The analysts at UnaFinancial have studied the e-commerce trend and growth potential of Buy Now, Pay Later in the Philippines. The e-commerce market in the Philippines is forecasted to rise 2.5 times reaching USD 12 Bn by 2025. The share of Buy Now, Pay Later payment methods will grow from 3% in 2020 to 7% in 2025, equalling nearly USD 843 M.
In 2025 Philippine e-commerce is expected to increase 2.5 times amounting to USD 12 Bn in the 5-year period. The growth of e-commerce will have a positive effect on all digital payment methods, BNPL included. The BNPL services will develop organically, mirroring the growth of e-commerce. Thus, the segment will rise by 40% a year, growing USD 140 M annually. By 2025, the BNPL payment method in the Philippines will reach USD 843 M, demonstrating 3.5x growth.
In 2020, 3% of all Filipino e-commerce, USD 150 M worth of transactions, was attributed to BNPL. The Buy Now, Pay Later payments will account for about 7% of all e-commerce payment methods by 2025. The ongoing consumer demand and rising number of providers are both fueling the growth of the BNPL segment. The results of the Group’s survey confirm the demand for such payment methods. 42% of respondents said they often cannot pay with their own savings for purchases up to PHP 50,000. 17% cannot afford such purchases at all without attracting additional funds.
The growth of the BNPL market speaks of its convenience for the un- and underbanked population. In the Philippines, BNPL platforms are accelerating rapidly, mirroring the trend throughout the Southeast Asia region. Meanwhile, the other existing companies are also implementing Buy Now, Pay Later to diversify their services. The growth of e-commerce, high usability and full digitalization of the process will ensure rapid growth of the “Buy Now, Pay Later” segment, accompanied by a significant increase in its market share compared to other methods of payment.
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ABOUT:
Headquartered in Singapore, UnaFinancial is a group of companies, which provides fintech services in 8 markets of Asia and Europe. Founded by entrepreneur Sergey Sedov in 2013, the group focuses on providing modern finance solutions for the underserved by the traditional banking system. All products of the group are built completely in-house using artificial intelligence, machine learning, and data-driven technologies to provide precise and comprehensive risk management, comfort, and speed for customers, and efficiency for the business. For the time of operation, the group has served more than 15 M customers and provided financing for USD 1.2 Bn.
UnaPay
At the end of 2020, the group broadened the range of its digital lending solutions with the launching of UnaPay in the Philippines. UnaPay is designed to address the immediate spending needs of the customers. It has marked the transition from short-term consumer lending to an expanded product line, which includes salary loans, Buy Now/Pay Later service and software for online banking. The Group intends to expand the reach of UnaPay to scale the provided services for launch in other countries of the Group’s presence.
