Report Overview

The rising e-commerce industry in Singapore, convenience and flexibility, and growing population of millennials and Gen Z are projected to propel the expansion of the Singapore buy now pay later (BNPL) market during the forecast period between 2023 and 2029.

Singapore Buy Now Pay Later (BNPL) Market - Industry Trends & Forecast Report, 2029

Singapore buy now pay later (BNPL) market size was estimated at USD 1,145.54 million in 2022. During the forecast period between 2023 and 2029, the size of Singapore buy now pay later (BNPL) market is projected to grow at a 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.

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 towards 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.

Singapore Buy Now Pay Later (BNPL) Market

Growth Drivers

Booming E-commerce sector in India

In Singapore's thriving e-commerce landscape, "buy now, pay later" (BNPL) platforms have gained prominence. As Singapore transitions towards a cashless society, BNPL services have surged in popularity, offering consumers a flexible financing option for online purchases, characterized by interest-free installments. These services appeal to a diverse demographic, especially risk-conscious millennials. Singaporeans are increasingly adopting BNPL, attracted by incentives like cashback rewards from platforms like Hoolah and Rely. Surprisingly, most BNPL usage in Singapore is for smaller transactions, with about 48% of purchases totaling SGD 100 or less. This aligns with the prevalent sentiment among Singaporeans, who prefer to pay upfront for significant expenses to avoid accruing debt. Despite concerns about potential societal risks, such as overspending, Singapore's e-commerce sector continues to flourish. The BNPL market plays a pivotal role in Singapore's dynamic e-commerce landscape.

Restraints

Regulatory Concerns around BNPL Services

Regulatory concerns surrounding BNPL services have a restraining effect on the Singapore buy now pay later (BNPL) market. While BNPL gains popularity, Singaporean authorities are mindful of potential risks, especially regarding overspending and debt accumulation. The Monetary Authority of Singapore (MAS) has plans to review regulatory approaches to ensure responsible lending practices. These concerns can lead to potential regulatory changes that might impact the BNPL landscape. As Singapore progresses towards a cashless society, addressing these regulatory challenges will be crucial to sustaining the growth of the BNPL market and ensuring consumer protection and financial stability.

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

Segmental Coverage

Singapore Buy Now Pay Later (BNPL) Market – By Channel

By channel, the Singapore buy now pay later (BNPL) market is bifurcated into Online and Point of Sale (POS) segments. The online channel segment holds a higher share in the Singapore buy now pay later (BNPL) market by channel during the forecast period, primarily due to the growing preference for online shopping among consumers. The convenience and flexibility offered by BNPL services align well with the e-commerce experience, making it a popular choice for online shoppers. Also, the ease of integrating BNPL options into online checkout processes and the availability of multiple BNPL providers contribute to the segment's higher market share. As more consumers embrace digital shopping platforms, the online channel continues to be a key driver of BNPL adoption and growth in Singapore.

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 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.

Singapore Buy Now Pay Later (BNPL) Market – By End User

Based on end user, the Singapore buy now pay later (BNPL) market is divided into Consumer Electronics, Fashion & Garment, Healthcare, Retail, and Media & Entertainment segments. The healthcare segment held the highest share in the Singapore buy now pay later (BNPL) market by end user. Healthcare expenses can often be significant and unexpected, which makes BNPL a valuable payment option for individuals seeking medical services, treatments, or healthcare products. BNPL allows patients to manage their medical bills conveniently by spreading payments over time, reducing the financial burden of immediate payment. Additionally, healthcare providers and facilities are increasingly offering BNPL options to attract patients and enhance the overall healthcare experience. This alignment of patient needs and healthcare industry offerings has led to the healthcare segment's dominance in the BNPL market.

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.

Recent Developments

• In March 2022 - Pace Enterprise (Pace), a prominent player in the Singapore BNPL industry, acquired Rely, a local FinTech startup providing BNPL services in the region. The acquisition of Rely was aimed at enhancing and expanding Atome's network of merchants.

Scope of the Report

By Channel

• Online

• Point of Sale (POS)

By Enterprise Type

• Large Enterprises

• Small & Medium-sized Enterprises (SMEs)

By End User

• Consumer Electronics

• Fashion & Garment

• Healthcare

• Retail

• Media & Entertainment