Buy Now Pay Later (BNPL) in Malaysia: A Shariah and Consumer Protection Analysis

This study evaluates Buy Now Pay Later (BNPL) services in Malaysia to determine whether it is Shariah-compliant and align with consumer protection laws. It analyzes the structure and contractual terms of BNPL services with Shariah legal standards and Maqasid Shariah, to assess how these services protect consumers. A doctrinal legal research methodology is applied, focusing on statutory documents, Shariah principles, and the terms of chosen BNPL services such as Atome, Grab PayLater, and Shopee PayLater—the content anaylsis from legal texts, academic articles, and regulatory guidelines. The findings of the study showed only one BNPL service aligns with Shariah principles through a certified Bai’ Bithaman Ajil model and proper governance. The other two raise compliance concerns due to a lack of Shariah oversight and mirror conventional credit.