Malaysia has lower credit card penetration than mature markets, and BNPL has filled that gap, with the government also moving forward with a Consumer Credit Act to bring BNPL under formal regulatory oversight. Regulatory tightening means stricter screening in the short term, but it also means the market gains a firmer foundation of trust over the long term. Because GrabPay PayLater sets credit limits based on a user's activity history within the Grab super-app, its strength is strong reach into the existing Grab user base.

It can be expected to reduce cart abandonment for mid-priced items in the tens to low hundreds of ringgit, such as electronics accessories, fashion, and beauty, categories where "buy now, pay in installments" spending feels natural. The priority for adoption rises for merchants with a high share of customers in their 20s and 30s who do not hold a credit card.

When a consumer selects PayLater at checkout, Grab approves the payment within its own credit assessment limit, and the consumer subsequently repays Grab either in a single deferred payment or in installments. Hecto Financial receives the merchant's portion of the payment in ringgit, and after currency conversion, pays it out to the merchant in Korea in the contracted currency, one of USD, KRW, or JPY. Consumer repayment risk sits with the BNPL provider, so it is generally kept separate from merchant settlement.

A company in Korea can consider accepting PayLater through Hecto Financial without a separate BNPL merchant contract with Grab. Because BNPL tends to have tighter industry and product category restrictions than e-wallets, it is essential to confirm whether your product category is supported before signing a contract.

• Country of business registration

  Confirm contract eligibility for businesses registered in Korea

• Sales channel

  The integration approach differs depending on whether you sell online only or also operate offline stores in Malaysia

• Product categories handled

  Check in advance whether your category falls under restricted sectors per GrabPay PayLater's operator merchant policies

• Local regulatory compliance

  Confirm compliance with Malaysia's payment and foreign exchange regulations (see official sources below)

Transaction amounts approved via PayLater are received by Hecto Financial in ringgit regardless of the consumer's installment repayment schedule, and after currency conversion, paid out to the merchant in Korea in one of USD, KRW, or JPY, as selected under the contract. The settlement cycle and fee rate follow the contract terms, and for refunds, adjustment of the consumer's remaining installment schedule is handled through Grab's own process, so please confirm the processing timeline in advance.

• Bank Negara MalaysiaOfficial information on Malaysia's payment systems and related regulations. Where this page differs from actual regulations, the official source takes precedence.