Financing solutions provider UnaCash revealed that the gross merchandise value (GMV) of items bought using buy now, pay later (BNPL) is anticipated to surge by 173 percent by 2024 in the Philippines, driven significantly by an increase in mobile commerce (m-commerce) penetration.
This represents a substantial increase from the GMV of items purchased via BNPL in 2023 of 154 percent; 2022, 178 percent; and, 2021, 118 percent, indicating a clear synergy between the BNPL market and the mobile commerce market.
“BNPL is consistently gaining traction. This can be considered a modern digital-era payment solution, not just in the Philippines. Innovative advancements like point-of-sale loans will enable this payment method to experience remarkable growth in the years to come,” ” said UnaCash president Aleksei Kosenko.
BNPL empowers consumers to purchase products immediately and avail themselves of convenient installment periods. Approximately 15 percent of all online transactions in the Philippines utilize BNPL solutions, further amplifying its influence on consumer purchasing behavior.
The use of m-commerce on wireless devices such as smartphones, smartwatches, or tablets, has doubled over the past 5 years. By the end of 2022, more than half of the Philippine population was actively engaged in mobile commerce, with penetration reaching 55 percent.
In terms of sales, m-commerce experienced an average annual growth rate of 47.4 percent from P243.3 billion in 2018 toP308.7 billion 2022. Its share to total e-commerce in the Philippines is expected to grow by 84 percent in 2024.
The report noted that Philippine e-commerce users are basically individuals aged 25 to 34 years old, followed by 18 to 24 year old clients.