TikTok is ready to offer BNPL Atome service integration before, allowing users to make purchases and then make installments to pay in installments. Not only that, now TikTok Malaysia has also begun introducing the TikTok PayLater service in stages to Malaysian users. The review found that this feature has been activated since October 28, 2024 for Malaysian users.
TikTok PayLater is an installment payment option that provides access to a value of up to RM10,000. Users can also choose to repay within a period of up to 12 months.
A number of local users have begun to receive the option to apply for TikTok PayLater access. Users will then need to provide information such as employment and monthly income, which will then determine the credit value offered by TikTok PayLater.
When making a payment using TikTok PayLater, it also displays the monthly payment value as well as the additional fee cost that comes with it. No charges are seen to be charged for full later payments within a month, but charges are charged for installment payments. TikTok has not stated whether the service is syariah-compliant or not.
In addition to TikTok, e-commerce service Shopee also offers a similar feature called SPayLater. Initially, SPayLater was criticized for providing a non-syariah-compliant service in Malaysia – leading to changes in Shopee’s method of charging late payment fines, as well as other additional charges.
At the same time, previous analysis showed that there were around 3.7 million active users of BNPL services in Malaysia, the majority of whom were between 21 and 45 years old. In regulating such services so that they do not affect consumers in the long term, a Consumer Credit Bill will be tabled by the government soon – thus ensuring that all parties carry out their responsibilities properly for the benefit of consumers, as well as regulating non-bank credit providers.