BNPL market sees rapid growth in Philippines

CEBU, Philippines —  The Buy Now, Pay Later (BNPL) market in the Philippines has experienced rapid growth, with at least one in four Filipinos trying the service between 2018 and the end of 2024.

Data from UnaCash revealed that 28.4 million Filipinos had used BNPL services by the end of 2024, reflecting a 40 percent increase from 20.3 million unique users recorded in 2023.

The Philippines ranked second in Southeast Asia in terms of BNPL penetration relative to its population, trailing only Singapore, where 31.36 percent (1.9 million users) of its 6.05 million population used BNPL services.

Malaysia ranked third, with 22.09 percent (8.15 million users), followed by Thailand at 18.72 percent (13.46 million users) and Indonesia at 17.89 percent (50.30 million users).

When it comes to digital commerce users opting for BNPL, Singapore again led with a 32.30 percent adoption rate, followed closely by the Philippines at 30.36 percent.

Indonesia, Malaysia, and Vietnam followed with 23.51 percent 22.09 percent and 19.74 percent, respectively.

The data highlights how BNPL has become a preferred payment option for many Filipinos, driving growth in the digital marketplace.

UnaCash’s internal research shows that most BNPL purchases in the Philippines are focused on gadgets and electronics, with mobile devices being the top choice. As technology continues to advance, demand for these products is expected to sustain the momentum of BNPL adoption.

“Filipinos are clearly embracing the flexibility and convenience that buy now, pay later services offer. Businesses are leveraging this strategy to improve customer accessibility and satisfaction,” said Erwin Ocampo, head of product at UnaCash.

Looking ahead, UnaCash projects BNPL usage in the Philippines to increase by 28.39 percent of the total population by the end of 2025. Growth is also expected to be strong among digital commerce users, with a projected 34.24 percent increase in BNPL adoption.

“Flexible payment options are becoming the norm, especially appealing to Gen Z and Millennials,” Ocampo added.

According to Ocampo, partnering with financial service providers will be key for businesses looking to meet evolving consumer demands and achieve long-term success in this competitive landscape.

UnaCash offers people-centric, in-app and in-store digital financial solutions tailored to the evolving needs of Filipinos. Its ‘Buy now, Pay later’ service has been upgraded to include point-of-sale loans, accessible via online and in-store partner merchants.