Malaysia now licenses buy-now-pay-later providers, Indonesia has set income and age checks, and Thailand is preparing its own framework
Regulators in three of Southeast Asia’s largest markets have moved this year to put guardrails around buy now, pay later, one of the most familiar buttons at online checkouts across the region. With the year-end holiday season approaching, the new rules give travelers a useful prompt: split the cost of a trip only when the instalments fit comfortably alongside everything they already owe.
Malaysia’s Consumer Credit Act 2025 came into force on 1 March 2026, according to the Consumer Credit Commission (Suruhanjaya Kredit Pengguna, SKP), the regulator set up under the law. The Act requires companies that run buy-now-pay-later schemes to hold a licence from the Commission. Licensing requirements took effect on 1 June 2026, and providers have a six-month transition period to apply, running to the end of the year. For Malaysian travelers, the plan chosen at checkout is moving under one rulebook that covers conduct, disclosure and responsible lending.
In Indonesia, the Financial Services Authority (OJK) has set out who can use PayLater offered by finance companies. Under OJK Board Member Regulation No. 2 of 2026, finance companies must check that a new or renewing customer is at least 18 years old or married, and earns an average gross income of at least Rp3 million a month, backed by documents such as payslips or bank statements. Finance companies had to apply these checks by 1 July 2026. The regulation also limits how many PayLater platforms one borrower can use, and caps the share of income that PayLater repayments may take: 40 percent in 2027 and 2028, falling to 30 percent from 2029.
Thailand is next. The Bank of Thailand plans to create a dedicated licence for buy-now-pay-later providers, with final rules targeted for the fourth quarter of 2026 after a public consultation, according to The Nation. The central bank’s governor has said the measures under consideration include a minimum user age and new consumer-protection rules, reflecting concern that easy instalment credit is drawing young people into debt for everyday spending.
The direction across the three markets is the same: PayLater is being treated as credit, with checks on whether the borrower can afford it. For travelers, that is a reason to plan, not to stop. Instalments can help spread the cost of flights booked early for a peak date, provided the traveler has already added up the whole trip, including hotel, activities and insurance, and counted every repayment already due in the months ahead.
“PayLater is a genuinely useful way to plan a holiday, but it works best when the traveler sets the budget first and the instalments second,” said Wesley Wijaya, Chief of Partnership at Airpaz. “The new rules across the region point the same way, and we want our customers to feel confident about the plan they pick at checkout, not surprised by it later.”
Airpaz, the Asia Pacific online travel booking platform, offers PayLater among its 100+ payment methods, including Atome in Malaysia, alongside cards, bank transfers, virtual accounts, QR and e-wallets. Travelers who add Airpaz’s flexible booking options, such as Reschedule or Refund, should also check with their PayLater provider how a change or refund is handled on an instalment plan, so the repayment schedule matches the trip they actually take.
The habit worth building before the holiday rush is a simple one: before tapping PayLater, add the new instalments to every repayment already owed and make sure the total still fits the monthly budget. In Malaysia and Indonesia, travelers can also check that their provider is supervised by the SKP or OJK, so the plan they choose is covered by the new rules.
About Airpaz — Airpaz is an online travel booking platform based in Asia Pacific, offering flights and hotels around the world. Alongside flights across 600,000+ routes and 450+ airlines and 1.2 million+ properties, it covers activities, ferries, buses, and trains — supported by 100+ payment methods, checkout in 61 currencies and 38 languages, flexible booking add-ons, embedded travel insurance, and 24/7 live-chat assistance. With 3 million+ app downloads, Airpaz helps travelers plan, book, and pay for entire trips in one place. Learn more at airpaz.com.