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

Nur Aina Farisha Anuar Ali, Ruzian Markom and Mohd Izzat Amsyar Mohd Arif
Additional contact information
Nur Aina Farisha Anuar Ali: Centre for International Law and Siyar, Faculty of Law, Universiti Kebangsaan Malaysia
Ruzian Markom: Centre for International Law and Siyar, Faculty of Law, Universiti Kebangsaan Malaysia
Mohd Izzat Amsyar Mohd Arif: Centre for International Law and Siyar, Faculty of Law, Universiti Kebangsaan Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 6, 5557-5566

Abstract: 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.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... ssue-6/5557-5566.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... protection-analysis/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:9:y:2025:issue-6:p:5557-5566

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().