Singapore 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 country are expected to grow by 13.5% on an annual basis to reach US$1.19 billion in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 8.8% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$1.05 billion in 2023 to reach US$1.82 billion by 2029.

Key Developments in the BNPL Sector in Singapore

In the past six months, Singapore’s Buy Now, Pay Later (BNPL) sector has seen several significant product launches:

• Atome's BNPL Card: Atome, a leading BNPL provider in Singapore, has reported notable growth in its BNPL card offerings. The company has experienced a monthly growth rate exceeding 20% in its cardholder base, reflecting strong consumer interest. Atome is focused on enhancing its BNPL card by increasing credit limits while maintaining responsible lending practices. This initiative aims to broaden the use of BNPL for various expenses, including utility bills and e-commerce purchases.
• Embedded Insurance Products: Atome Financial, in collaboration with Chubb, is set to launch two insurance products in Singapore: Bill Secure and Shopping Secure. This move is part of Atome’s strategy to diversify its services and offer additional value to its BNPL customers through embedded insurance solutions.
• Expansion of E-commerce Partnerships: Atome also aims to expand its e-commerce partnerships, particularly with platforms like Lazada. This expansion seeks to improve the accessibility of BNPL services for online shoppers, reflecting the growing trend of integrating BNPL options at checkout across various retail platforms.

These product launches and initiatives highlight a robust expansion strategy within Singapore’s BNPL sector, driven by rising consumer demand for flexible payment solutions.

Strategic Partnerships

Over the past six months, several important partnerships have emerged in Singapore's Buy Now, Pay Later (BNPL) sector. Notable collaborations include:

• Visa and Standard Chartered Bank: In December 2023, Visa teamed up with Standard Chartered Bank to extend BNPL solutions to the bank’s credit cardholders in Singapore and Malaysia. This partnership aims to enable eligible consumers to use Visa's installment payment solution at participating stores and e-commerce merchants, thereby improving access to BNPL services.
• Atome and Retail Partners: Atome has been forming alliances with retailers to integrate BNPL services into their platforms. This strategy enhances the shopping experience by offering flexible payment options at checkout across a range of retail categories.
• Grab and E-commerce Platforms: Grab has expanded its Grab PayLater service through partnerships with multiple e-commerce platforms. This integration allows users to use BNPL options while shopping online, aiming to boost transaction volumes and improve customer retention.
• Singtel and Retailers: Singtel has introduced its BNPL service, Singtel PayLater, enabling consumers to purchase mobile phones, home appliances, and personal electronics in interest-free installments. This service is part of Singtel’s broader strategy to enhance its digital payment offerings and attract more customers.

These partnerships illustrate the increasing collaboration between BNPL providers, retail, and financial institutions in Singapore, aimed at broadening the reach and adoption of BNPL services among consumers.

Mergers and Acquisitions

Recent months have seen several significant mergers and acquisitions in Singapore's Buy Now, Pay Later (BNPL) sector:

• Atome's Acquisition of Hoolah: In September 2023, Atome, a prominent BNPL provider in Singapore, announced its acquisition of Hoolah, a competing BNPL company. By integrating Hoolah's merchant partnerships and technology, Atome aims to strengthen its market position and expand its customer base.
• Grab's Strategic Investments: While not involving a direct acquisition, Grab has made substantial investments to expand its BNPL services through partnerships with various retailers and e-commerce platforms. This approach seeks to enhance its GrabPay Later service and increase its market share in the BNPL sector.

These developments highlight a competitive landscape in Singapore’s BNPL sector, marked by strategic acquisitions and partnerships to expand service offerings and market reach. With the BNPL market projected to grow to approximately $1.5 billion by 2024, further consolidation is likely as companies seek to capitalize on the expanding e-commerce ecosystem.

Regulatory Changes

• In the past six months, the Monetary Authority of Singapore (MAS) has implemented several measures to regulate the Buy Now, Pay Later (BNPL) sector:
• Industry Code of Conduct: MAS collaborated with the BNPL industry to establish a code of conduct that outlines clear requirements to protect consumers from excessive borrowing risks. This code aligns with MAS’s existing regulations for unsecured credit products.
• Independent Assessor and Accreditation Trustmark: An independent assessor will evaluate and verify BNPL providers' adherence to the code. Compliant firms will receive an accreditation trustmark and be listed in a BNPL registry, helping consumers identify providers that have implemented necessary safeguards.
• Monitoring and Potential for Stricter Regulation: MAS will monitor compliance with the code closely and be notified if a provider loses its Trustmark due to breaches. The regulator has indicated that it may consider stronger regulatory measures if necessary.
• Proportionate Approach: MAS believes that an industry-led code, which aligns with its expectations, is an effective way to promote compliance. It argues that a more prescriptive regulatory approach could unduly restrict BNPL providers and limit consumer options. BNPL transactions accounted for only 1% of total debit and credit card payments 2022.
• In summary, MAS has adopted a balanced approach by working with the industry to develop a code of conduct while retaining the option to impose stricter regulations to protect consumers in the rapidly growing BNPL sector.

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

Singapore BNPL Market Size and Spending Pattern, 2020-2029

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

Singapore 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

Singapore Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

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

Singapore BNPL by Purpose, 2020-2029

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

Singapore BNPL by Business Model, 2020-2029

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

Singapore BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

Singapore BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Singapore Buy Now Pay Later Market Share Analysis by Key Players

Singapore BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Singapore 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

Singapore 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

Singapore 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

Singapore 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

Singapore 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

Singapore 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

Singapore 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

Singapore 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

Singapore 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 BNPL market spend and significant prospects in Singapore.