All of the below statement is personal observation and opinion of TS's and does not reflect the real workings of the world.

As the country grows, perhaps the wealth gap widens if this is not addressed carefully through policy and fiscal stimulus in the market, creating the gap disparity.

On the observation and hypothesis of young HKers, or NYC the young are more focused on themselves, in personal and career aspects.

One will get married but does not wish to conceive a child. Hence, the hard-earned money is used to pay rents, expenses, and self-care/self-improvement/self-wants.

It can be watches, clothes, home improvement, gadgets (let's not go into big houses or cars). These are not huge in purchase prices but slowly buying it will accumulate more commitment to pay them.

There are two options, if you save enough you buy it outright or bill it on the credit card and pay end of the month.

However, there is a third option, remain a young untapped market but a few start-up is doing it.

Split your payment into three months, interest free (yes we know about 12months ezpayment, but this is different).

This 'split your payment' can be used on smaller prices products, eg Nike sneakers RM750

Split 3
RM250 per month x 3

This is definitely more appealing for people to BUY IT outright since payment is only RM250, next month is next month's problem.

Come discuss if this untapped market needs to move faster in Malaysia because AU, EU, US, CHN is moving towards that era. Recently Paypal is offering this service as well to stay relevant in the money transfer industry.

Do you think this is healthy for the young or it is still inevitable that the wealth gap will widen with this form of payment?

This post has been edited by ClericKilla: Jan 13 2021, 11:58 AM

tl; dr......


pm k-pop nancy bideo

Good for more debts

More domestic debts, but perhaps the economy can boost since faster sales.

Better 12 months also no interest.

spend within your limit.
Nike is not necessities.

You obviously dont understand the new Split payment.

good. 12 months commitment is too long.

3 months or even 2 months could be attractive to certain demographics. for example, phone 4k, split into 2 months is just 2k per month and within their affordable range.

Tldr. Each para 1 sentence. Which school u go, owai..

Why it is new? sound likes 0% monthly installment for me currently min is 6month iinm.

In my opinion, this is a great payment option. Not only it offers 0% interest but it also allow debit card usage. Not everyone has a credit card. It would be great if it has 6 month option.

I agree that 12 month is too long, however 3/6 months seems more viable. Plus we only need to pay first month as upfront payment and not having the whole total amount as a limit for the card.

For example: A basic laptop for Rm1k. This translates to Rm333.33 x 3 months or Rm100 x 6 months. Rm100 for 6 months I'd say pretty good and really affordable.

This post has been edited by jasonscottmirza: Jan 13 2021, 01:37 PM

what is there to understand ??
... you can't afford cash, installment 1yr muntah darah.
Just split those buttcheeks.

split right brehh ?? nyehhheheh

Good idea...

Yolo

the amount of the item you purchase will most likely be marked up.

Split takes 7% minimum from your sales rev. not profit, sale revenue. the seller has to mark up around 15-17% at least (based on my calculation) to actually cover the fees.

Ya noticed this

Very weird gamer hideout offer split payment for new game release

250 damn expensive

i thought i saw one of the banks can easily split your big bill payment into 3 or 6 or 12 months.

Yeah, 3 months is maximum. I hope the other realize that there is a difference between committing 3 vs 12 months.

The split payment for 3 months is interesting in the UK perspective, not because of iPhone but it applies to many other products ie , Nike sneakers, Expensive books (£220 / 3), car parts and accessories

It certainly attracts more people to spend since they know it needs to be covered in 3 monhts.

3 months vs 6months or 12months is still a difference. Long stretch on commitment vs short.


Yeah the split 3 months allows affordability although we all know the need to pay by the end of the term.... just allowing and buying time for people.

That day baru buat rim job.. spray my rims black

I see macam ok, Split takes from seller sales rev, but buyer wins because get to use Split.

unless Seller decides to markup.. then buyer still get choice to pick other options or other shops...

