Online payment processing platform Paymongo taps Atome Philippines to expand its reach of Buy Now Pay Later services. The partnership enables PayMongo’s more than 10,000 merchant networks in the Philippines to offer their customers flexible deferred payment options, with no additional annual or service fees as an alternative checkout payment option.
Cash payments fell below 50% of the point of sale (POS) share in 2021 and will decline to less than one-third share of transaction value by 2025, according to the 2022 Global Payments Report by FIS WorldPay. Digital and mobile payments will absorb the bulk of that spend, said the report.
“With the growing trend toward digital payments and the appeal of zero-interest payment options, especially among digital-native customers, we’re confident this partnership will help our merchants grow sales and delight both new and returning customers,” said Miel Pahati, head of Partnerships, PayMongo.
At the same time, BNPL payment adoption is expected to grow steadily in the Philippines, recording a CAGR of 50.9% during 2022-2028 according to researchandmarkets.com. BNPL Gross Merchandise value in the country will increase from $383 million in 2021 to reach US$ 9476.8 million by 2028. The certainty and transparency of BNPL repayment and credit terms, as well as, aversion to high interest fees have led to BNPL’s growing popularity, especially among millennials and Gen Z consumers.
Founded in 2019, PayMongo is one of the fastest-growing fintech companies in the Philippines. PayMongo offers a quick and fully online onboarding process and seamless API integration with retail websites or apps, which allow them to accept digital payments such as credit and debit cards, online banking, e-wallets, and now buy now pay later, during checkout.
“Our partnership with PayMongo in the Philippines will accelerate the acceptance of flexible deferred payment options and will support thousands of merchants in enabling a superior, secure checkout experience for consumers, in-store and online,” said Jeremy Wong, head of Strategic Partnerships at Atome. “This, in turn, will optimize customer conversion, increase average orders and repeat sales.”
Atome launched in the Philippines in October 2021. It enables customers to split their shopping bills with flexible deferred payment options, with no additional annual or service fees. Atome has grown to partner more than 500 online and offline retailers in the Philippines.