‘Buy now, pay later’ scheme not used for impulsive purchases

‘Buy now, pay later’ scheme not used for impulsive purchases
SunStar Business

A RECENT study by UnaCash revealed that four out of 10 Filipinos use ‘buy now, pay later’ (BNPL) services primarily for budget planning and management.

The online survey indicated that 49.6 percent of respondents have used or heard of BNPL services, while 37.4 percent have heard of but not used them, highlighting its popularity.

Among users, 38 percent consider using BNPL monthly, 29 percent plan to use it biannually, and 26 percent annually.

The primary reasons for using BNPL include urgent purchases without available funds (37 percent), spreading out expenses (23 percent), simplicity and convenience (20 percent), future fund use (13 percent), and acquiring high-value products immediately (seven percent).

Erwin Ocampo, UnaCash’s head of products, noted that Filipinos use BNPL strategically, seeing it as a financial ally rather than just a payment method.

“Our findings highlight the calculated approach Filipinos take to manage their finances and practice good spending habits and dispel the assumptions that BNPL is used for impulsive purchases,” he said.

“As BNPL continues to gain traction in the Philippines, it is clear that it can also be perceived as a safety net for unforeseen financial needs, aside from an effective planning and budgetary tool,” Ocampo added.

The study also found that 53.3 percent of respondents newly introduced to BNPL through the survey would consider using it monthly, 26.7 percent biannually, 13.3 percent annually, and only 6.7 percent showed no interest.

Among those new to BNPL, 93.3 percent would use it for urgent purchases, and 40 percent for high-value items without prior saving. Despite limited experience, 86.7 percent view BNPL as an effective budgeting tool.

UnaCash’s internal data shows middle-class customers frequently use BNPL for smartphones (36 percent), appliances (30 percent), furniture (30 percent) and laptops (four percent). / KOC


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