Latest news with #Atome
Business Times
09-06-2025
- Business
- Business Times
Atome to get US$75 million from Lending Ark as credit demand grows
[HONG KONG] Atome, South-east Asia's biggest buy now, pay later provider, secured a US$75 million asset-backed financing facility from Lending Ark, as demand for affordable credit grows in the Philippines. The financing will help Atome to broaden its credit offerings and expand financial access in the Philippines, according to a statement on Monday (Jun 9). Atome is owned by Singapore-headquartered Advance Intelligence Group, which is backed by investors including SoftBank Vision Fund 2, Warburg Pincus and Northstar. As traditional credit markets in the US and Europe falter, private credit investors are turning their attention to emerging markets such as the Philippines, drawn by the promise of stronger growth and higher returns. Atome offers insurance, savings, cards and lending services. Lending Ark, advised by Citic Securities CLSA Capital Partners, has deployed more than US$1 billion across Asia-Pacific, according to Monday's statement. Atome Financial, the digital finance unit of Advance Intelligence Group and operator of Atome and Kredit Pintar, said its 2024 revenue jumped 45 per cent to US$280 million. BLOOMBERG
Malaysian Reserve
09-06-2025
- Business
- Malaysian Reserve
Smart spending or slippery slope
OVER the past few years, Buy Now, Pay Later (BNPL) services have gained remarkable traction in Malaysia. Platforms such as Atome, Grab PayLater, SPayLater and hoolah have become household names, offering consumers the chance to split their payments into manageable installments without the need for traditional credit checks or interest rates — at least at first glance. While these services have democratised access to consumer credit, especially for younger Malaysians and those underserved by traditional banks, they also come with considerable risks. As we look at the benefits and drawbacks of BNPL in Malaysia, it's clear that although this payment option can be helpful, it should be used carefully and with proper monitoring. Increased Financial Accessibility One of the most significant benefits of BNPL is its ability to provide credit access to individuals who might otherwise be excluded from traditional financing options. Many Malaysians, particularly younger consumers and gig economy workers, lack sufficient credit history or stable income to qualify for bank loans or credit cards. BNPL platforms sidestep these barriers, allowing more people to participate in the consumer economy. BNPL offers a convenient way to manage cashflow. Especially for salaried individuals who face short-term liquidity constraints, being able to spread out payments without paying interest (if payments are made on time) can be highly beneficial. This can be particularly useful for big-ticket purchases such as electronics or household appliances. Many BNPL services advertise them- selves as 'interest-free' if payments are made on time, which can be more affordable than traditional credit card debt that typically comes with high interest rates. For disciplined users, this can be a more cost-effective financing method. BNPL also provides a boost to local e-commerce and retail industries. By lowering the barrier to purchase, it encourages higher consumer spending. This is especially evident during major sales events like 11.11 or Aidilfitri promotions, where BNPL plays a key role in enabling consumers to buy more while spreading their expenses. Technological Convenience The user experience with BNPL apps is generally smooth, quick and integrated directly into the checkout process. Many Malaysians, who are increasingly digital-savvy, appreciate this seamless, app-based access to credit compared to the paperwork-heavy bank loan process. Despite the convenience and flexibility that BNPL services offer, it is important not to overlook the potential risks they pose. Consumers should approach these services with caution, evaluating their financial situation and the necessity of their purchases. Without careful consideration, what seems like a helpful short-term solution could turn into long-term financial strain. The most significant concern with BNPL is the ease with which consumers can accumulate debt. Because the barrier to entry is low and the approval process is quick, many users take on multiple BNPL plans simultaneously. Without a consolidated credit check across different platforms, it's easy for consumers to lose track of how much they owe — leading to over-indebtedness. Malaysia's regulatory framework for BNPL is still in its early stages. While Bank Negara Malaysia (BNM) and the Ministry of Finance (MOF) have signalled intent to regulate this space, the current environment allows BNPL providers significant leeway in their operations. This regulatory grey area poses risks to consumer protection, especially in terms of transparency, data privacy and dispute resolution. Although BNPL is often marketed as 'interest-free', many platforms charge significant late fees if payments