'Buy now, pay later' transactions on the rise in APAC | Retail Asia
, India

'Buy now, pay later' transactions on the rise in APAC

The payment option has big potential in markets like India with low credit card penetration.

Buy now, pay later (BNPL) transaction has emerged as a viable credit option amongst e-commerce purchases in Asia Pacific as several payment companies are now offering this service, according to a report from GlobalData.

“BNPL provides consumers with the flexibility to pay for their purchases at later dates. In addition, unlike traditional credit cards or consumer loans, there is no fee if payments are made on time,” GlobalData’s lead banking and payments analyst Ravi Sharma said.

The payment option is considered to be popular in Australia with 5.8 million accounts, as the entry of global players further fostered growth in the country. Other Asian markets like China and India have also registered similar trends.

In countries like India in particular, where there is low credit card penetration and limited access to formal credit, BNPL has huge potential, the report stated.

“With consumer spending on the rise, BNPL concept presents a huge potential in the APAC region and has the potential to challenge the existing credit models,” Sharma said.

The e-commerce market in the region is set to grow at a compound annual growth rate of 17.6% from $1.2t in 2016 to $3.6t in 2023.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Retail Asia in your inbox
It will launch data centres in the Philippines and Indonesia.
Manila, Central Luzon and Bicol have been the key target regions for new pharmacies.
It is looking to penetrate residential areas in Tier 1 cities.
It is looking to open four locations in the city by end-2022.
It is expected to be completed by 2024.
Lecoo aims to launch 600 stores in the coming year.
For instance, Tous Les Jours is selling two to three times more than competitors.
The country’s live commerce market has been growing at a rapid pace.
It plans to expand to 400 from 138 stores in the market in the long term.
Real household spending is not expected to hit pre-pandemic levels by 2021.
This will mark the largest M&A deal in the country in H2 2021.
It will have 38 retail leases expiring by March 2022.
It has also expanded its one-hour shopping service to lower-tier cities.
It is testing its delivery service in selected locations in Tokyo.