$5.9 bln projected for Vietnam’s growing BNPL market

Vietnam, Thailand, and Singapore are predicted to see further growth in “Buy Now, Pay Later” (BNPL) services, but at a steady pace.

BNPL is still an emerging trend in Vietnam, and is projected to reach $5.9 billion by 2027, supported by a developing cashless payment ecosystem.

According to UnaFinancial, a fintech company operating in Asia and Europe, 20.6 per cent of adults in Southeast Asia had access to BNPL solutions by 2023.

Singapore boasts the highest adoption rate, at 31.3 per cent, followed by the Philippines at 27 per cent and Malaysia at 24.4 per cent. These three are considered key markets in the burgeoning Southeast Asian BNPL landscape. Meanwhile, in Indonesia, Vietnam, and Thailand, approximately one-fifth of adults have utilized the payment method.

In terms of transaction volume, the regional BNPL market reached $14.7 billion in 2023. Indonesia led with $4.28 billion in transactions, followed by Thailand ($2.91 billion), Vietnam ($2.34 billion), the Philippines ($1.97 billion), Malaysia ($1.86 billion), and Singapore ($1.3 billion).

Looking ahead, analysts predict rapid growth in BNPL transactions across Southeast Asia, reaching $53.2 billion by 2027. Southeast Asia’s young, tech-savvy population, particularly the large number of Gen Z users who are generally open to adopting new financial technologies, is driving demand for BNPL.