SINGAPORE: Singapore’s Buy Now, Pay Later (BNPL) industry is on track to experience significant growth over the next decade.
According to a recent report by fintech company ROSHI, the sector is projected to expand from SGD 1.6 billion (USD 1.2 billion) in 2022 to SGD 4.9 billion (USD 3.7 billion) by 2032, with increasing adoption driven by favourable financing terms and shifting consumer preference away from traditional credit options.
The report reveals that transactions through BNPL services have surged, with average purchase amounts now 70% higher than typical credit card purchases.
Among consumers, 42.1% cited BNPL’s favourable terms as their primary reason for using the service, compared to just 17.5% for credit cards.
The findings point to a broader shift in payment habits among Singaporeans, particularly younger consumers who appreciate the easier access and minimal credit checks that BNPL services provide and a general aversion to incurring traditional credit card debt.
In 2022, Singapore’s BNPL market reached a user base of 1.9 million, with forecasts projecting a steady 3% growth by 2027.
This rise mirrors trends seen across Southeast Asia, where demand for flexible payment solutions is reshaping consumer finance.
“We’re seeing similar trends across Southeast Asia, indicating a broader regional shift in consumer financing preferences,” said Trịnh Mai Thanh, lead researcher at ROSHI.
However, ROSHI’s report also highlights a growing need for responsible lending practices.
As BNPL options become more widely available, it urges providers to implement financial literacy programs to ensure consumers make informed borrowing decisions.
This focus on sustainable growth, combined with financial education, will be crucial to the BNPL sector’s continued success in Singapore’s competitive financial landscape.