The rise of Buy Now, Pay Later for beauty and entertainment spending

Once considered a modern budgeting tool for big-ticket items like electronics or appliances, Buy Now, Pay Later (BNPL) services have expanded into new territory. Increasingly, young adults are using them to fund experiences and indulgences that fall squarely in the category of discretionary spending—Botox injections, lip fillers, facial treatments, designer beauty products, and front-row tickets to live concerts or festivals. What was originally marketed as a convenient way to manage spending for essential or semi-essential purchases has become a normalized method of financing what are, in many cases, moment-driven, short-lived pleasures.

This shift says less about recklessness and more about a generational redefinition of access. The post-pandemic cohort of consumers—especially younger millennials and Gen Z adults—have come of age in a climate marked by inflation, job instability, high housing costs, and a cost-of-living mismatch that makes the traditional pathways to financial security feel either delayed or inaccessible. In response, many are prioritizing lifestyle immediacy over long-term planning, choosing to capture joy while they can, even if it means paying for it later in small, manageable installments.

There’s nothing inherently dangerous about using BNPL services for discretionary purchases. The risk lies in the frequency, fragmentation, and lack of planning behind these choices. A single RM800 Botox session paid off in three monthly installments may not strain your cash flow. But when it overlaps with three other BNPL commitments—a concert ticket, a gym membership, and a facial treatment—it becomes increasingly difficult to keep track of what’s owed, when, and how it fits into your broader financial landscape. You may feel in control, but your money has already been assigned before it even lands in your bank account.

The appeal of BNPL is understandable. Compared to credit cards, it feels more transparent, often interest-free, and targeted. You know exactly what you’re paying and when. There’s no revolving balance, no temptation to overspend beyond your limit, and no hidden fees—at least, not at first glance. And because the purchase is broken down into smaller parts, it feels psychologically easier to commit. Spending RM1,200 on a festival ticket may feel irresponsible. But RM300 now, and RM300 each month for three months, feels manageable. The brain registers the lower short-term cost rather than the cumulative outflow.

The problem is that BNPL use has become increasingly frictionless. You’re not asked to consider how this purchase fits into your savings goals, investment timeline, or emergency buffer. You’re simply asked, “Would you like to pay in four?” And that question often comes at checkout, long after the emotional decision to buy has already been made. In this sense, BNPL doesn’t cause overspending—it enables it by eliminating the natural pause that typically comes with budgeting decisions.

What makes this trend even more difficult to spot is that BNPL payments don’t feel like debt. There’s no lump-sum repayment, no interest-bearing balance. But technically, they are short-term loans. If your income stops, or your expenses spike unexpectedly, those installments still need to be paid. And since many BNPL users are young adults who may not have emergency savings or stable income, this creates a hidden vulnerability. A sudden car repair, job layoff, or medical bill can become financially destabilizing—not because of a single BNPL plan, but because of the stacking effect of many small ones.

In regions like the US and UK, regulatory agencies have begun scrutinizing BNPL more closely, especially as missed payments begin to show up in credit profiles. Some services have started reporting repayment behavior to credit bureaus, which means a late payment could affect your credit score. In Southeast Asia, including countries like Singapore and Malaysia, BNPL providers are currently not fully integrated into national credit reporting systems. But central banks and regulators are watching closely, and reforms are likely. Bank Negara Malaysia has already issued consumer credit guidelines, and the Monetary Authority of Singapore has signaled the need for a responsible BNPL framework. This means that your current BNPL habits, even if invisible today, could have future consequences if reporting policies change.

In terms of personal planning, the real challenge is not the interest rate or the terms of the payment plan. It’s the budgeting blindness it creates. Many users fail to recognize that a large portion of their upcoming income is already committed. Because the payments are deducted automatically and spread out over time, there is no conscious recalibration of monthly spending. You may be spending 15 to 25 percent of your monthly income on BNPL plans without realizing it, especially if the plans overlap or reset in cycles. And if you’re using BNPL regularly while struggling to contribute to your emergency fund, savings, or investment accounts, the long-term cost becomes clear: your future is underfunded.

So what’s the alternative? It isn’t to swear off BNPL entirely. It’s to treat it with the same rigor you’d apply to any other financial decision. That means aligning your BNPL use with your broader financial plan. If you're allocating a fixed percentage of your income to lifestyle expenses—say, 20 percent—then BNPL payments for aesthetic treatments, concert tickets, or luxury products must fit within that amount. If they don’t, it’s a sign that you’re borrowing against your future cash flow, not managing your current one.

It also means tracking these payments. Most BNPL platforms allow you to view upcoming installments, but few provide a holistic view of your total obligations. That’s your job. Using a spreadsheet or finance tracking app, log every BNPL commitment and map out when each installment will be deducted. Then compare those obligations to your expected income, savings contributions, and essential expenses like rent, food, and transport. If your upcoming BNPL payments exceed what you’ve allocated for discretionary spending, it’s time to slow down. Pause on new purchases until current ones are paid off.

This also applies to the emotional logic behind the purchase. Many of the items being financed—like cosmetic procedures or event tickets—are marketed as moments of self-care, confidence, or community. And they can be. But before choosing BNPL, ask yourself if the experience or result will still feel worth it by the time you’ve finished paying for it. Will that moment of joy or self-esteem still hold value three months from now? If the answer is no, the purchase may be more about impulse than alignment.

There’s a deeper pattern behind all this. When BNPL becomes the default mode for nonessential expenses, it reflects a short-term, cash-flow mindset rather than a long-term planning one. You’re not necessarily overspending—you’re just not giving your future self the financial space to grow. Every RM300 concert ticket paid in installments displaces RM300 that could have gone toward a travel fund, investment portfolio, or tuition savings. The tradeoff is subtle, but it compounds.

And that compounding matters. In your twenties and thirties, building financial momentum is less about maximizing returns and more about creating capacity. The ability to respond to an emergency, invest in a career pivot, or take a sabbatical depends on financial flexibility. And flexibility requires margin—not just income minus expenses, but uncommitted funds that aren’t tied to any recurring payment or deferred obligation.

That’s why setting a boundary around BNPL isn’t about restriction—it’s about intention. It’s okay to use BNPL for a facial, a show, or a new outfit if you’ve planned for it, saved for it, or consciously redirected funds from another category. But if you’re using it as a way to sidestep uncomfortable financial truths—like not having enough liquidity, not saving consistently, or not knowing where your money is going—it’s time to stop and recalibrate.

Even better, create a lifestyle buffer fund. Allocate a small amount of money each month into a dedicated account for discretionary indulgences—whether that’s RM100 or RM500. Once the fund has grown to your target amount, use it for beauty, events, or experiences—preferably without BNPL. If you do choose BNPL, use it to extend flexibility, not to bypass readiness. That way, the payment plan supports your decision. It doesn’t replace it.

Ultimately, BNPL is a financial tool. Like any tool, it can be used well or poorly. When embedded within a clear, intentional spending plan, it offers convenience, control, and access. But when layered without tracking or restraint, it becomes a silent erosion of clarity. You might not feel the damage immediately. But over time, the frictionless payments can fragment your finances in ways that make it harder to build stability, confidence, and growth.

So if you’ve ever wondered why your savings aren’t increasing, why your cash runs low before the end of the month, or why you’re still stressed about money despite earning more than before—look again at the small payments. They may not be causing the problem outright. But they may be camouflaging the solution.

This isn’t about guilt. It’s about visibility. Your lifestyle spending deserves joy, ease, and beauty. But it also deserves planning, alignment, and honesty. Because the most beautiful thing you can finance is not a procedure or a concert—it’s your future peace of mind.