Singapore Buy Now Pay Later (BNPL) Market Size More Than Doubles to Touch USD 2.45 Billion by 2029

Published | 21 September 2023

Singapore buy now pay later (BNPL) market is flourishing because of the rising e-commerce industry in the city state, convenience and flexibility, and growing population of millennials and Gen Z.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Singapore buy now pay later (BNPL) market size at USD 1,145.54 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the Singapore buy now pay later (BNPL) market size to grow at a significant CAGR of 11.5% reaching a value of USD 2,454.33 million by 2029. Major growth drivers for the Singapore buy now pay later (BNPL) market include an increasing use of e-commerce platforms, especially during the pandemic. This surge is further propelled by the millennial population, who are entering their prime spending years and tend to be cautious spenders due to past experiences with market volatility during their formative years. BNPL, offering a secure payment method without hidden fees or interest charges, aligns well with their preferences. Also, Singaporeans have identified cashback rewards and promotional incentives as influential factors driving BNPL adoption. Hoolah, for instance, has established partnerships with prominent e-commerce players like Zalora and Pomelo, offering attractive discounts. Similarly, Rely entices consumers with generous cashback rewards. As Singapore progresses toward a cashless society, BNPL platforms are gaining prominence within the city-state. BNPL provides consumers with a flexible approach to short-term financing, allowing them to spread payments for goods over time without incurring interest charges. This payment method was first introduced in Singapore in 2017, and it has been further popularized by prominent local BNPL firms like Hoolah, Rely, Pace, and Atome. However, regulatory concerns around BNPL services and economic instability or recessions are anticipated to restrain the overall market growth during the forecast period.

Singapore Buy Now Pay Later (BNPL) Market – Overview

Singapore buy now pay later (BNPL) system is a payment mechanism that enables customers to make purchases, both online and in physical stores, without the immediate requirement of paying the full upfront sum. The growth of this market in Singapore is propelled by factors such as ongoing digitization, wider merchant acceptance, escalating patronage among the younger demographic, and the emergence of new enterprises providing financing via BNPL services. Particularly appealing to younger consumers, BNPL services offer a range of benefits, encompassing the ability to acquire high-value items like laptops and smartphones, as well as facilitating payments for everyday essentials such as stationery products. Also, a significant portion of BNPL users in Singapore tends to utilize the service for smaller-scale purchases. Milieu's findings reveal that roughly 48% of BNPL transactions amount to SGD 100 (USD 72) or less. The prevailing sentiment among Singaporeans leans toward debt avoidance, with a substantial 70% of them concurring that substantial expenses should be settled in full rather than through installment payments. Notably, those BNPL users reporting higher average transaction sizes typically belong to higher income brackets.

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Impact of COVID-19 on Singapore Buy Now Pay Later (BNPL) Market

COVID-19 pandemic had a positive impact on the Singapore buy now pay later (BNPL) market. Initially, there was a surge in demand for BNPL services as consumers sought flexible payment options for online purchases during lockdowns. However, economic uncertainties and changes in consumer spending patterns led to increased caution in spending. Regulatory authorities also began scrutinizing the BNPL sector more closely, emphasizing responsible lending practices. Despite the initial boom, the pandemic-induced economic instability and increased regulatory attention posed challenges to the BNPL market's sustained growth. Balancing convenience and responsible lending practices remained crucial for its future trajectory.

Singapore Buy Now Pay Later (BNPL) Market – By Enterprise Type

Based on enterprise type, the Singapore buy now pay later (BNPL) market is split into Large Enterprises and Small & Medium Enterprises (SMEs) segments. The large enterprises segment held a higher market share in the Singapore BNPL market by the enterprise type in 2022. Large enterprises typically have more substantial financial resources and operational capacity, making it easier for them to adopt and implement buy now pay later (BNPL) systems. They can offer BNPL services as an attractive payment option to their customers, enhancing their competitiveness. Moreover, large enterprises often have a broader customer base and higher transaction volumes, which further drive the adoption of BNPL. Their ability to invest in advanced payment solutions and marketing strategies also positions them favorably in the BNPL market, contributing to their larger market share.

Competitive Landscape

Major players operating in the Singapore buy now pay later (BNPL) market include Atome, Hoolah, GrabPay, Rely, Razer Fintech, Quadpay, Oxicash, Split, and CashShield. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Singapore Buy Now Pay Later (BNPL) Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Singapore Buy Now Pay Later (BNPL) Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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