BNPL is a payment scheme that lets you pay for some purchases in instalments over a few months and usually at 0% interest. While most of these plans are only available for online purchases, some physical shops also let you BNPL.

Some examples of BNPL providers are Atome, Grab PayLater and Hoolah.

You can use BNPL for things like groceries right up to buying a TV. For example, on Grab you can use BNPL for ordering food, to shop at their mart or at some of the sellers on the app. If you’re looking to make a bigger purchase online or even in-store, like buying a computer, some merchants also allow you to use Grab Paylater or Hoolah as a payment method.

How does it work?

BNPL plans allow you to buy things without having to pay the full amount up front. Instead, your payment is split equally across 3 – 6 monthly instalments. You will have to pay the first instalment up front and the remainder over the following months.

The amount of your monthly instalments will depend on the monthly instalment period offered by the BNPL providers (Different providers offer different monthly instalment periods).

When you sign up for BNPL, you’ll have to link your account to your online bank account, a credit card or a debit card. So, your BNPL account will usually auto-debit the monthly instalments you owe from your linked account or card.

As long as you pay your instalments on time and in full every month, you won’t be charged any interest.

If you miss your payments, you’ll have to pay a penalty. Usually, penalties range from around RM10-RM75 but this will depend on your BNPL provider. Most providers will charge you a penalty each time you miss a payment. Your BNPL account will also be suspended and you won’t be able to use it again until you’ve paid off the amount you owe and cleared all the penalties.