Not weird, if games release RM280 /3

RM 94 per month.. definitely for consumers u will feel it's affordable.

and the shop can clear inventory and improve their numbers...


i dun know. i only know im tied to 12months ez payment.

paid 4 months alredy wanna vomit

should make a poll, if you buying an item for RM750, and suddenly cashier ask
- do u want to pay full amount
- do u want to split into 3 months

how many ppl will pick the split option

good if it improves productivity, can be used to make money or QoL
else just save up money

anyway OCBC got this credit card can do this also la
https://www.ocbc.com.my/personal-banking/ca...mastercard.html

Your basically referring to something like Afterpay right?

Dont banks offer this for purchases thru lazada and shopee?

Great idea but we might end up becoming like south korea lol

done


definitely improve qol since affordability + stretched payments but unsure if its sustainable to themselves.

if not sustainable to users, then slowly payment fails and etc etc


OCBC is known for their fintech speed also

however u need to apply ocbc cc for this.. im refering to company products like AfterPay and Splitit

Also if you do OCBC screencap u shared... spending 2000 u need to pay 183 per month already lulz. and lock u for 12 months.

Kampung traders has been doing this for centuries. Back from where I came from, it was called "bayar kali". My mom sold baju kurung RM180 per pair, bayar 6 kali, RM30 a month. But then a lot of people only bayar satu kali and disappeared

Yes correct, thats why my long-winded opinion and observation.

Afterpay, Splitit, yesterday was paying through PayPal and notice they are also offering it already, kiasu also wanna come in this industry.. since Paypal has their number of user..

These Afterpay, splitit, klarna, etc etc is still new

I think this could be a win-win for both consumer and vendors.

1. Split payment over short term, increase personal monthly cash flow.
Can greatly help for cash strap people who are in need to purchase high ticket items but are unable to make full payment during checkout.

2. Vendor are able to clear their stock quickly at 1/3, 1/6, 1/12 (depending on the repayment period) of the cost, and assuming the buyers are good paymasters.

I'm guessing you're venturing into this? PM tepi jap.

No, not venturing into this.

I saw some small start up in Malaysia already doing this.. its not a wow idea, but you understand point 1 and 2 correctly.

I got one more in my head... https://www.ey.com/en_my/banking-capital-ma...anking-services sunbearau

How if buyer only pay 1 time then cabut after that?

Any different from PTPTN repayment issues?

Good idea, but we can't have good things because of Malaysian attitudes. They will see it as 67% discount.

For example in UK its relatively simple.

I input my name, address, phone no.

There was once I missed the second month payment and delayed it for a week. My debit card showed - £67

Syukur no letter, then paid the amount but the third month remains the same. I believe if any longer delay for a month, the computer auto-generate LOD to be sent to your house?

always opt for interest free instalment

Does delayed payment allows you to build bigger savings?

no. purely for credit scores.

any cash deferment option is good for cash flow
more so with 0% fee/charges

This post has been edited by Zaire.Ver: Jan 13 2021, 03:17 PM

it will also help you to start a business with minimal amount. back then I use ikea IPP 12 months 0 interest to furnish my airbnb condos. managed to reduce the initial capital needed to setup a new bnb by 80%

This post has been edited by SiewLee30: Jan 13 2021, 03:19 PM

Agree

If direct debit, then cannot run. Good way around issue of buyer not paying up.

But enforcement is very weak here. If direct debit not allowed, habis la.

https://paywithsplit.co/split-for-business/

already few company and ecommerces websites using this split payment method. can even work using debit card, which is neat

paywithsplit is one the example i've seen local websites using

It's all down to how good are the enforcement are in Malaysia.

PTPTN managed to blacklist PTPTN borrowers on a no-fly-list preventing them from flying out of Malaysia unless they've paid up the amount they've owed.
It's bad for those who need to work+travel frequently.

However for those who are permanently based in Malaysia, being a bad PTPTN paymaster will severely affect their credit score and thus comes to my point below..

