The buy now, pay later (BNPL) market in Southeast Asia is set to exceed US$50 billion ($66.9 billion), a report by Una Financial (formerly Robocash Group) found.
Indonesia is projected to lead, with US$16.8 billion of BNPL transactions by 2027, representing a 209% increase from 2024.
The Philippines and Malaysia are expected to experience the fastest growth between 2024 and 2027, with the Philippines projected to grow by 235% and Malaysia by 215%.
On the other hand, Singapore’s BNPL market is projected to grow to just US$2.9 billion by 2027, challenged by its established financial system and access to traditional loans.
Una Financial’s estimates revealed that by 2023, BNPL had been adopted by 20.6% of adults in Southeast Asia. In Singapore, BNPL adoption reached 31.3%, ahead of the Philippines at 27% and Malaysia at 24.4%.
In terms of transaction volume, Southeast Asia’s BNPL market reached US$14.7 billion in 2023. Indonesia led with US$4.28 billion in transactions, followed by Thailand (US$2.91 billion), Vietnam (US$2.34 billion), Philippines (US$1.97 billion), Malaysia (US$1.86 billion) and Singapore (US$1.3 billion).
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Una Financial’s analysts note that Southeast Asia is characterized by a young and tech-savvy population. Its high concentration of Gen Z consumers, who are generally open to adopting new financial technologies, has fuelled demand for BNPL, the analysts add.
“This payment option has gained traction due to its seamless alignment with the shopping habits of Gen Z, providing them an alternative to traditional banking and credit systems,” they say.
