Have you noticed? More and more people are choosing “Buy Now, Pay Later” (BNPL) when shopping. Whether it’s buying a new phone, furniture, courses, or even gym packages—once they see “0% interest installment, take it home now,” their decision to purchase happens in a heartbeat.
BNPL is quietly changing our shopping habits, and it’s also reshaping how small and medium enterprises (SMEs) sell.
I have a client who installs residential solar panel systems. Just two years ago, his company was small, with only about 20 employees, mainly relying on word-of-mouth and neighborhood referrals for orders. Fast forward two years, his team has grown to over 50 people, opened a branch in Johor, and now receives many orders through social media. I asked him what his secret was, and he said: “We added BNPL. Customers don’t have to pay tens of thousands upfront anymore, and our conversion rate shot up.”
Exactly. BNPL makes “enjoy now, pay later” easier and gives SMEs a powerful tool to close sales. Especially in uncertain economic times when cash is tight, BNPL acts like a “gateway” for customers—those who once hesitated due to the heavy upfront cost are now willing to commit.
According to Deputy Finance Minister Lim Hui Ying’s report in July, as of the first half of 2024, Malaysia has 6.5 million active BNPL accounts—an increase of 1.4 million from the end of last year. Transaction volume has exceeded 100 million, with a total value of RM9.3 billion, marking a 31% growth in just six months. This trend is impossible to ignore.
But we must see both sides—the benefits and the risks.
While BNPL makes spending easier, for some, it can also become a “sweet trap.” Many young consumers sign up for multiple BNPL plans, and with monthly auto deductions, they can easily overspend, overdraw their accounts, or even harm their credit scores.
A gentle reminder: BNPL is not free money—it’s just delayed payment. Paying later is still paying. Rational spending and living within your means remain the true path to financial health.
So what about SMEs? Should they ride this BNPL wave?
The answer: It depends—on your industry, your products, and your readiness.
BNPL is especially suitable for businesses with higher-ticket items or services where one-time payments feel heavy, such as:
- Furniture & appliances
- Beauty & wellness services
- Education & training programs
- Home repair & renovation
- Health management packages
- Automotive services
If SMEs in these sectors partner with reputable BNPL providers, they can not only boost conversion rates but also expand their customer base.
However, before jumping in, SMEs should prepare:
- Choose the right platform – Partner with legal, reputable BNPL providers with proper customer support.
- Manage cash flow carefully – Even if BNPL collects payment first, factor in payment cycles, processing fees, and ensure your cash flow remains smooth.
- Focus on after-sales and customer experience – Many BNPL users are first-time customers. A great experience is what drives repeat business.
One more tip: While BNPL can grow your revenue, smart business owners should also strengthen employee benefits and risk management. Offering staff health insurance, planning for retirement, and setting up business protection are crucial for long-term stability.
Just like my solar client—he expanded sales through BNPL while simultaneously building employee benefits and working with a corporate financial advisor. He told me: “It’s not that I’m luckier than others, I just prepared earlier.”
Times are changing fast, and market trends shift even faster. Instead of waiting to copy someone else’s success, start adapting and planning now.
In conclusion:
BNPL can bring you more customers—but it also comes with new responsibilities. If you want to move fast, make sure you’re moving steadily.