Like similar credit facilities offered by financial institution, being a bad paymaster will affect your credit score and until the point where the buyer can be blacklisted in CCRIS. Thus the buyer won't be able to request/receive any financial services/loans/card applications from any legal financial institution in Malaysia. Ah long/Father-Mother/Family/Crowd-funding is a different story.

Until now I've yet to see a proper enforcement towards PTPTN borrowers, the best course of action is mandatory salary deduction (instead of voluntarily).

He needs to scale up faster if he wants to remain relevant.

This pay with split is for some time already.

Services like these is already available overseas.

Yeaps, poor gets poorer.

Some can live a life without credit score. Or they die die want to run from PTPTN loan they adapt to a life without credit score (eg. ah long, leech off family, snatch thief, songlap). Our beautiful country offers many alternatives
PTPTN defaulters are just immature and don't think about their future, but it is the same demographics of this split payment idea.

I understand the repercussions of defaulting on any credit/loan services. But it's obvious these 'on purpose' defaulters don't.
Judging from our high number of young bankrupts and PTPTN defaulters, seems financial literacy among the Gen Y/Z is still very poor.

What works in another country does not necessarily work here. It needs to be adapted to the local environment to be effective.

And enforcement in Malaysia for anything is just shit, except maybe CCRIS.

Well said. It is unfortunate trying to live as a law abiding citizens in Malaysia, you would be taken advantage of and have little to no protection against people who are abusing the system.

If this continues, Malaysia would be like another Philippines. No joke. It's really bad here.

Additional support in Malaysia's case

Refer to CCRIS in order to allow user registration to use split payment but kind of defeat purpose to allow the mass consumer to spend now pay later.


apa machiem, still eating pinoy laksa? or found new girl already?

whats the bloody diff TS of paying 0% interest for 3 months versus 12 months

normally people pick the longest tenure so their cash can be used elsewhere for investment or other side gigs. use money to make more money

now you reduce lesser tenure so.. they pay more?

what am i missing here

got difference one

stretch ur commitment vs short commitment is different

Reduce lesser tenure, pay same 0% just 3 months quick and easy.

For the bolded part, that is for a proper citizen with financial literacy.

I think it can be great

Sometime u have some ad hoc expenses that come up, ranging from 200-1000, then can split the payment over time. Like car maintenance, ad hoc gifts, repair stuff...

Don't need to dig from my emergency fund

This post has been edited by LiMi: Jan 13 2021, 04:33 PM

Buy and save the economy

Yes and 12 months is a little too long.

Good example

thats the point isnt it? we should teach people to be more financially literate instead of offering weird split payments

credit payment already exist to be an option for consumers. i still dont see diff of split versus the current ongoing 6/12/24/36 months installments

Thats the point.. encourage spending.. Malaysia to arah 1:1 with SGD

Its not weird, its the way forward in the future.

Example splitting your book payment from RM1200 to 400 each month sounds about right.

usually, this split payment is offerred on their websites.




the difference is 3 vs 6 vs 12 vs 24 vs 36

and small items like rm1000 need to split 6 months u hailat or 12 months..

But why? Can always swipe then call bank to arrange for X months

Why need 3 months?

If you are concerned over the impact on your cash flow - get the ezpayment 0% interest

If you dont want to have your future earnings cut - pay outright

If you want to adjust - just call the bank

Senang je, no need susah2 pikir

It's damn good...buy a 1K laptop but just need to pay RM 100 for 6 months only. Wonder when this seller gonna go bankrupt?

quick n fast 3months

if no interest and i able to pay full amount, i will split, i am a fcking cheapskaper

couldve just added in a 3 month 0% interest free installment option lol

adek....let unker teach u time value of mani, future value and current value.....

u kasi interest free, brapa kapital lu kena ada? Bank loan ada interest free punya ah? saving account tarak interest (although now interest rate ciput lah)

Looks like our country's trajectory. Evil witch used Philippines' shoe collection as her goal. If you know what I mean

I'd like to see if she follows suit and enters politics a few years later.

