Deep, Deep Dive
What do you need to know about BNPL?
- Who can use these plans?
Most BNPL providers usually have an age requirement and conduct a few other checks before you’re eligible to use their service. For example, some BNPL providers need you to be at least 18 years old and have a job to be eligible. Other BNPL providers require you to have spent a certain amount on their platform and have been using cashless payments regularly. So depending on the BNPL provider, the requirements can be different.
- Is there a limit to how much you can spend using BNPL?
Yes. All BNPL schemes have a limit of how much you can use each month. But that depends on your provider and how much they think you can spend. It’s usually based on your past spending and payment trends.
- What happens if you miss payments?
Each BNPL provider will have its own method of treating missed payments. With Grab, if you miss payments, your account will be suspended and you won’t be able to use any of the other services Grab offers. You’ll ll have to pay off the amount you owe and an admin fee of RM10 for every missed payment (capped at 3 times) before Grab reactivates your account.Hoolah, on the other hand, will charge you a late fee every time you miss a payment. The penalty usually depends on the price of the item that you purchase. For example, for purchases below RM100, you’ll be charged RM7.50. For payments above RM100 up to RM500, the penalty is RM25. For payments more than RM500, you’ll be charged RM75.
- What can consumers do if they have an issue with the BNPL service?
Unlike credit cards and other bank loans which are regulated by the central bank, Bank Negara Malaysia, BNPL is regulated by the Ministry of Domestic Trade and Consumer Affairs (KDNHEP). If you have an issue with the BNPL service, you can contact KPDNHEP to file a complaint or seek