DUBLIN--(BUSINESS WIRE)--The "Malaysia Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to ResearchAndMarkets.com's offering.
BNPL payments are expected to grow by 78.7% on an annual basis to reach US$1,117.3 million in 2022.
Medium to long term growth story of BNPL industry in Malaysia remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 35.4% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$625.3 million in 2021 to reach US$6,884.7 million by 2028.
Malaysian consumers have increasingly shifted their consumption behavior online after going through various pandemic-related restrictions over the last two years. Adoption of digital payment methods, including buy now pay later, has surged significantly in the country, as the payment method offered consumers higher purchasing power and easier access to credit.
The digital payment method is projected to go mainstream over the next three to four years on the back of growing adoption among merchants and consumers. In Malaysia, innovations like a BNPL service on credit cards and insurance have already emerged in the market. There have been several instances where established banks partner with pure-play BNPL players to meet consumer expectations.
While the BNPL market is projected to record robust growth over the next three to four years, Bank Negara Malaysia, along with the Ministry of Finance and Securities Commission Malaysia, is working to enact the Consumer Credit Act in 2022. Notably, the act aims to strengthen regulatory arrangements for all consumer credit activities, including BNPL services offered by non-banking institutions.
New players are emerging in the competitive BNPL landscape in Malaysia
Amid the projected growth in the Malaysian BNPL market over the next few years, new players are entering the market intending to gain market share in the already competitive but growing BNPL industry. For instance,
In July 2022, Ablr, a new BNPL service, announced that the platform had gone live in Malaysia. Using the Ablr BNPL service, consumers can pay for healthcare expenses, music classes, travel experiences, and home decor products, among other things. Notably, to shop using Ablr, consumers must scan QR codes or pay using a payment link.
In July 2022, ShopBack, one of the leading Singapore-based rewards platforms, announced the launch of its BNPL product in Malaysia and Singapore. The BNPL feature integrated into the ShopBack app allows users to pay at over 4,000 online and in-store merchants in Malaysia and Singapore. Notably, ShopBack PayLater, the BNPL feature, integrates the services of hoolah, which the firm acquired in 2021.
The entry of these new players into the BNPL sector is expected to further drive competition and innovation in Malaysia. This will subsequently assist the market growth from the short to medium-term perspective.
Traditional banks are partnering with pure-play BNPL providers to offer deferred payment services to their customers in Malaysia
While traditional banking institutions were previously hesitant to launch a BNPL feature for their customers, they are now either partnering with pure-play BNPL providers or introducing their service in Malaysia.
In July 2022, CIMB Bank Bhd announced that the firm had entered into a strategic collaboration with Fave, a Singapore-based BNPL provider, to offer a mobile-first BNPL service to its customers in Malaysia. Under the collaboration, over 8.4 million CIMB Bank's customers can now access the BNPL payment method offered by Fave to make purchases at more than 15,000 merchant locations. The launch of the BNPL feature comes amid the changing consumer spending and shopping behaviors.
Over the next three to four years, the publisher expects more banking institutions to launch BNPL services for their customers in Malaysia, either through strategic collaboration with BNPL providers or by introducing their own service.
BNPL providers are targeting different industries to drive adoption of their services and transaction volume in Malaysia
During the global pandemic outbreak, BNPL providers aggressively partnered with e-commerce marketplaces to drive their adoption among consumers globally. While BNPL firms continue to partner with e-commerce platforms, they also target other industries to drive their transaction volume in Malaysia.
In April 2022, Pace, one of the leading BNPL players in the Southeast Asian market, announced that the firm had entered into a partnership with Shangri-La Hotels and Resorts to introduce the BNPL payment method at participating hotels in Malaysia. This will allow travelers to split their payments over three months at no additional cost.
In March 2022, hoolah, another Southeast Asian BNPL firm, announced that the firm had partnered with Malaysian Aviation Group (MAG), the parent firm of Malaysia Airlines. Under the partnership, hoolah will offer travelers in Malaysia, Singapore, and Hong Kong, opting for Malaysia Airlines to pay for their flight tickets in installments at no extra cost.
The global travel and tourism industry is expected to post a strong growth recovery in 2022. Consequently, these strategic partnerships between BNPL providers and businesses in the travel and tourism industry could mean strong growth in transaction value and volume amid the growing pent-up travel demand. The publisher expects more such strategic collaborations from the short to medium-term perspective in Malaysia.
Scope
Malaysia BNPL Market Size and Spending Pattern
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Malaysia Buy Now Pay Later Operational KPIs
- Buy Now Pay Later Revenues, 2019 - 2028
- Buy Now Pay Later Share by Revenue Segments
- Buy Now Pay Later Merchant Commission, 2019 - 2028
- Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
- Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
- Buy Now Pay Later Accounts, 2019 - 2028
- Buy Now Pay Later Bad Debt, 2019 - 2028
Malaysia Buy Now Pay Later Market Share Analysis by Key Players (Atome, Hoolah, Grab, Pine Labs All Tap, Pay Later)
Malaysia Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
- Online Channel
- POS Channel
Malaysia Buy Now Pay Later in Retail Shopping: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Malaysia Buy Now Pay Later in Home Improvement: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Malaysia Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Malaysia Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Malaysia Buy Now Pay Later in Other: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Malaysia Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
- Buy Now Pay Later Sales Uplift by Product Category
- Buy Now Pay Later Spend Share by Age Group
- Buy Now Pay Later Gross Merchandise Share by Income
- Buy Now Pay Later Gross Merchandise Value Share by Gender
- Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis
Companies Mentioned
- Atome
- Rely
- Split
- Grab
- Pay Later
- hoolah
- HSBC bank
- AFFIN Bank
- CIMB Bank
- Am Bank
- RHB Bank
- IOU Pay
For more information about this report visit https://www.researchandmarkets.com/r/vo6zky
