The Philippines Buy Now Pay Later Gross Merchandise Value is Expected to Reach $9.9 Billion by 2028

DUBLIN, Nov. 3, 2022 /PRNewswire/ -- The "Philippines Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to  ResearchAndMarkets.com's offering.

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.

Medium to long term growth story of BNPL industry in Philippines remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 36.9% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$835.6 million in 2021 to reach US$9,903.2 million by 2028.

Like other Southeast Asian countries, the proliferation of buy now pay later (BNPL) payment method made its way to the Philippines during the global pandemic. An increasing number of Filipino consumers turned to digital payment methods, which resulted in consistent adoption of BNPL, especially in the e-commerce industry.

While the payment method recorded strong growth in e-commerce transactions during the pandemic, the pent-up travel demand is expected to become the next growth driver for the BNPL industry as more and more Filipinos are planning to travel in 2022. As a result, the publisher expects BNPL providers to expand their reach in the Filipino travel and tourism industry from the short to medium-term perspective.

As the market continues to evolve and grow in the Philippines, the publisher expects the competition in the space to grow further 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 point of view.

BNPL players are raising investment rounds to expand their loan portfolio in the Philippines

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

• In April 2022, BillEase, one of the leading BNPL players in the country, announced that the firm had raised US$20 million in a debt financing round from Lendable. The debt financing round comes after the firm raised US$11 million in its Series B funding round in January 2022, which was led by BurdaPrincipal Investments.
• The firm plans to use the April 2022 investment to further expand its loan portfolio in the country as the demand for deferred payment methods continues to grow among Filipinos. Notably, the firms offer users the ability to borrow PHP 40,000, which can be paid back in 6 months.

Company has worked with 700 shops nationwide, including well-known brands like Samsung, Lazada, and Philippine Airlines.

As the rivalry in the market in the Philippines continues to intensify over the next three to four years, the publisher anticipates that more businesses will launch funding rounds.

BNPL firms are targeting the travel industry amid the pent-up travel demand in the Philippines

Over the last two years, the travel and tourism sector has been one of the worst affected sectors, as travelers globally were confined to their homes amid the pandemic restrictions. However, with 2022 projected to be the year for the recovery of the travel and tourism industry, BNPL firms are targeting the sector to drive their growth. For instance,

• Atome Philippines, one of the leading Southeast Asian BNPL firms, 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 the partnership, Filipino travelers can use the BNPL service offered by Atome to pay for their domestic travel accommodations in three installments.

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

BNPL firms are partnering with payment processing platforms to boost deferred payment acceptance among more merchants

One of the strategies adopted globally by BNPL providers is entering into strategic partnerships with payment processing platforms. This allows them to get more merchants onboard, thereby increasing the acceptance of their BNPL payment method among more merchants. BNPL firms adopt a similar strategy in the Philippines. For instance,

• In July 2022, Atome Philippines entered into a strategic collaboration with PayMongo, a Manila-based online payments processing platform. This partnership will allow Atome to increase the acceptance of its BNPL product at more merchants across the country, thereby driving its transaction value and volume in the Philippines.
• Notably, PayMongo has a merchant network of more than 10,000 in the country. This means customers can use the deferred payment option at more retailers in the Philippines. Being one of the fastest-growing Fintech in the Philippines, PayMongo is expected to partner with more merchants. This means that Atome will further increase its merchant partner network from the short to medium-term perspective in the Philippines.

The publisher anticipates BNPL providers to significantly strengthen their merchant partner network in the Philippines over the next three to four years as competition intensifies.

Scope

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

Philippines BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Philippines Buy Now Pay Later Operational KPIs

• Buy Now Pay Later Revenues, 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 & Other Income, 2019 - 2028
• Buy Now Pay Later Accounts, 2019 - 2028
• Buy Now Pay Later Bad Debt, 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 Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Philippines Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise 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 through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.
• Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.
• Get Insights into Consumer Attitude and Behaviour: Drawing from 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 about this report visit https://www.researchandmarkets.com/r/tf7jiq

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