THE USE of buy now, pay later (BNPL) services among Filipinos as of July rose by 9.6 times since September 2018, with the penetration rate among the highest in Southeast Asia, financial solutions provider UnaCash said on Tuesday.
“It’s quite evident that in the local market, there is a growing appetite for BNPL services, driven by increased e-commerce and a rising preference for convenient financial options. Be it through the online space, or through in-store channels, its developments present significant opportunities for businesses and investors looking to potentially engage with the expansion of the digital economy in the country,” UnaCash Head of Product Erwin G. Ocampo said in a statement.
“Buy now, pay later adoption in the Philippines has surged over the past few years, expanding 9.6 times since 2018, reflecting a strong consumer shift towards flexible payment solutions. There is a stable share of BNPL users at 24.7%, placing it among the top three countries in Southeast Asia,” UnaCash said.
The company’s data showed that there was a 3.3% monthly increase in BNPL users in the country aged 15 and above from September 2018 to July 2024.
“The country’s solid performance in BNPL adoption reflects a growing trend towards financial solutions such as this, primarily driven by increasing digital financial services and consumer demand for flexible payment options,” it said.
Singapore recorded the highest BNPL penetration rate in Southeast Asia at 75.4% in the period as its user base increased by 7.1 times with an average monthly growth rate of 2.8%. It was followed by Vietnam, whose share of BNPL users stood at 24.9%.
Trailing the Philippines were Malaysia with a penetration rate of 10.2%, Thailand (6.0%), Brunei (4.2%), and Cambodia (3.6%).
Meanwhile, the share of point-of-sale (POS) users in the Philippines aged 15 and up stood at 33.1% as of July, surging from the 3.2% share in September 2018.
UnaCash attributed the increase to the rise of mobile commerce and the growing number of POS kiosks in the country.
“POS adoption reflects the country’s increasing digitalization and the widespread use of mobile payment solutions. The development of self-service kiosks and enhanced e-commerce platforms have further contributed to this significant rise,” Mr. Ocampo said.
The Philippines ranked second in the region in terms of POS user share after Indonesia’s 67.5%.
“With the share of POS users of 4.5% in Vietnam, 2.8% in Malaysia, and 1.6% in Singapore, POS markets in these countries are at earlier stages of development, indicating potential for growth,” UnaCash said. — A.M.C. Sy
