BNPL grew 24% in Malaysia in six months as banks tighten consumer credit across Southeast Asia

Buy now, pay later keeps growing in Southeast Asia. Malaysian officials told Parliament on 20 October that BNPL transactions rose 23.9% to 173.9 million in the first half of 2026. In the Philippines, an AB Capital commentary published on 29 October says stricter bank approval standards are steering younger borrowers toward BNPL, microloans and digital lenders.

Why demand is moving

• Banks raise approval standards, so thin-file and younger borrowers look elsewhere.
• Wallets and super-apps make small credit available at the moment of purchase.
• Regulators respond with rules on licensing and affordability checks, as Malaysia and others prepare BNPL frameworks.

What lenders in the region need

• Decisions for people with little credit history, using telco, wallet and behaviour data where it is allowed.
• Payouts and repayments through local wallets and instant payment schemes.
• Small-ticket economics: automated checks and collections, because manual work eats the margin on a small loan.
• Limits that grow with on-time payments, so good borrowers move up to larger products.

lendhero’s country pages for Malaysia, the Philippines, Indonesia and other Asian markets list the bureaus, ID checks and payment rails connected locally, and the microfinance and BNPL products cover scoring, wallet payouts and weekly schedules out of the box.

Sources: The Star (Malaysia), Philstar / AB Capital.