Asia Pacific Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update

This title is a bundled offering combining 11 reports, covering regional insights along with data centric analysis at regional and country level:

Key Insights

Super App Integration is a Key Growth Channel

• Super apps like Grab, Gojek, Alipay, and WeChat drive BNPL adoption by embedding installment payments across multiple services. Users in Southeast Asia and China can use BNPL for a wide range of services, from ride-hailing and food delivery to e-commerce and digital wallets.
• The dominance of super apps in Asia-Pacific's digital economy has created an integrated ecosystem where users can access multiple services on a single platform. These apps leverage BNPL to boost user retention and transaction volume by offering flexible payments for daily services and large purchases.
• BNPL services will become further entrenched within super app ecosystems, providing a significant scaling advantage for providers that secure long-term partnerships. However, independent BNPL players may face challenges competing against super apps that dominate user engagement across multiple services.

Youth-Driven BNPL Growth Focuses on Lifestyle and Experiences

• Millennials and Gen Z consumers across Asia-Pacific increasingly use BNPL for lifestyle and experience-based spending. BNPL is commonly used for fashion, dining, travel, and entertainment expenses in markets like Thailand, Malaysia, and South Korea.
• Younger consumers in these regions have embraced digital-first services and flexible payment models to manage their discretionary spending. Cultural factors, including a preference for "pay-as-you-go" over traditional loans, have influenced demand. Providers also target this demographic with promotions and loyalty programs linked to fashion retailers, restaurants, and travel platforms.
• BNPL adoption among younger consumers will continue to rise, driven by marketing strategies focused on experience-based purchases. Providers that integrate rewards programs and personalized payment features will gain a competitive advantage in attracting and retaining this demographic.

Cross-Border E-Commerce Accelerates BNPL Use

• Cross-border e-commerce is expanding rapidly in Asia-Pacific, with platforms like Shopee, Lazada, and Tmall enabling BNPL for international purchases. Consumers in smaller markets such as Vietnam and the Philippines increasingly use BNPL to access products from neighboring countries.
• The rise of cross-border trade agreements and improved logistics infrastructure have lowered barriers to international shopping. BNPL helps consumers manage the higher costs associated with cross-border purchases, including currency conversion and shipping fees. Regional free-trade initiatives like RCEP (Regional Comprehensive Economic Partnership) have also boosted intra-Asia trade flows.
• Cross-border BNPL will become a critical component of Asia-Pacific's e-commerce ecosystem. Increased cross-border transactions will benefit providers that offer currency-friendly installment plans and integrated payment solutions across multiple markets.

SME Growth is Boosting Offline BNPL Adoption

• Small and medium-sized enterprises (SMEs) across Southeast Asia and India are driving offline BNPL adoption. Local retailers and service providers, including electronics stores and medical clinics, offer point-of-sale (POS) installment options through providers like Pine Labs and BillEase.
• SMEs often face challenges in offering traditional credit to customers due to banking limitations and high interest rates. BNPL provides a flexible, tech-enabled solution for businesses to increase sales without relying on legacy financing models. The rise of mobile payment infrastructure has also supported rapid adoption.
• Offline BNPL adoption will expand in urban and semi-urban markets as SMEs invest in digital payment infrastructure. Providers that tailor their solutions to small businesses and offer low-fee installment plans will capture significant market share.

BNPL for Education Financing Gains Momentum in South Asia

• BNPL is becoming an essential tool for financing education in countries like India, Bangladesh, and Pakistan. Providers such as ZestMoney are partnering with vocational training centers and universities to offer installment plans for tuition fees and skill development programs.
• The growing demand for upskilling and access to quality education has made financing a critical concern for middle-income families. Traditional education loans often have strict approval requirements, making BNPL a more accessible alternative. Government support for vocational training programs has also encouraged partnerships with fintech providers.
• BNPL for education will see increased adoption as students and training institutions recognize the benefits of installment-based payment structures. Providers focusing on long-term partnerships with educational institutions will create sustainable growth opportunities in this sector.

