Filipinos warming up to ‘buy now pay later’ payment option, says UnaCash
Filipinos are warming up to the “buy now pay later” (BNPL) payment option with one in three users of this option transacting up to P5,000 in purchases, mainly of electronics and household appliances, according to UnaCash
UnaCash, which offers credit caters to the unbanked through its mobile application, surveyed 92 respondents, of whom nine in every 10 are its clients.
Results also show that one in every four (26 percent) BNPL users ring up P5,001 to P10,000 worth of products, while one in every five (19 percent) spend P10,001 to P20,000.
UnaCash found that an average BNPL purchase is about 42 percent of respondents’ average monthly income, which is P32,000.
The age of respondents average at about 37 years, which is older than the average age of employed Filipinos—about 32 years.
“In general, however, [the respondents’ profile] corresponds to the objective picture, adjusted for a higher level of material security that allows older clients to actively use modern fintech solutions,” UnaCash said in a statement.
Durable goods dominate the type of products bought through BNPL, representing 39 percent of total purchases by respondents.
Other goods bought through BNPL include household and interior items (21 percent), food (15 percent), medicines and medical services (7 percent), cosmetics and perfumes (6 percent), travel vouchers (5 percent), and goods for hobbies and entertainment (4 percent).
Among BNPL users, 96 percent do their online shopping mainly through a smartphone, especially when BNPL services are included in the payment options of online stores.
Among BNPL users, three in every five (61 percent) do so because they don’t have money to pay fully; one in every five (20 percent) pay by borrowing from friends and relatives; and 14 percent pay with a credit card.
As of October 2022, UnaCash has signed up 780,000 users of its mobile app, which is being downloaded at an average of 50,000 times per month.
According to Research and Markets, consumers in Southeast Asia including the Philippines are taking to BNPL through established e-commerce platforms such as Shopee, Lazada and Traveloka as well as ride-hailing companies like Grab and GoJek.
BNPL services have emerged as an alternative credit payment for consumers, enabling them to make purchases without paying the total amount upfront. INQ
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