Buy now, pay later to make up 8% of e-commerce transactions in 2025: FIS

Digital payment methods chip away at card use and bank transfers.

Buy now, pay later (BNPL) market is projected to grow at a compound annual growth rate (CAGR) of 40% through 2025 to become the fastest growing online payment method in Singapore, reports FIS.

BNPL made up only 4% of the e-commerce transaction value in 2021, but is expected to climb 4 percentage points to make up 8% of total value by 2025.

Online payments continued to thrive in Singapore in 2021 and is expected to grow stronger until mid-decade as the local e-commerce market rapidly grew, according to FIS’ latest Global Payment Report. The local e-commerce market is expected to rise at 16% CAGR through 2025 and hit US$10.7b.

Whilst credit and charge cards remained the leading online payment in 2021–making up 42% of the total e-commerce transaction values–digital wallets are on track to chip away at its dominance and make up 31% of transaction values by 2025.

In 2021, digital wallets made up 29% of all e-commerce payments.

Outside of e-commerce sales, point of sales (POS) transaction value in Singapore also rebounded strongly in 2021, growing 23%. This is the largest expansion amongst all APAC markets, FIS said.

Credit and charge cards remain the leading in-store payment method and are predicted to maintain their dominance in POS transactions through 2025.

But mobile wallets are growing increasingly popular in-store and is projected to narrow the gap with card-use, to make up 23% of POS value by 2025 compared to cards’ 37% share by mid-decade.

Cash use will continue to decline to only 13% of total value in 2025, according to FIS.

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Singapore Buy Now, Pay Later

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