The new report from Hamburg-based market intelligence firm yStats.com, “Asia-Pacific Buy Now Pay Later Market and Trends 2023” offers a comprehensive overview of the new developments in the BNPL market in APAC, provides insights into consumer attitudes towards these services and the level of consumer trust in BNPL. As per the report’s findings, the BNPL market continues to display a fairly high growth potential.
BNPL use in APAC is forecasted to continue to increase
According to a projection cited in the yStats.com report, the share of BNPL (Buy Now, Pay Later) in total B2C E-Commerce payments in the Asia-Pacific region is forecasted to more than double by 2026, indicating a continuous interest in the use of this payment method. BNPL ranked among the top 7 payment methods used at least 5 times per month, with a higher share of adults expressing complete trust rather than complete distrust in BNPL services. In China, the BNPL market is expected to experience significant growth until 2025, with nearly 9 in 10 Internet users aged 18-24 using BNPL services. Unlike other countries where younger users dominate the BNPL landscape, the age distribution in China shows a different picture. After the 18-24 age group, Internet users aged 45-54 and 65+ rank second and third in BNPL use, reflecting a varied age distribution of BNPL users in the country.
In Australia, BNPL loans were among the top 3 types of debt held
BNPL sales in Australia increased by approximately one-third from 2021 to 2022, reaching a double-digit value in EUR billion, as reported by yStats.com. With the growing use of BNPL in the country, BNPL debt is also becoming increasingly significant. BNPL loans ranked third among the types of debt held, following credit card and home loans. Despite being one of the most common types of debt, the level of stress or concern over this debt type remains low among users. One reason for the low stress factor can be attributed to the comparison of outstanding balances among various debt types, as BNPL loans had the lowest value of outstanding balances in Australia. However, while the use of BNPL has grown in previous years, a larger share of adults in the country expressed complete distrust rather than complete trust in these services, with Baby Boomers and Gen Z having the smallest share of respondents who completely or somewhat trusted BNPL services.