SINGAPORE: According to UnaFinancial’s estimates, by 2023, BNPL had been adopted by 20.6% of adults in Southeast Asia. In Singapore, its adoption reached 31.3%, in the Philippines – 27%, and in Malaysia – 24.4%. Indonesia, Vietnam, and Thailand follow, with approximately one-fifth of adults in each country opting for BNPL. Collectively, the Philippines and Indonesia accounted for two-thirds of the region’s BNPL users in 2023, underscoring their central role in Southeast Asia’s BNPL landscape.
In terms of transaction volume, the region’s BNPL market reached $14.7 billion in 2023. Indonesia led with $4.28 billion in transactions, followed by Thailand ($2.91 billion), Vietnam ($2.34 billion), the Philippines ($1.97 billion), Malaysia ($1.86 billion), and Singapore ($1.3 billion).
Looking forward, analysts predict that BNPL transactions will continue to grow rapidly across Southeast Asia, reaching $53.2 billion by 2027. They comment:
“Southeast Asia is characterized by a young and tech-savvy population. Its high concentration of Gen Z consumers, who are generally open to adopting new financial technologies, has fueled demand for BNPL. This payment option has gained traction due to its seamless alignment with the shopping habits of Gen Z, providing them an alternative to traditional banking and credit systems.”
Indonesia is projected to be a leader with $16.8 billion of BNPL transactions by 2027, marking a 209% increase from 2024. While Indonesia’s BNPL potential is the highest, realizing this growth will take more time compared to Malaysia and the Philippines.
Malaysia is expected to reach $11.3 billion with a 215% growth rate from 2024. Its large Gen Z population (39%) could fuel demand, while a mature banking infrastructure may moderate BNPL’s expansion.
The Philippines is anticipated to show the fastest growth at 235%, from $2.45 billion in 2024 to $8.2 billion in 2027. It is driven by an exceptionally young population – nearly half of whom are Gen Z. Moreover, insufficient access to traditional banking positions the country as one of Southeast Asia’s most promising BNPL markets.
Thailand, Vietnam, and Singapore present a more moderate outlook. Thailand’s BNPL growth is expected to be slower, contributing $8.2 billion by 2027, as traditional banking remains the main consumer financing source. In Vietnam, BNPL remains an emerging trend. The market is forecast to reach $5.9 billion, supported by a growing cashless payments ecosystem. Finally, Singapore’s BNPL market, at a projected $2.9 billion, is challenged by its established financial system and access to traditional loans.
