Already popular in Australia and New Zealand, BNPL is gradually picking up steam in other APAC markets
Buy now pay later (BNPL) is predicted to account for 4.1% of e-commerce payments value in the APAC region by 2026, says the data and analytics company GlobalData.
In 2022, BNPL represented only 1.6% of the e-commerce payments in the region, most popular in Australia and New Zealand. These two countries currently have 20% and 12.5% shares of BNPL payments in online shopping, respectively.
The demand for short-term financing solutions is on the rise as consumers suffer from increasing living costs and high inflation. Therefore, BNPL is becoming increasingly popular among consumers, who do not have access to traditional credit options such as a credit card.
As for APAC, the expected growth will be stimulated by the expansion of BNPL service providers, accelerated demand for flexible payments, and a gradual shift from offline to online sales channels.
Asian markets like Singapore, India and Japan are now seeing high adoption of BNPL services. However, the highest growth potential may be observed in countries like India, with low credit card penetration rates and limited access to formal credit.
Thus, India has seen the fastest jump in BNPL share in the region, from 0.1% of e-commerce sales in 2019 to 3.2% in 2021. It is expected to account for more than 5% in 2022. To cater for the growing demand in India, leading online retailers such as Amazon are offering their own BNPL solutions.