Financial solutions provider UnaCash expects the share of electronics and gadgets bought through e-commerce to grow by 7.9 percent to P397.7 billion in 2024, fueled by the growth in the adoption of ‘buy now, pay later’ (BNPL) services.
“The development of BNPL in the Philippines will be closely tied to e-commerce. Online purchases on electronics, gadgets, furniture and home appliances, reflects the dynamic nature of the online retail sector, making 2024 seem like a fruitful time for solution providers like UnaCash,” said UnaCash head of product Erwin Ocampo.
The success of the electronics and gadgets segment in e-commerce highlights the mutually beneficial relationship between BNPL services and e-commerce, he said.
Data from UnaCash showed that as of February 2024, 70.17 percent of purchases made in the platform were for electronics and gadgets.
UnaCash noted a 12-percent increase BNPL usage in its app. Filipino online buyers use BNPL for shopping online at least once a weekly, a reflection of the growing popularity of this financial service in the local market.
The company also predicts growth of BNPL usage on food and beverage at 11 percent to P114.1 billion, 10 percent on appliances at P100 billion and fashion and beauty at 8.5 percent to P93.5 billion.
Data analytics based on the app’s usage showed that the leading products purchased online by Filipinos were dominated by fashion at 65 percent, beauty and personal care at 47 percent and food and beverage at 35 percent.
Consumer interest on app usage aligns with the demographic between 25 and 34 which is the largest user group of e-commerce platforms.
While these categories have high consumer engagement, the market share differs, with electronics, gadgets and physical media leading at 45 percent, followed by food and personal hygiene at 25 percent, furniture and appliances at 16 percent and fashion at 10 percent.