Beyond Interest-Free Financing: A Comparative Shariah and Consumer Protection Analysis of Atome and Spaylater in Malaysia’s Buy Now, Pay Later Industry

Buy Now, Pay Later or commonly known as BNPL is no longer an alien concept in Malaysia’s financial industry. There are various platforms in Malaysia that offer BNPL to the financial consumers, including but not limited to Atome, Shopee Pay Later, Grab Pay Later and the banking institution like RHB has introduced RHB Pay Later. While BNPL serves as an efficient alternative to the consumers for a ‘quick loan’, the legal standing of shariah compliance of these BNPL products are in gray area. This qualitative study that employs doctrinal and comparative legal analysis will discuss the compliance of Shariah Principle of BNPL products in Malaysia. Through a comparative analysis of certified and non-certified Shariah-compliant BNPL products, this study delineates the distinct features of each model. This study also proposes recommendations for financial institutions to ensure full compliance with Shariah principles, focusing on rectifying flaws in compliance with the Bai’ Bithaman Ajil model.

BuyNowPayLater - Bai’ Bithaman Ajil - Atome - ShopeePayLater - Shariah-compliant

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