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 - Q2 2024 Update

The BNPL payments in the region are expected to grow by 17.1% on an annual basis to reach US$178.9 billion in 2024.

The medium to long-term growth story of the BNPL industry in the region remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 12.0% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$152.8 billion in 2023 to reach US$315.8 billion by 2029.The rising consumption and demand for credit are expected to drive the growth of the buy now pay later industry across Asia Pacific over the medium term. Firms are entering into strategic partnerships to launch new products to cater to the growing demand for BNPL products in Asia Pacific. In 2024, the publisher expects startups to raise funding from venture capital and private equity firms to scale their product offerings.

Key Developments in the BNPL Sector in the Asia Pacific Region

The BNPL sector in The Asia Pacific has seen significant launches and expansions due to increasing demand for flexible payment solutions. Key developments include:

Product Launches and Innovations

Grab's PayLater: Grab continues to enhance its BNPL offerings, allowing users to consolidate payments for rides, food deliveries, and online purchases. This service has become increasingly popular in Southeast Asia, particularly among younger consumers seeking flexible payment options.

Cashalo's Expansion: In the Philippines, Cashalo has been actively promoting its BNPL product, which allows users to make purchases and pay later, often in partnership with local merchants. This service targets consumers who may not have access to traditional credit.

Atome's Growth: Atome, a BNPL provider based in Singapore, has reported significant growth in merchant partnerships and transaction volumes. The company has seen a 20-30% increase in conversions and average order sizes, indicating strong consumer adoption of its services.

Split's BNPL Services in Malaysia: Split, a BNPL provider in Malaysia, has gained traction by offering zero-interest payments and flexible instalment plans. The company has reported significant transaction growth and partnerships with over 250 local retailers, showcasing the demand for BNPL solutions in the region.

The developments above signify a resilient and dynamically evolving BNPL landscape in Asia, presenting substantial prospects for established entities and new market participants.

Strategic Partnerships

In the last six months, the Buy Now, Pay Later (BNPL) sector in Asia has witnessed several significant partnerships aimed at expanding services and enhancing customer offerings. Here are the key partnerships that have emerged:

Visa and Standard Chartered Bank: This partnership aims to extend BNPL solutions in Malaysia and Singapore, leveraging Visa's payment technology and Standard Chartered's banking expertise to enhance consumer access to flexible payment options.

Fundiin and Pharmacity: In Vietnam, Fundiin has formed a strategic alliance with Pharmacity, a prominent pharmacy chain. This collaboration is designed to facilitate BNPL services for consumers purchasing health and wellness products, thereby expanding Fundiin's reach in the Vietnamese market

LOTTE Finance and OpenWay: LOTTE Finance Vietnam partnered with OpenWay to launch a new BNPL product. This collaboration utilizes OpenWay's Way4 payment system to manage transactions, instalment calculations, and integration with third-party services, enhancing the BNPL offerings in Vietnam.

These partnerships reflect the growing trend of cooperation between financial institutions and technology providers to meet the increasing demand for flexible payment solutions in the Asia Pacific.

Mergers and Acquisitions

Over the past six months, there have been a few notable mergers and acquisitions in the Buy Now, Pay Later (BNPL) sector across the Asia Pacific.

ShopBack Acquires Hoolah - In May 2024, ShopBack, a leading shopping and rewards platform in Asia, announced the acquisition of Hoolah, a Singapore-based BNPL startup. This strategic move allows ShopBack to integrate BNPL offerings into its e-commerce ecosystem, providing consumers with a seamless shopping experience and flexible payment options. The acquisition is expected to drive further growth and adoption of BNPL services in the region.

Grab Acquires Paytm's BNPL Business - In July 2024, Grab, Southeast Asia's leading super app, announced the acquisition of Paytm's BNPL business in India. This move allows Grab to leverage Paytm's existing customer base and merchant network to further expand its BNPL offerings in the Indian market. The acquisition is part of Grab's strategy to strengthen its financial services portfolio and provide a wider range of payment options to its users across Asia.

Recent mergers and acquisitions highlight the increasing importance of BNPL in the Asian market and growing competition among major players to capture a larger share. Integrating BNPL services into existing e-commerce platforms and merchant networks is expected to drive further adoption and growth in the region.

Regulatory Changes

Several notable regulatory and government policy changes have impacted the BNPL sector in the Asia Pacific Region.

Australia: The Australian Securities and Investments Commission (ASIC) has been actively monitoring the BNPL sector. In September 2019, ASIC made a product intervention order banning short-term lending models to protect consumers from predatory lending practices.

Singapore: The Monetary Authority of Singapore (MAS) has been evaluating the need for a tailored regulatory framework to mitigate potential risks in the BNPL market. MAS has also guided the Singapore Fintech Association to launch a BNPL Working Group to develop a code of conduct for all BNPL operators.

Malaysia: The Malaysian Central Bank, Bank Negara Malaysia (BNM), announced plans to pass a consumer credit act in 2022 to strengthen consumer credit activities, including BNPL.

India’s Draft Guidelines for BNPL: The Reserve Bank of India (RBI) has proposed draft guidelines for BNPL providers, focusing on the need for better regulatory oversight and risk management. The guidelines aim to bring BNPL products under a more structured framework to ensure consumer protection and financial stability.

China’s Regulation on Consumer Finance: In China, regulatory authorities have tightened rules on consumer finance, including BNPL services. New regulations include stricter credit assessment requirements and limits on the amount of credit extended. These measures are intended to curb rising consumer debt and ensure more responsible lending practices.

Philippines’ SEC Guidelines: The Securities and Exchange Commission (SEC) of the Philippines has started to develop guidelines for BNPL providers. These guidelines are designed to regulate the sector more effectively, focusing on transparency and fair lending practices.

Thailand’s Ministry of Finance Policies: Thailand’s Ministry of Finance has introduced new policies aimed at regulating BNPL services. These policies include requirements for clearer communication of terms to consumers and ensuring that BNPL providers adhere to responsible lending standards.

These regulatory developments and industry-led initiatives demonstrate the increasing focus on consumer protection and responsible lending practices in the rapidly growing BNPL sector across the Asia Pacific.

The BNPL payment industry in Asia Pacific has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This title is a bundled offering, combining 11 reports (638 tables and 825 charts).

Country reports in this bundled offering provide in-depth analysis of Buy Now Pay Later industry. Below is a summary of key market segments offered at country level:

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in through 55 tables and 71 charts. Below is a summary of key market segments:

BNPL Market Size and Spending Pattern, 2020-2029

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

Buy Now Pay Later Revenue Analysis, 2020-2029

• 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, 2020-2029

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

BNPL by Purpose, 2020-2029

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

BNPL by Business Model, 2020-2029

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

BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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
• Average Monthly Expense segments

Reasons to buy

• Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020-2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.
• Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.
• Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.
• Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.
• Create profitable and proactive business plans by utilising market research and a forward-looking study of Asia Pacific BNPL market spend and significant prospects.