stock. A close-up view of a modern server rack, with its bright blinking lights. DA Davidson managed to identify numerous growth drivers for LiveRamp Holdings, Inc. (NYSE:RAMP), such as upselling opportunities with cross-media intelligence and clean room solutions, pricing redesign tailwinds, as well as continued mid-teens growth in its data marketplace. LiveRamp Holdings, Inc. (NYSE:RAMP) closed FY 2025 with 128 customers whose annualized subscription revenue surpasses $1 million as compared to 115 in the prior year, with current remaining performance obligations (CRPO) coming at $471 million, up 14% compared to the prior-year period. The company remains focused on helping customers optimize the ad spend through harnessing the power of its Data Collaboration Network and prudently managing its costs and growth investments. LiveRamp Holdings, Inc. (NYSE:RAMP) is a technology company that is engaged in operating a data collaboration platform. While we acknowledge the potential of RAMP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
