BNPL to still account for 2% of local spending by 2027: Report

It finds Gen Zers, young millennials among bigger users of buy now, pay later’ method

- Chor Khieng Yuit

"Buy now, pay later" (BNPL) will remain as one of the payment methods in Singapore, together with digital wallets and credit and debit cards, according to Worldpay's 2024 Global Payments Report.

The payments technology and solutions company said that by 2027, BNPL will account for 2 per cent of total spending - e-commerce and point of sale transactions unchanged from 2023.

In comparison, the use of digital wallets, such as Apple Pay, Google Wallet, GrabPay and Shopee Pay, is expected to increase year over year. By 2027, digital wallets will account for 45 per cent of total spending - e-commerce and point of sale transactions - from 24 per cent in 2023.

The total spending via digital wallets will grow from $41 billion in 2023 to $89 billion in 2027, Worldpay said.

The firm said that by 2027, credit card usage will drop to 29 per cent of total spending (from 37 per cent in 2023) while debit cards will account for 13 per cent of all spending (from 18 per cent in 2023).

In 2023, Singapore consumers spent $3.4 billion online and instore using BNPL services from third-party providers like Atome and Grab PayLater, banks and retailers.