Philippines 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 18.0% on an annual basis to reach US$2.80 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 11.9% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$2.37 billion in 2023 to reach US$4.91 billion by 2029.The buy now pay later market is poised to grow at an accelerated pace over the medium term in the Philippines. The availability of the payment method at point-of-sale, coupled with the fast-growing e-commerce market, will drive the BNPL industry growth in 2024. To tap into the growth potential, providers are expanding their footprint in the country and the trend is projected to further continue over the medium term. This will drive innovation and a competitive landscape in the Philippines BNPL market. Overall, the publisher maintains a positive growth outlook for the sector in the Philippines from the short to medium-term perspective.

Key Developments in the BNPL Sector in the Philippines

Over the past six months, several key product launches have taken place in the Philippines' Buy Now, Pay Later (BNPL) sector. Notable developments include:

• Atome Financial's BNPL Card: Atome Financial has reported a significant growth in its BNPL card offerings, with a monthly increase of over 20% in its cardholder base. The company focuses on improving its BNPL card to meet customer demand for higher credit limits while maintaining responsible lending practices. This initiative aims to expand the use of BNPL for various expenses, such as utility bills and e-commerce purchases.

These product launches and initiatives highlight a strong expansion strategy in the BNPL sector in the Philippines, driven by rising consumer demand for flexible payment solutions.

Strategic Partnerships

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

• Atome Financial and HSBC Singapore: In August 2023, Atome Financial renewed a US$100 million debt facility in partnership with HSBC Singapore. This collaboration aims to strengthen Atome's presence in the Philippine market by leveraging HSBC’s global network and banking expertise, supporting Atome’s expansion efforts in the region.
• Expansion of E-commerce Partnerships: Atome also seeks to expand its e-commerce partnerships, particularly with platforms like Lazada. This expansion aims to improve the accessibility of BNPL services for online shoppers, reflecting the growing trend of integrating BNPL options at checkout across various retail platforms.
• Atome Financial and Chubb: Atome has partnered with Chubb to introduce embedded insurance products, specifically Bill Secure and Shopping Secure. This partnership aligns with Atome’s strategy to diversify its offerings and deliver additional value to BNPL customers.
• UnaCash’s Merchant Partnerships: UnaCash has onboarded various merchant partners across sectors like appliances, gadgets, and general merchandise. The company plans to increase its merchant partnerships by over 200% in 2024, signaling a significant effort to expand its footprint in the growing BNPL market.

These partnerships highlight a strategic focus on expanding market presence and enhancing service offerings within the rapidly growing BNPL sector in the Philippines.

Mergers and Acquisitions

Over the past six months, there have been significant developments in mergers and acquisitions within the Buy Now, Pay Later (BNPL) sector in the Philippines. Key insights regarding the BNPL landscape include:

• Market Growth and Strategic Collaborations: The BNPL market in the Philippines is projected to experience significant growth, with providers forming strategic alliances to enhance their market presence. These collaborations seek to capitalize on global networks and local expertise, potentially setting the stage for future mergers or acquisitions as companies aim to consolidate in a rapidly changing market.
• Investment in Infrastructure: BNPL providers are investing in infrastructure and strategic alliances to meet the anticipated surge in demand. While this does not directly indicate ongoing mergers or acquisitions, it reflects a trend toward consolidation and collaboration, which could pave the way for such activities.

Although the current search did not reveal specific examples of mergers or acquisitions, the existing strategic partnerships and evolving market conditions suggest a landscape that may soon be poised for consolidation as the BNPL sector grows in the Philippines.

Regulatory Changes

• Over the past six months, the regulatory landscape for the Buy Now, Pay Later (BNPL) sector in the Philippines has been evolving. However, specific regulatory updates were not highlighted in the search results. Key points regarding the current regulatory environment and government policies affecting the BNPL sector include:
• Increased Adoption and Regulatory Focus: The rapid uptake of BNPL services among Filipinos, driven by inflation and the expanding e-commerce market, has brought attention to regulatory frameworks that ensure consumer protection and responsible lending practices. As BNPL transactions become more common, the government will likely consider regulations addressing potential risks associated with these financial products.
• Consumer Protection Concerns: Similar to trends seen in other countries, there are rising concerns regarding consumer protection in the BNPL sector. Issues such as high late payment fees, transparency in product disclosures, and the risk of over-indebtedness are key areas that regulators may focus on to safeguard consumers.
• Global Trends Influencing Local Policies: The Philippines may draw inspiration from regulatory developments in regions like Australia and New Zealand, where governments have started implementing stricter regulations for BNPL products. These reforms aim to provide consumer protections similar to those in traditional credit markets, potentially influencing future policy-making in the Philippines.
• Market Growth and Regulatory Preparedness: With the BNPL market in the Philippines expected to reach approximately $2.29 billion in 2024, regulatory frameworks are needed to support this growth while ensuring consumer protection. The government may need to establish clear guidelines for BNPL providers to operate within a safe and transparent environment.
• Overall, while the search results did not specify recent regulatory changes, the growing adoption of BNPL services and the associated consumer protection concerns suggest that the Philippine government may be preparing to introduce regulations to ensure the sector’s responsible growth.

The BNPL payment industry in Philippines 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 Philippines through 55 tables and 71 charts. Below is a summary of key market segments:

Philippines BNPL Market Size and Spending Pattern, 2020-2029

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

Philippines 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

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

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

Philippines BNPL by Purpose, 2020-2029

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

Philippines BNPL by Business Model, 2020-2029

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

Philippines BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

Philippines BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Philippines Buy Now Pay Later Market Share Analysis by Key Players

Philippines BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Philippines 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

Philippines 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

Philippines 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

Philippines 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

Philippines 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

Philippines 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

Philippines 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

Philippines 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

Philippines 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 Philippines.