Market Size of Asia Pacific Buy Now Pay Later Service Industry
Study Period | 2020-2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 155.72 Billion |
Market Size (2029) | USD 335.04 Billion |
CAGR (2024 - 2029) | 16.56 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Asia Pacific Buy Now Pay Later (BNPL) Services Market Analysis
The Asia Pacific Buy Now Pay Later Service Market size is estimated at USD 155.72 billion in 2024, and is expected to reach USD 335.04 billion by 2029, growing at a CAGR of 16.56% during the forecast period (2024-2029).
Buy Now Pay Later is emerging as a credit-facilitating service in the Asia Pacific region. Despite a continuous rise in the banking population in the region which exists at around 75%, the availability of credit facilities for small households and low-income category groups is still a challenge. As a remedy to this problem, BNPL services have emerged as credit facilitators providing short and long-term run credit to borrowers with different interest and payment options. With intra-regional variation existing in the region Japan, Hong Kong, South Korea, and New Zealand have emerged as countries with the highest penetration of credit cards, and India, China, and Indonesia exist as markets with low credit card penetration creating a credit gap in Asia Pacific and providing opportunities for the BNPL service providers to increase their service penetration and further investing in the region.
Share of Buy Now, Pay Later payments in e-commerce payments is observing a continuous rise in the region with Australia and New Zealand having BNPL transaction share of 10% in e-commerce. Rising fintech and the adoption of digital transactions has resulted in a rise of BNPL payment products offering by various financial intermediaries. BNPL allows users to pay transaction amounts in interest-free tranches over a period of time or through EMI payments on long-term loans with interest. Increasing fintech companies in India and China is expanding the launch of BNPL services products and this trend is expected to observe a continuous growth over the period. Among few service providers Atome, Rely, and Fundiin in Singapore and Openpay, lime pay, and pay right in Australia have emerged as major APAC startups offering BNPL services in the region.
Asia Pacific Buy Now Pay Later (BNPL) Services Industry Segmentation
BNPL has emerged as an alternative finance payment method that allows the user to make a purchase and make its payment over a period of time with different options of interest-free payments for short-term credit and fixed interest payments in the form of fixed EMI for long-term credit. This product resulted in an increase in purchasing power of the people in the Asia Pacific region.
Asia Pacific's Buy Now Pay Later Services Market is segmented by channel, enterprise, end user, and by country. By channel the market is segmented by online, and pos. By Enterprise the market is segmented into large enterprises, small, and medium Enterprises. By End User the market is segmented into consumer electronics, fashion and garments, healthcare, leisure and entertainment, Retail, and others. By Country, the market is segmented into China, India, Australia, Singapore, Hongkong, and the Rest of Asia-Pacific. The report offers market size and forecasts for the Asia Pacific buy now pay later services market in value (USD) for all the above segments.
By Channel | |
Online | |
POS |
By Enterprise | |
Large Enterprises | |
Small & Medium Enterprises | |
Others |
By End User | |
Consmer electronics | |
Fashion & garments | |
Healthcare | |
Leisure & entertainment | |
Retail | |
Others |
By Country | |
India | |
China | |
Japan | |
Australia | |
New Zealand | |
Rest of Asia Pacific |
Asia Pacific Buy Now Pay Later Service Market Size Summary
The Asia Pacific Buy Now Pay Later (BNPL) services market is experiencing significant growth, driven by the increasing adoption of digital transactions and the expansion of e-commerce in the region. BNPL services are emerging as a crucial credit-facilitating solution, particularly in countries with low credit card penetration such as India, China, and Indonesia. These services offer flexible payment options, allowing consumers to make purchases and pay in installments, thereby addressing the credit gap in the region. The market is characterized by a diverse range of fintech companies and startups, with key players like Atome, Rely, and Fundiin in Singapore, and Openpay, Limepay, and Payright in Australia, leading the charge in providing BNPL solutions. The rising popularity of BNPL is particularly notable in Australia and New Zealand, where a significant portion of e-commerce transactions are conducted using this payment method.
The BNPL market in Asia Pacific is further bolstered by the region's rapidly growing digital lending market, especially in emerging economies like India, which is witnessing substantial year-on-year growth. Australia stands out as a leader in BNPL adoption, with a notable share of e-commerce payments made through this method, driven by younger demographics such as Gen Z and Gen Y. The fragmented fintech landscape in Asia Pacific is seeing both domestic and international players expanding their presence to capitalize on the growing demand for BNPL services. Notable developments include the launch of BNPL services by companies like Kuaishou in China and CRED in India, which are enhancing the accessibility and convenience of digital payments across various platforms. As the market continues to evolve, the increasing number of BNPL providers and the rising financial inclusion are expected to further propel the growth of BNPL services in the region.
Asia Pacific Buy Now Pay Later Service Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Lack Of Credit Availability In Small Transaction Driving BNPL Services
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1.2.2 Rise In The Value Of Digital Transaction In Asia Pacific
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1.3 Market Restraints
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1.3.1 BNPL Availability To Users With Poor Credit History Affecting The Market
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1.3.2 High Rate Of Interest In Long Term Credit Affecting Demand
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1.4 Market Opportunities
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1.4.1 Customized BNPL Product Demand With Expansion Of Service In Different Assets
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1.5 Industry Attractiveness - Porters' Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitutes
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1.5.5 Intensity of Competitive Rivalry
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1.6 Technological Innovations in the Asia Pacific Buy Now Pay Later Service Market
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Channel
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2.1.1 Online
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2.1.2 POS
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2.2 By Enterprise
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2.2.1 Large Enterprises
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2.2.2 Small & Medium Enterprises
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2.2.3 Others
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2.3 By End User
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2.3.1 Consmer electronics
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2.3.2 Fashion & garments
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2.3.3 Healthcare
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2.3.4 Leisure & entertainment
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2.3.5 Retail
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2.3.6 Others
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2.4 By Country
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2.4.1 India
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2.4.2 China
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2.4.3 Japan
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2.4.4 Australia
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2.4.5 New Zealand
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2.4.6 Rest of Asia Pacific
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Asia Pacific Buy Now Pay Later Service Market Size FAQs
How big is the Asia Pacific Buy Now Pay Later Service Market?
The Asia Pacific Buy Now Pay Later Service Market size is expected to reach USD 155.72 billion in 2024 and grow at a CAGR of 16.56% to reach USD 335.04 billion by 2029.
What is the current Asia Pacific Buy Now Pay Later Service Market size?
In 2024, the Asia Pacific Buy Now Pay Later Service Market size is expected to reach USD 155.72 billion.