are missed. These penalties can quickly add up, making what seemed like a good deal an expensive one. For financially vulnerable consumers, this can lead to a cycle of missed payments and escalating fees. BNPL inherently encourages spending beyond one's means. Because consumers are not required to pay the full price upfront, they may be tempted to make unnecessary or luxury purchases they would otherwise avoid. This can distort financial priorities, especially among younger users with less financial literacy. Unlike credit cards or traditional loans, most BNPL platforms in Malaysia do not report repayment behaviour to credit bureaus. This means that even responsible BNPL users gain little to no benefit in building their credit scores, which could affect their ability to access more substantial credit in the future. Impact on Malaysian Consumers The impact of BNPL on Malaysian consumers is deeply nuanced. On one hand, BNPL has become a crucial financial tool, especially amid rising living costs and economic uncertainty. For many Malaysians, particularly the bottom 40% (B40) and middle 40% (M40) income groups, BNPL offers a financial lifeline to purchase essential goods without overburdening their monthly budgets. However, the same flexibility that makes BNPL attractive can also be dangerous. According to reports by the Credit Counselling and Debt Management Agency (AKPK), there has been a noticeable uptick in the number of young Malaysians seeking debt management assistance — many of whom cite BNPL as one of their liabilities. This trend indicates a growing reliance on short-term credit solutions without corresponding financial education or planning. Another area of concern is the lack of transparency and standardised terms across platforms. Some BNPL providers impose different fees or require access to personal data that might be used for targetted marketing or even resold to third parties. This lack of uniformity can confuse consumers and lead to poor financial decisions. To address these challenges, Malaysian authorities must accelerate the implementation of regulatory frameworks that protect consumers without stifling innovation. The Financial Services Act and forthcoming updates to the Consumer Credit Act could provide the legal infrastructure needed to govern BNPL practices, enforce fair lending standards and ensure that providers operate with transparency. Moreover, financial literacy campaigns are crucial. Malaysians, particularly those in younger demographics, need to understand that BNPL is a form of debt — not a free pass to consume. Education efforts should emphasise budgeting, understanding interest and fees, and the importance of timely repayment. BNPL in Malaysia is a double-edged sword. While it provides a flexible, accessible credit alternative that can help consumers better manage their cashflow and make necessary purchases, it also poses significant risks when used irresponsibly. The growing adoption of BNPL reflects changing consumer behaviour and a broader shift toward digital financial services — a trend that is unlikely to slow down. For BNPL to be a force for good, it must be matched with responsible lending practices, clear regulations and informed consumer behaviour. Only then can it truly support Malaysia's financial inclusion agenda without creating a new generation of debt-strapped consumers. Intan Baha is the chief sub-editor/ production editor of The Malaysian Reserve. This article first appeared in The Malaysian Reserve weekly print edition
Yahoo
09-06-2025
- Business
- Yahoo
Atome secures $75 mln financing from Lending Ark to expand in the Philippines
SINGAPORE, June 9 (Reuters) - Southeast Asian "buy now pay later" provider or fintech firm, Atome, said on Monday that it has secured a $75 million asset-backed financing facility from Lending Ark Asia Secured Private Debt Fund to expand in the Philippines. Atome is part of Singapore-headquartered Advance Intelligence Group, which is backed by investors including SoftBank Vision Fund 2 and Warburg Pincus. Lending Ark, advised by CITIC Securities CLSA Capital Partners (HK) Ltd, focuses on secured private credit opportunities in Asia Pacific. "The Philippines is a key growth market for Atome," Andy Tan, Atome's Chief Commercial Officer, said in the statement. "This financing reflects the continued confidence in Atome's ability to deliver inclusive, risk-managed credit at scale." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
09-06-2025
- Business
- Bloomberg
Atome to Get $75 Million From Lending Ark as Credit Demand Grows
Atome, Southeast Asia's biggest buy now, pay later provider, secured a $75 million asset-backed financing facility from Lending Ark, as demand for affordable credit grows in the Philippines. The financing will help Atome to broaden its credit offerings and expand financial access in the Philippines, according to a statement on Monday. Atome is owned by Singapore-headquartered Advance Intelligence Group, which is backed by investors including SoftBank Vision Fund 2, Warburg Pincus and Northstar.