Travel BNPL Rebounds as Borders Reopen

• Tourism recovery is driving BNPL adoption in the travel sector across Asia-Pacific. Airlines like AirAsia and travel agencies like Traveloka offer installment plans for flights, vacation packages, and accommodations to meet rising demand.
• Countries across Asia-Pacific have lifted most travel restrictions, leading to a surge in both domestic and international tourism. However, rising travel costs have prompted consumers to seek installment-based payment options to spread expenses over time.
• BNPL for travel will continue to expand, supported by partnerships with hospitality and tourism operators. Providers that offer tailored installment plans for frequent travelers and loyalty program members will gain a foothold in this market segment.

Competitive Landscape and Regulatory Developments

Current State of the BNPL Market

• E-commerce and Super App Integration: BNPL services are widely integrated into e-commerce platforms like Lazada, Shopee, and Flipkart, as well as super apps such as Grab and Gojek. Providers offer tailored repayment options to attract tech-savvy millennials and first-time digital borrowers.
• Regional Variations: In Australia, BNPL adoption is driven by early market entrants like Afterpay and Zip. Southeast Asian markets like Indonesia and Malaysia are seeing rapid growth, driven by financial inclusion initiatives and collaborations with digital wallets. India’s market is expanding due to the rise of fintech players offering no-cost EMI options for essential purchases.
• Growing Focus on Financial Inclusion: Providers increasingly target rural and underbanked populations in emerging markets like India and Indonesia. Flexible installment plans are designed to meet the needs of informal sector workers and small businesses, helping bridge the financial services gap.

Key Players and New Entrants

• Key Players: Leading providers across the region include Afterpay (Australia), PayLater (Grab) (Southeast Asia), and ZestMoney (India). These players benefit from strong partnerships with regional e-commerce giants and super apps, providing seamless payment solutions across various sectors.
• New Entrants: Fintech startups like Hoolah (Singapore) and Kredivo (Indonesia) are expanding their presence through strategic collaborations with local retailers. Global providers like Klarna are also entering key markets like Australia and India to capitalize on the growing BNPL demand.

Recent Launches, Mergers, and Acquisitions

• Afterpay’s Expansion in Offline Retail (Australia): In 2023, Afterpay extended its services to physical retailers across Australia, partnering with electronics and fashion chains. This move aims to strengthen its omnichannel presence and boost adoption among in-store shoppers.
• Grab’s PayLater Expansion (Southeast Asia): Grab expanded its PayLater service to additional markets, including Vietnam and the Philippines, offering flexible payment options for ride-hailing, food delivery, and e-commerce purchases. This initiative is designed to enhance Grab's super-app ecosystem.
• ZestMoney’s Partnership with Flipkart (India): In mid-2023, ZestMoney deepened its collaboration with Flipkart, allowing users to access zero-interest BNPL options for big-ticket purchases such as electronics and home appliances.
• Kredivo’s Funding Round (Indonesia): In 2023, Kredivo secured significant funding to support its expansion into new Southeast Asian markets, including Thailand and Vietnam. This move positions Kredivo as a regional leader in BNPL services.

Anticipated Competitive Dynamics

• Super App Competition: Super apps like Grab, Gojek, and Paytm are expected to further integrate BNPL services into their ecosystems, creating bundled offerings that increase user engagement across multiple services, such as transportation, food delivery, and bill payments.
• Technology and Personalization: Providers will likely invest heavily in AI-driven personalization to improve credit risk assessment and tailor repayment options. This will enhance customer experience and reduce default rates, particularly in emerging markets with limited credit histories.
• Expansion into Non-Retail Sectors: BNPL providers are increasingly targeting sectors like healthcare, education, and travel. By offering installment plans for medical expenses, tuition fees, and travel bookings, they aim to diversify their revenue streams and capture a broader customer base.

Scope

BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Revenue Analysis

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Buy Now Pay Later Operational KPIs & Statistics

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

BNPL by Purpose

• Convenience - Short Term Loans
• Credit - Long Term Loans

BNPL by Business Model

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

BNPL Analysis by Channel

• Online Channel
• POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Home Improvement: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Travel: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Media and Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Services: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Automotive: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Monthly Expense Segments

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the Buy Now Pay Later industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of BNPL Market Dynamics in the Asia-Pacific: Understand emerging opportunities and future direction of the BNPL market, key drivers, and trends. Benefit from a detailed market segmentation with 75+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape in BNPL sector with key players and market share in Asia-Pacific. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the BNPL sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.