THE buy now, pay later (BNPL) adoption in the Philippines has surged over the past few years.
UnaCash, an in-app and in-store financial solutions provider, said the adoption has expanded 9.6 times since 2018, reflecting a strong consumer shift towards flexible payment solutions.
The firm said there is a stable share of BNPL users at 24.7 percent, placing it among the top three countries in Southeast Asia. For users aged 15 years and older, 3.3 percent increase was reflected monthly from September 2018 until 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,” the company said.
Erwin Ocampo, head of product for UnaCash, said there is a growing appetite for BNPL services in the local market 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,” said Ocampo.
Singapore led the region in share of BNPL users at 75.4 percent, with its user base having increased 7.1 times with a modest average monthly growth rate of 2.8 percent over the same period.
Vietnam, displayed a penetration rate of 24.9 percent— a comparable growth rate of 7.1 times — with a 2.8 percent monthly increase. Meanwhile, other Southeast Asian markets such as Malaysia (10.2 percent), Thailand (six percent), Brunei (4.2 percent), and Cambodia (3.6 percent) had lower share of BNPL users.
UnaCash also reported that the Philippines is emerging as a leader in digital payment solutions in Southeast Asia, with 33.1 percent of adults aged 15 and older using point-of-sale (POS) systems as of July 2024.
This is a significant increase from just 3.2 percent in September 2018, driven by mobile commerce and the growth of POS kiosks.
Only Indonesia surpasses the Philippines, with a 67.5 percent POS usage, thanks to cloud technology and strong e-commerce integration. Vietnam, Malaysia and Singapore have lower shares at 4.5 percent, 2.8 percent and 1.6 percent, respectively, indicating room for growth. / KOC