The Sun
05-05-2025
- Business
- The Sun
Malaysia's BNPL: How tech preys on financial vulnerability
AS Malaysia's digital economy flourishes, a new financial trend is transforming the way consumers shop: Buy Now, Pay Later (BNPL). Once seen as a niche payment option, BNPL has rapidly gained traction, especially among young Malaysians, thanks to its integration with major e-commerce platforms and mobile apps. However, as usage surges, so do concerns over its long-term consequences, especially with the extent of its proliferation into businesses that reasonably should not offer it, such as a recent BNPL advertisement by a fried chicken fast food chain in Malaysia. Big BNPL bang In recent years, BNPL services such as Atome, Shopee PayLater, Grab PayLater and Pace have embedded themselves into Malaysia's retail and digital ecosystem. These services allow consumers to split payments into interest-free instalments, often without the need for traditional credit checks. This model has proven immensely popular among the country's youth. According to a 2023 report by Bank Negara Malaysia, the adoption of BNPL services is highest among those aged 18 to 30. The appeal lies in its simplicity and accessibility, especially for individuals who do not own credit cards or lack a formal credit history, but do own smartphones and internet access. A key driver of BNPL's growth in Malaysia is its seamless integration into e-commerce apps. Platforms such as Shopee and Lazada offer PayLater options directly at checkout, creating a frictionless experience that encourages impulse purchases. Meanwhile, Grab PayLater extends BNPL services beyond retail, letting users defer payments on ride-hailing, food delivery and in-store QR code purchases. This level of integration has been shown to boost conversion rates and increase average basket sizes for merchants, according to industry insights from BNPL providers. For brands, offering BNPL has become a competitive necessity, particularly in sectors such as fashion, electronics and beauty. This is a financial model that thrives on technology. Algorithms assess eligibility in seconds using alternative credit scoring methods, while mobile apps make instalment management intuitive and accessible. With push notifications, gamified reward systems and personalised offers, many platforms nudge users towards frequent use without fully highlighting the financial risks. Despite its perks, BNPL is increasingly being scrutinised for fostering unsustainable financial habits. As many BNPL providers do not report to central credit agencies, debts can accumulate unchecked, until missed payments trigger late fees or third-party collections. Predatory for vulnerable demographics The Federation of Malaysian Consumers Associations has also voiced concerns, with CEO Saravanan Thambirajah highlighting that the younger generation are particularly prone to impulse spending via BNPL due to its 'illusion of affordability'. The ease and accessibility of BNPL services disproportionately impact younger and lower-income Malaysians, who are often the least financially prepared to manage multiple instalment payments. Often at the lower end of the economic spectrum and lacking financial literacy, these consumers are frequently targeted through social media advertising and in-app promotions, framing BNPL as a lifestyle upgrade rather than a loan. According to data from Fintech News Malaysia, the majority of BNPL users report using the service for non-essential purchases, such as fashion items, gadgets and entertainment. While some platforms have introduced spending caps or payment reminders, consumer education remains limited. However, as more Malaysians embrace these services, the risks of debt accumulation, along with financial, technology and social media illiteracy must not be ignored. In a world of instant gratification with just a few swipes on our phones, the question remains: Are we buying convenience now and paying the price later? To quote Jay-Z: 'If you can not buy it twice, you can not afford it'. After all, just because you can buy now and pay later, does not mean you should.
