The buy-now-pay-later (BNPL) market in Southeast Asia is expected to reach US$53.2 billion by 2027, according to analysts at UnaFinancial.
The region, with its young and tech-savvy population, has seen a rapid increase in buy-now-pay-later adoption, particularly among Gen Z consumers who are open to new financial technologies.
According to the UnaFinancial study, Indonesia is projected to lead the market with US$16.8 billion in buy-now-pay-later transactions by 2027, a 209 per cent increase from 2024. The Philippines is expected to witness the fastest growth at 235 per cent, reaching US$8.2 billion by 2027.
Also Read: Report: BNPL remains popular amongst Indonesian fintech services users
Malaysia is forecast to reach US$11.3 billion, growing at 215 per cent from 2024. Thailand and Vietnam will see more moderate growth, reaching US$8.2 billion and US$5.9 billion, respectively.
Singapore’s buy-now-pay-later market is projected to reach US$2.9 billion by 2027.
The key driving factors:
High Gen Z population: Southeast Asia has a high concentration of Gen Z consumers who are driving the demand for BNPL services.
Alternative to traditional banking: BNPL provides an alternative to traditional banking and credit systems, which are often inaccessible to younger generations.
Growing cashless payments ecosystem: The increasing adoption of cashless payments is further fueling the growth of the BNPL market.
Challenges:
Mature banking infrastructure: In countries like Malaysia, the mature banking infrastructure may moderate the expansion of BNPL services.
Also Read: How BNPL can provide lower-income households with new opportunities
Established financial systems: Singapore’s established financial system and access to traditional loans pose a challenge to BNPL adoption.
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