The analysts at UnaFinancial have studied the eCommerce trend and growth potential of Buy Now, Pay Later in the Philippines. The eCommerce market in the Philippines is forecasted to rise 2.5 times reaching $12billion by 2025. The share of Buy Now, Pay Later payment methods will grow from 3% in 2020 to 7% in 2025, equalling nearly $843million.
In 2025 Philippine eCommerce is expected to increase 2.5 times amounting to $12billion in the 5-year period. The growth of eCommerce will have a positive effect on all digital payment methods, BNPL included. The BNPL services will develop organically, mirroring the growth of eCommerce. Thus, the segment will rise by 40% a year, growing $140million annually. By 2025, the BNPL payment method in the Philippines will reach $843million, demonstrating 3.5x growth.
In 2020, 3% of all Filipino eCommerce, $150million worth of transactions, was attributed to BNPL. The Buy Now, Pay Later payments will account for about 7% of all eCommerce 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 eCommerce, high usability and full digitalisation 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.