‘Buy Now, Pay Later’ to comprise 7% of PH e-commerce transactions in 2025: UnaFinancial

The scheme is expected to reach US$843m in 2025. 

The "Buy Now, Pay Later (BNPL)" payment transaction is expected to increase to US$843m in 2025, comprising about 7% of all e-commerce markets in the Philippines from 3% in 2020 as the online market is seen to grow 2.5 times more, analysts at UnaFinancial said.

The e-commerce industry is expected to grow 2.5 times more in 2025, reaching US$12b, affecting all digital payment methods including BNPL.

“The BNPL services will develop organically, mirroring the growth of e-commerce. Thus, the segment will rise by 40% a year, growing US$140m annually. By 2025, the BNPL payment method in the Philippines will reach US$843m, demonstrating 3.5x growth,” UnaFinancial said.

In 2021, 3% of e-commerce transactions worth US$150m was traced to BNPL and is expected to reach 3.8% in 2021, and eventually reach 7% in 2025.

“The ongoing consumer demand and rising number of providers are both fueling the growth of the BNPL segment,” it said. 

UnaFinancial said the result of its survey confirmed that demand for the payment method, with 42% of the respondents said they cannot pay with their own savings for purchases up to P50,000, whilst 17% cannot afford said purchases without having additional funds.