Nabil Luqman

0f9d2dd4f71434084e2b6094de1865e23abb37bb9f28ca51feeabee679ec9be2

Money

Shopee

Split

BNPL

e-Commerce

Atome

FavePay Later

hoolah

Grab PayLater

SpayLater

If its one thing the pandemic has done, it&rsquo;s increased the retail price of many of our daily necessary items.
But with the pandemic, we had also been thankful to have a scheme called Buy Now Pay Later (BNPL) which is one of the largest service sectors in the current market.
<img src="https://m.buro247.my/images/CR-BNPL-Malaysia.gif" />
&nbsp;
According to a report by Malay Mail, the BNPL payment could double on an annual basis to reach RM2.65 billion in 2022.
One of the key reasons behind this is due to the rapid growth of credit cards appealing. But, unlike credit cards, if you were to use the BNPL your credit history is not vetted.
How does BNPL work?
The system is pretty simple. Essentially consumers who use this on e-commerce platforms are just breaking the payments into installments.
Unlike credit cards which require requires stringent requirements, everyone can easily get BNPL. Most payment schemes will allow anyone to apply for it no matter how big the payment is.
For one to sign up for BNPL, all you have to do is sign up, fill up your personal details and you&rsquo;re good to go. Atome Singapore and Malaysia&rsquo;s general manager Trasy Lou-Walsh says that they were thinking of ways to disrupt the credit card industry with this payment scheme.
One issue is that there&rsquo;s lack of regulation which has sparked concern about the risk of bad debt and default, however that hasn&rsquo;t stopped more players joining in the competition as there are now dozens of BNPL players, banks and establish services in the industry.
Who are the BNPL platforms in Malaysia and how do they differ?
1) Atome
<img src="https://cdn1.myc.com.my/image/upload/v1656924569/unsigned/iqp7txigxm8lm8dc1h5c.png" />
&nbsp;
- Presence in Malaysia, Singapore, Hong Kong and Mainland China. - Offer over 2,000 retailers online and in store merchants. - Uses AI proprietary credit scores according to what you can and cannot afford. - Users need to be 18 and above - Spend a minimum of RM10 - Spreads across 3- months installments - Users can spend up to RM1,500 (non-credit card users) and RM5,000 (credit card users)
2) FavePay Later
<img src="https://cdn1.myc.com.my/image/upload/v1656924593/unsigned/iu0z2glgtfoe4wdmbvra.webp" />
&nbsp;
-Fintech platform with smart payment applications. - Offers merchant a &ldquo;virtual compound&rdquo; and free advertising for merchants. - Installments up to 3- months based off &ldquo;user assessment&rdquo;. - 1.5% interest rate charged for every late payment after seven days.
3) hoolah
<img src="https://cdn1.myc.com.my/image/upload/v1656924613/unsigned/ev1zkhs0vrdjcwuppzjt.png" />
&nbsp;
- Highly popular in Singapore - Easy to use. - 3 &ndash; month long installments with no interest fee. - Penalties of RM16 for items below RM300, RM47 for items below RM3,000 and RM95 for item above RM3000. 
4) Grab PayLater 
<img src="https://cdn1.myc.com.my/image/upload/v1656924663/unsigned/ck1kwbbzbkxms0gxvms6.webp" />
&nbsp;
- Biggest platform in Malaysia - Have installments of 4 payments or paying the entire sum a month later - Can be used on food, e-hailing rides, groceries and online merchant partners. - More strict than other BNPL platforms - Users need to be 21 and above, is a &ldquo;Silver Tier&rdquo; member with 200 GrabReward points - Must have a minimum of three transactions a month to unlock feature. - Accounts will be frozen if installments are being paid late and users will be given a RM10 penalty to reactivate account.
5) Shopee SpayLater
<img src="https://cdn1.myc.com.my/image/upload/v1656924696/unsigned/kcpni8rtf2d22znmj19j.jpg" />
&nbsp;
- Still unknown to most due to late coming in the industry. - Risk filter of platform not too known but has an assessing credit score system. - Offers repayment methods and installments across 2, 3 or 6 months. - Interest free installments but has a 1.25 % processing fee. - 1.5% transaction penalty for late payments
6) Split
<img src="https://cdn1.myc.com.my/image/upload/v1656924724/unsigned/gcbv6z00dq6ucn4sp9yj.png" />
&nbsp;
- Claims to be first &ldquo;Shariah-compliant&rdquo; BNPL platform in Malaysia - Does not charge large late payment penalties. - Works out payment plan with user if they can&rsquo;t pay on time. - Applications for plan strict and has a high of rejections. - 3-month interest free. - Charges 10% to partner stores depending on monthly sales.
If I had a choice, I&rsquo;d personally use either Fave or Atome due to how convenient it is and how much coverage and offers they have. Grab is great but they have a bit toom many criteria&rsquo;s to fill. So, which one is your preferred BNPL app? Let us know in the comments!
&nbsp;
*Sources: Visual and Reference Credits to Social Media, Malay Mail &amp; various cross references for context.
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Who would of thought we had this many apps for breaking up payments!

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Want That New Stuff But Can't Pay The Full Price? Here Are Some 'Buy Now, Pay Later' Apps

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c6e5412e94f35f5e45d8d645b31f06c7e7692356c43e40dffb5b8af1b8e8c3a9

Rohto

4a748b89ff3ed827c2f616757f44645a494284ce781ca71dce7bf93343f62cd4

Want That New Stuff But Can't Pay The Full Price? Here Are Some 'Buy Now, Pay Later' Apps

Who would of thought we had this many apps for breaking up payments!

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