KUCHING: As BNPL (Buy Now, Pay Later) gained popularity among youth, opinions leaned more towards its advantages rather than its disadvantages.
Despite its name, BNPL is a form of lending that refers to a financing option that allows consumers to make purchases upfront but pay for them in a form of monthly installments.
The rapid growth of BNPL among youth despite raised concerns due to the fact it allow making purchases more affordable as the schemes can distort financial responsibility by creating the appearance of affordability.
In Malaysia, BNPL services from Shopee, Lazada, Grab, and Atome are widely used by Sarawakian youth.
NUR AISHAH DAROS, 26
Teacher
In my view, Buy Now, Pay Later (BNPL) can be a great option for people just starting, like those who have recently started working or students with limited income. It allows them to buy necessary items that might otherwise be too costly. BNPL works best for those who are good at managing their money and are very disciplined when deciding what they need. Nowadays, with the rise of social media trends like unboxing and influencing, many young people are easily lured into buying things they don’t need, leading to overspending. BNPL lets young folks buy things that don’t fit their budget, which can put them in financial trouble. The advantage is that young people get necessary items immediately without dipping into their emergency funds. However, I still believe up for a purchase is the most reliable way to buy things. We often don’t realize how easy it is to get hooked on spending through BNPL, so it’s wise to resist that urge early.
AMIZAN AZIM RAMLI, 26
English Teacher
In simpler terms, without strict rules overseeing Buy Now, Pay Later (BNPL) plans, young people tend to buy things on a whim more often. This happens for a few reasons: the popularity of e-wallets, changes in how we pay for things, and the fact that these new ways of paying can make purchases feel less impactful emotionally. These shifts in spending habits have led to a lot of buying, especially among recent grads, college students, and even high schoolers. Since many don’t have a steady income, they might make purchases without fully grasping the long-term effects or risks involved. Compared to traditional saving methods, BNPL lets you buy quickly and pay for them later in smaller chunks, often without extra fees if you pay back quickly. This feature can be handy for those who urgently need something but haven’t saved up enough yet. Moreover, BNPL can be helpful for people with poor credit scores or no credit history. When they can’t get a regular loan or credit card, BNPL offers a different way to borrow money with fast approval and few checks. This makes BNPL a good choice.
AZMEER BIN DAHLAN, 26
Design Engineer
I believe it encourages young people to make more impulse buys because they can buy something immediately without needing a lot of cash upfront. However, whether this is good depends on what they’re buying. If it’s something they need every day, using Buy Now Pay Later (BNPL) isn’t a good choice because it might lead to forming a bad spending habit. They should use cash for everyday items. BNPL can be useful for managing our cash flow, but it depends on what we’re purchasing. For instance, if it’s a rare and expensive item that goes over our monthly budget, using BNPL might make sense. Still, we must plan our monthly expenses carefully to ensure we can handle the BNPL instalments and keep our finances positive.
UMI SALAMAH, 31
Enumerator
The existence of the BNPL scheme has a significant potential to influence youth into limitless buying tendencies without careful planning, which can lead to unnecessary debt burdens. BNPL encourages youth to make more impulsive purchases, especially for those who enjoy shopping, as they can buy whatever they want without worrying about payments. However, this can lead to them being burdened with debt if they can’t repay. The advantages of Buy Now, Pay Later (BNPL) payments are perceived as highly accessible, offering users the chance to obtain desired items due to their comparatively flexible and lenient terms, in contrast to traditional credit options like credit cards commonly provided by banks in the past.
