In the Philippines, the gross value of goods bought now and paid later is expected to reach $9.9 billion by 2028

DUBLIN, November 3, 2022 /PRNewswire/ — The “Business and Investment Opportunities in the Philippines Buy Now Pay Later – Over 75 KPIs on Buy Now Pay Later trends by end-use sectors, operational KPIs, market share, retail product dynamics and data Consumer Demographics – Q3 2022 Update” report has been added to from ResearchAndMarkets.com offer.

Research and Markets Logo

According to the publisher, BNPL payments in the country are expected to grow by 80.2% on an annual basis to reach US$1,505.6 million in 2022.

Mid to Long Term Growth Story of the BNPL Industry in Philippines stay strong. The adoption of BNPL payment is expected to grow steadily over the forecast period, registering a CAGR of 36.9% during the period 2022-2028. The gross value of BNPL’s goods in the country will increase from $835.6 million in 2021 to reach US$9,903.2 million by 2028.

As in other Southeast Asian countries, the proliferation of BNPP payment methods (buy now, pay later) has made its way to The Philippines during the global pandemic. An increasing number of Filipino consumers have turned to digital payment methods, which has led to steady adoption of BNPL, especially in the e-commerce sector.

While the payment method has seen strong growth in e-commerce transactions during the pandemic, pent-up travel demand is expected to become the BNPL industry’s next growth driver as more Filipinos plan to travel in 2022. As a result, the publisher expects BNPL’s suppliers to expand their reach in the Philippine travel and tourism industry in the short to medium term.

As the market continues to evolve and grow in The Philippines, the publisher expects competition in the space to continue to grow over the next three to four years. Moreover, global players are also expected to expand their presence in the country as the market becomes more attractive from an investment perspective.

BNPL players raise investment rounds to expand loan portfolio by The Philippines

To expand their BNPL product offering to more consumers in The Philippines, companies are raising investment rounds from global and regional investors, venture capital and private equity firms. For instance,

  • In April 2022BillEase, one of the country’s leading BNPL players, announced that the company had raised $20 million in a Lendable debt financing round. The debt financing round comes after the company has raised $11 million in its Series B funding round in January 2022which was led by BurdaPrincipal Investments.

  • The company plans to use the April 2022 investment to expand its loan portfolio in the country as demand for deferred payment methods continues to grow among Filipinos. In particular, the companies offer users the possibility of borrowing PHP40,000which can be repaid in 6 months.

The company has worked with 700 stores nationwide, including well-known brands like Samsung, Lazada and Philippine Airlines.

While market rivalry in The Philippines continues to ramp up over the next three to four years, the publisher expects more companies to launch funding rounds.

BNPL firms target travel industry amid pent-up travel demand in The Philippines

Over the past two years, the travel and tourism sector has been one of the hardest hit sectors as travelers around the world have been confined to their homes amid pandemic restrictions. However, with 2022 set to be the year of recovery for the travel and tourism industry, BNPL companies are targeting the sector to drive growth. For instance,

  • Atome Philippines, one of Southeast Asia’s leading BNPL companies, announced in March 2022 that it had entered into a strategic partnership with Agoda, the global travel platform, to offer deferred payment services in the Philippines. Under this partnership, Filipino travelers can use the BNPL service offered by Atome to pay for their domestic travel accommodation in three instalments.

The publisher expects more strategic collaborations between BNPL players and travel platforms in The Philippines as the travel and tourism industry continues to show strong growth recovery in 2022.

BNPL Companies Partner with Payment Processing Platforms to Drive Acceptance of Deferred Payments at More Merchants

One of the strategies adopted globally by BNPL suppliers is to form strategic partnerships with payment processing platforms. This allows them to attract more merchants, thereby increasing acceptance of their BNPL payment method by more merchants. BNPL firms adopt a similar strategy in The Philippines. For instance,

  • In July 2022Atome Philippines has entered into a strategic collaboration with PayMongo, a Manilaonline payment processing platform. This partnership will allow Atome to increase the acceptance of its BNPL product at more merchants across the country, thereby increasing its value and transaction volume by The Philippines.

  • Notably, PayMongo has a merchant network of over 10,000 in the country. This means customers can use the deferred payment option at more retailers in The Philippines. To be one of the fastest growing Fintechs The Philippines, PayMongo should partner with more merchants. This means that Atome will further expand its network of merchant partners in the short and medium term by The Philippines.

The publisher expects BNPL’s suppliers to significantly strengthen their network of merchant partners in The Philippines over the next three to four years as competition intensifies.

Scope

This report provides an in-depth, data-driven analysis of the Buy Now, Pay Later industry in Philippines. Below is a summary of the main market segments:

Philippines BNPL Market Size and Spending Pattern

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Philippines Buy Now Pay Later Operational KPIs

  • Revenue from buy-it-now and pay-later, 2019 – 2028

  • Buy Now Pay Later Share by Revenue Segments

  • Buy Now Pay Later Merchant Commission, 2019 – 2028

  • Buy now, pay later, missed payment fee revenue, 2019 – 2028

  • Buy Now Pay Later Pay Now and Other Revenues, 2019 – 2028

  • Accounts Buy Now Pay Later, 2019 – 2028

  • Buy Now Pay Bad Debt Later, 2019 – 2028

Philippines Buy Now Pay Later Market Share Analysis by Key Players

  • (TendoPay, Cashalo, BillEase, Plentina, Zip)

Philippines Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

  • online channel

  • POS channel

Philippines Buy Now, Pay Later in Retail: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Philippines Buy Now Pay Later in Home Improvement: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Philippines Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Philippines Buy Now, Pay Later in Healthcare and Wellness: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Philippines Buy Now Pay Later in Other: Market Size and Forecast

  • Gross Commodity Value Trend Analysis

  • Analysis of trends in the average value per transaction

  • Trading volume trend analysis

Philippines Buy Now Pay Later Analysis by Consumer Attitude and Behavior

  • Buy now, pay later Increased sales by product category

  • Buy now Pay later Split spend by age group

  • Buy now, pay later Share of gross merchandise by revenue

  • Buy now, pay later Share of gross value of goods by gender

  • Buy Now Pay Later Rationale for Adoption Gross Goods Value Analysis

Reasons to buy

  • In-depth understanding of Buy Now Pay Later market dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics with essential KPIs such as gross commodity value, volume, and average value per trade.

  • Overview of Opportunities by End-Use Sectors – Obtain market dynamics by end-use sectors to assess emerging opportunities in various end-use sectors.

  • Develop market-specific strategies: identify growth segments and target specific opportunities to formulate BNPL’s strategy; assess key market-specific trends, drivers, and risks in the BNPL industry.

  • Gain insights into consumer attitude and behavior: Drawing on proprietary survey results, this report identifies and interprets key Buy Now, Pay Later KPIs, including spend by age, gender and income level.

  • Market share by key players

For more information on this report, visit https://www.researchandmarkets.com/r/tf7jiq

Media Contact:

Research and Markets
Laura Woodsenior
[email protected]

For EST office hours, call +1-917-300-0470
For USA/CAN call toll free +1-800-526-8630
For GMT office hours call +353-1-416-8900

US Fax: 646-607-1907
Fax (outside the US): +353-1-481-1716

Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg

Quote

Quote

Show original content:https://www.prnewswire.com/news-releases/the-philippines-buy-now-pay-later-gross-merchandise-value-is-expected-to-reach-9-9-billion-by-2028- -301667829.html

SOURCE Research and Markets