Transparency in the Fine Print of BNPL vs EPP in Malaysia Context: Who Really Protects the Consumer?

The Malaysian consumer credit landscape has undergone a seismic shift with the rapid proliferation of Buy Now, Pay Later (BNPL) services, fundamentally challenging the longstanding dominance of traditional Easy Payment Plans (EPP) offered by regulated banking institutions. By 2025, the BNPL sector has transcended its niche fintech origins to become a ubiquitous financial instrument, necessitating a rigorous, academic examination of its structural transparency, regulatory oversight, and alignment with Responsible Islamic Finance principles. This comprehensive research article provides an exhaustive comparative analysis of the "fine print"—the terms, fees, and disclosure practices—of major BNPL providers (specifically Shopee SPayLater, Grab PayLater, and Atome) versus traditional EPPs (such as those from Maybank and CIMB). It critically evaluates the efficacy of the legislative milestone, the Consumer Credit Act 2025 (CCA), and the subsequent establishment of the Consumer Credit Commission (CCC) in mitigating predatory lending practices. Furthermore, the study explores the profound Shariah implications of these models, specifically analyzing late payment charges (Ta’widh and Gharamah) and the objective of wealth preservation (Hifz al-Mal). The findings suggest that while the CCA 2025 represents a monumental step toward standardized protection, a significant "protection gap" persists due to the sophisticated behavioral economics utilized by fintech algorithms. The analysis concludes that true consumer protection requires a synergistic approach involving rigorous regulatory enforcement, enhanced financial literacy, and strictly governed ethical lending practices to safeguard the vulnerable Malaysian consumer from the illusion of frictionless finance.