Southeast Asia’s BNPL market to reach $53.2b by 2027

Malaysia, the Philippines, and Indonesia are the most promising markets.\

Southeast Asia’s buy now pay later (BNPL) market will reach $53.2b by 2027, growing from just $14.7b in 2023, according to estimates by UnaFinancial.

Over 1 in 5 or 20.7% of adults in the region have used the service. In Singapore, almost 1 in 3 or 31.3% have adopted BNPL.

The Philippines and Malaysia followed, with 27% and 24.4% of adults having used BNPL services. Approximately a fifth of adults in Indonesia, Vietnam, and Thailand have used the service, UnaFinancial said.

The Philippines and Indonesia accounted for two-thirds of the region’s BNPL users in 2023.

In terms of transaction value, Indonesia made up the lion’s share with $4.28b in BNPL transactions as of 2023. This is followed by Thailand ($2.91b), Vietnam ($2.34b), the Philippines ($1.97b), Malaysia ($1.86b), and Singapore ($1.3b).

Indonesia is projected to be a leader with $16.8b of BNPL transactions by 2027, or a threefold (209%) increase from 2024.

Whilst Indonesia’s BNPL potential is the highest, the Philippines and Malaysia are expected to experience faster growth.

Malaysia is expected to reach $11.3b in BNPL transaction value in three years’ time, or a 215% growth rate.

The Philippines is anticipated to show the fastest growth at 235%, from $2.45b in 2024 to $8.2b in 2027.

Both Malaysia and the Philippines benefit from their young population. In Malaysia, BNPL growth may be tempered by its mature banking market, according to UnaFinancial.