The Buy Now, Pay Later (BNPL) market in the Philippines continues to grow, with 28.4 million Filipinos using the service as of the end of 2024, according to data from UnaCash, a financial services provider.
This shows a 40% rise compared to 20.3 million users in 2023. UnaCash noted that at least 1 in 4 Filipinos has tried BNPL services since 2018.
The Philippines also ranked second in Southeast Asia in terms of BNPL usage based on population, following Singapore. The data show that 30.36% of Filipino digital shoppers now use BNPL options.
“Filipinos are clearly embracing the flexibility and convenience that Buy Now, Pay Later services offer, and businesses are embracing this critical strategy to enhance customer accessibility and satisfaction,” said Erwin Ocampo, head of product for UnaCash.
Using mobile phones to shop and buy
The report also noted that most BNPL purchases are for gadgets and electronics, often made using mobile phones. The growing interest in tech products continues to push demand for alternative payment methods like BNPL.
In comparison to other countries in the region, Malaysia recorded an adoption rate of 22.09%, followed by Thailand at 18.72% and Indonesia at 17.89%.
Singapore topped the list with the highest share of digital shoppers using BNPL services at 32.30%, followed by the Philippines, Indonesia (23.51%), Malaysia (22.09%), and Vietnam (19.74%).
Expecting an increase in BNPL users in the Philippines
UnaCash expects the number of BNPL users in the Philippines to grow further, with usage projected to reach 28.39% of the total population in 2025. Among digital commerce users, the rate may increase to 34.24%.
“Flexible payment options are becoming the norm, a main selling point especially among GenZs and millennials,” Ocampo said. “Embracing partnerships with financial services players is a way for businesses to meet the shifting demands of consumers and position themselves for long-term success in the competitive marketplace.”