Singapore BNPL market to reach $4.9b by 2032

BNPL transactions are now 70% larger than average credit card purchases.

Singapore's Buy Now, Pay Later (BNPL) market is projected to grow from $1.6b (US$1.2b) to $4.9b (US$3.7b) by 2032, according to a report by financial technology company ROSHI.

BNPL transactions are now 70% larger than average credit card purchases. 42.1% said they chose BNPL because of better terms, compared to only 17.5% for credit cards.

Additionally, the market’s user base has expanded to 1.9 million Singaporeans in 2022, with a forecasted growth of 3% by 2027. 

The report also noted that younger consumers prefer BNPL due to easier access, minimal credit checks, and an aversion to traditional credit card debt.

"We're seeing similar trends across Southeast Asia, indicating a broader regional shift in consumer financing preferences,” Trịnh Mai Thanh, lead researcher at ROSHI, said.

Moreover, the report emphasises that there is a need for responsible lending practices and financial literacy programs to ensure sustainable growth in the sector.

($1=US$0.76)