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 2024 Update

According to the publisher, BNPL payments are expected to grow by 17.1% on an annual basis to reach US$181.3 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$154.8 billion in 2023 to reach US$319.8 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.

The thriving e-commerce sector, in markets like India and Southeast Asia, will also support the growth trajectory of the buy now pay later industry over the medium term. In Asia Pacific, India is expected to lead the regional market growth amid rising adoption of the payment solution. Overall, the publisher maintains a positive growth outlook for the market over the next three to four years.

Visa and Standard Chartered Bank entered into a partnership to bring BNPL to markets across Asia Pacific

Amid the growth demand for credit products like buy now pay later, firms are entering into strategic collaborations to enter new markets, targeting higher gross merchandise value over the next three to four years.

• Visa, in December 2023, entered into a partnership with Standard Chartered Bank to accelerate the delivery of BNPL solutions to the bank's Visa credit cardholders across the Asia Pacific region. The partnership will enable targeted consumers to make use of Visa's installment payment solution at participating stores and e-commerce merchants. Initially, the collaboration will enable credit cardholders in Malaysia and Singapore to make use of the payment service. Going forward, the firms are planning to launch in other markets across the Asia Pacific. The partnership comes at a time when awareness about BNPL solutions is growing rapidly in Asia Pacific.

BNPL startups are raising funding rounds to ramp up technology and drive adoption in India

The credit demand is growing at a rapid rate among consumers in India. The higher inflation and decline in disposable income are driving the credit demand. Consequently, to reach more consumers, BNPL firms are raising funding rounds from venture capital and private equity firms.

• SalarySe, the BNPL-focused financial services app, announced that the firm had raised US$5.25 million in a funding round in January 2024. The capital round was led by Surge Ventures and included participation from other investors like Pravega Ventures. The firm is planning to use the capital for ramping up its technology, while also targeting higher adoption of its product in the Indian market.
• Going forward, SalarySe is also aiming to launch a credit-on-UPI system for salaried employees. Consequently, the firm is entering into strategic collaborations with banking institutions, HR SaaS platforms, and employers. Notably, the National Payments Corporation of India (NPCI), launched the credit line on UPI facility in 2023 in India.

In 2024, the publisher expects more venture capital and private equity funding to enter the BNPL sector in India. This will support innovation and a competitive landscape in the BNPL market over the next three to four years.

Rising consumption and credit demand supporting BNPL industry growth across Southeast Asia

The soaring smartphone and internet usage, coupled with the thriving e-commerce market and a higher percentage of the unbanked population, are offering a fertile ground for the growth of the buy now pay later market in Southeast Asia. While Indonesia is leading the growth of the market, other countries such as Malaysia and the Philippines are also experiencing strong adoption of buy now pay later schemes. This has resulted in new product launches and strategic partnerships in the sector.

• Atome Financial, for instance, revealed that it is renewing a US$100 million debt facility in partnership with HSBC Singapore. This move is aimed at growing its presence in the Philippine market. The collaboration not only supports Atome's expansion efforts but also takes advantage of HSBC Singapore's worldwide network, regional presence, and banking knowledge to enhance Atome's influence and outreach in the Philippine market.
• Fundiin, in November 2023, entered into a strategic partnership with Pharmacity in Vietnam. Fundiin’s presence at Pharmacity, one of the leading retail pharmacy chains having approximately 1000 stores across the country, will enable the BNPL firm to tap into more customers. This will also drive the firm’s gross merchandise value and volume for the BNPL provider. In Vietnam, Fundiin is offering BNPL services across different industry verticals including cinema, fashion, cosmetics, and travel among many others.

These strategic collaborations in the sector are expected to drive the competitive landscape while supporting the growth of the buy now pay later market across Southeast Asia over the medium term.

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 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

• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2020-2029). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.
• Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.
• Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.
• Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.
• Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in Asia Pacific.