KUALA LUMPUR – Emergence of the Buy Now, Pay Later (BNPL) system in Malaysia during the COVID-19 pandemic is regarded as a timely and indispensable tool with which businesses can maintain sustainable growth in this trying pandemic period.
Dylan Tan, co-founder and chief executive officer of Split, an omnichannel BNPL fintech provider, said it is not surprising to see many retailers in Malaysia adopting this more convenient, alternative payment method.
“By allowing customers to make purchases and paying them off over time in interest-free instalments, BNPL enables consumers to manage their budgets when making purchases.
“It also opens up a massive new segment of customers for merchants, particularly young millennials with fixed budgets and those who do not own credit cards,” he said in a statement on July 6.
Additionally, Tan said BNPL has the potential to transform merchants into omnichannel sellers, allowing them to expand their outreach methods to a wider audience via online channels that they may not have previously considered or been able to access.
“Furthermore, a payment method like BNPL addresses common consumer concerns with instalments, the most common of which being the worry of ending up paying more, unwanted penalties if they are unable to make the payments on time, indebtedness, and others,” he added.