Exactly. The easy 'approval process' is not suitable in our current environment and target demographics.

Hence I feel split payment system won't work here with current youth financial literacy, unless something is improved or a new enforcement method is thought up.

well will work i guess, is just a different way to manage cash flow
but i think those with problems managing their finance will be met with financial problems
but definitely need stable income lah

Longer tenure encourages sales, but bigger risk of defaulting. Got sales to pad numbers but no payment also no point.

You're assuming the youth will use their free cash responsibly, like investments and side gigs. Certain statistics (PTPTN defaulters & youth bankruptcies) say otherwise.
PTPTN is a key issue as it keeps coming up as a key point in power hungry politicians' promises in recent years.

Business owners need to weigh the risks. Still a good system but offer at your own risk I guess.

youre missing the point

its perks are solely on the business, yes since can get money faster. but for consumer whats the benefit?

why would someone pick 3 months when banks already let them pay in 6/12 months lol

thats my point

If everyone is like me... I doubt it would make much of a difference. I make a point to limit my commitments at any one time which is determined entirely on my excess money at the end of the days prior to receiving the current months salary.

If I already have commitments I will not take another commitment until the current commitment had been settled.

The salary deduction method is used by Aus right now. But the repayment amount is linked to how much you earn. Think its anyone that earns below 55k a year doesnt need to pay anything back and the repayment amount increases the more you earn capping at 10%.

This system is quite good since low income earners dont have to burden their selves with immediately repaying the loan. But the one loophole is that they can't track what people earn overseas. So its easy to just declare zero income in Aus and continue to not pay the loan

Do banks offer 0% interest? Is it easier to get this split payment via retailers?
Asking as I really don't know.

If its way easier to get 3 months from retailer, most would choose this option.
Same reason why many go to ah long instead of banks. This is still a type of 'loan'.

The convenience factor plays a big part, especially for us lazy ass Malaysians. Especially the youth when it comes to expenditure.

I feel like it will still encourage overspending, so definitely not healthy. If you want to buy something and you can't afford paying it in full, instead of splitting into 3 payments, save the money and buy it 3 months later.

There r already few companies doing this. Hoolah, paywithsplit and Atome.

The good thing about this is u can use debit card but max is for 3 months only. Good for ppl without credit card.

i ingat split check when lepas makan

this one girl always like this
luckily I no friend her already

5 FUCKING CENT PUN NAK WEH
satu sen pun she berkira
majibai go die la fucker

Because there are people who would prefer to pay for a period of 3 months.

This split payment system is catered towards people who aren't financially "savvy"; more towards old school mak cik/ah pak/debit card type of people who prefers a simple monthly repayment scheme (excluding those fancy 0% interest terminology).

Payment plans 6 or 12months instalment with XXX% interest are subject to bank's approval and the individual credit health score, whereas Split payment evaluates the candidates differently.

Split payment opens offers consumers another means of easy/simplified monthly payment plan.

CB 5sen pun nak kira... pagi dia sapkok dulu then bagi 5sen foc la...

F
Want to use paylater option for my business.

Only worry is who acts as the debt collector. My business gets paid upfront, and if buyers don't pay creditor its their problem?

Money now is better than money later

But 3 months later for such a small amount makes not much sense. But for a short term cash injection maybe

Currently 0% offer for Credit card. If 3month how to ensure buyer not run away. The risk is there with 0% interest unless seller markup atleast rm10 for the all upcoming risk.

cannot less langsung
sometimes so kesian and shameful when said to her
later i give you the 20 cents

and she be like OK

LOL!!!!
means she really looks forward to get the 20 cents

If me I already ask campak je la 20 cents so bodoh

even rm1 also stingy

harga rm16

i said only have rm15 no small change

she would say nevermind, once you have the rm1 you give me later

wtf when forgot and no bagi will text, when can you give me my rm1?

wtf

Hahaha what the hell. Brainfart. I meant Rm166. But you get the point.

Gamer's Hideout kek