Fintech
Singapore Buy Now Pay Later Business Report 2022-2028: BNPL Firms are Expected to Slow Down their Expansion Strategy Amid Rising Interest Rates
The “Singapore Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics – Q3 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
BNPL payments are expected to grow by 37.3% on an annual basis to reach US$1,105.2 million in 2022.
Medium to long term growth story of BNPL industry in Singapore remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 19.1% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$804.9 million in 2021 to reach US$3,158.3 million by 2028.
In Singapore, buy now pay later (BNPL) is a small but rapidly growing Fintech sector. One of the major contributors to the growth of the Singaporean BNPL industry has been the increased usage of e-commerce platforms during the global pandemic outbreak. As Singapore continues to move towards a cashless society, BNPL platforms are becoming increasingly popular in the city-state. This popularity is evident from the growing BNPL transactions and year-on-year growth in Singapore.
The publisher expects the growth to continue in the Singaporean BNPL industry, and millennials, which form the largest segment of BNPL users, are expected to drive major transaction value and volume growth over the next three to four years as they have begun to enter into their spending years. Moreover, more BNPL services are expected to pop up in the country as their popularity continues to grow among Singaporean shoppers from the short to medium-term perspective.
To drive sustainable growth in the Singaporean BNPL industry, new guidelines are being developed to better safeguard consumer interests. Notably, the Singapore Fintech Association (SFA) has formed a BNPL working group that consists of members such as Atome, Grab, and hoolah, which will work under the guidance of the Monetary Authority of Singapore (MAS).
Consolidation between BNPL firms is expected to gain rapid momentum as players seek to strengthen their position in the region
Amid the growing competition in the BNPL market, consolidation trends are expected to gain rapid momentum in the region as firms seek to strengthen their position in the industry. Notably, mergers and acquisitions are expected to accelerate in Singapore as firms face headwinds amid rising inflation and interest rates. These trends have started to emerge in the Singaporean market in H1 2022.
- In March 2022, Pace Enterprise (Pace), one of the leading BNPL players in Singapore, announced that the firm had acquired Rely, the home-grown Fintech startup which offers BNPL in the region. This acquisition of Rely will further strengthen Atome’s merchant network.
- As of March 2022, Pace has more than 5,000 point-of-sales across the Asian region. Notably, the firm is on track to meet its goal of one million users by the end of 2022 and is also aiming to have an annualized gross merchandise value of US$1 billion by the end of 2022.
Over the next three to four years, the publisher expects more such mergers and acquisition deals in Singapore and across the Asian region as firms continue to strengthen their position in the market.
BNPL integration platforms are raising a funding round to further accelerate the growth of their platform
The BNPL market worldwide has become increasingly crowded, with more and more players launching the service. These players are then entering into strategic partnerships with merchants to drive adoption among consumers.
However, with so many players entering the space, merchants find it cumbersome to work with several BNPL providers. This has resulted in innovative startups, such as BNPL integration platforms, that integrate several BNPL products into one platform. These innovative startups are raising funding rounds to accelerate their rapid expansion globally.
- In April 2022, Optty, a Singapore-based BNPL service aggregator, announced that the firm had raised US$9 million to launch the platform for retailers. In the stealth mode, the platform was handling 185 integrations with 41 BNPL providers such as Afterpay, Grab, Klarna, Affirm, Scalapay, and Zip. By the end of 2023, the firm plans to integrate more than 100 BNPL brands and digital wallets.
- Notably, the firm reduces the operational time for retailers to just a few minutes, as opposed to when the retailers work with BNPL providers directly, where they wait at least a week for offering their customers with BNPL payment option. Moreover, by offering several BNPL payment methods through the same platform, retailers record more conversion rates and sales.
As the BNPL market continues to evolve and mature over the next three to four years, the publisher expects more such innovative startups to emerge in the global market. This will subsequently drive the market growth from the short to medium-term perspective.
BNPL firms are expected to slow down their expansion strategy amid rising interest rates
During the global pandemic period, BNPL firms recorded strong growth and, as a result, aggressively expanded their operations around the world. However, as central governments around the world hike interest rates, which will eat up profit margins of BNPL firms, the publisher expects the players to slow down their expansion strategy.
- In July 2022, Zip Co (Zip), one of the leading global BNPL firms from Australia, shut down its operation in Singapore. This move is part of the firm’s strategy to preserve cash, which resulted in the slowdown of its expansion strategy.
- Notably, the exit of Zip from the Singaporean market is an indication that the market is entering into a period of consolidation amid the period of high-interest rates globally.
From the short to medium-term perspective, the publisher expects more global BNPL firms to slow down their expansion amid the economic headwinds experienced by businesses across different industries.
Scope
Singapore BNPL Market Size and Spending Pattern
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Singapore Buy Now Pay Later Operational KPIs
- Buy Now Pay Later Revenues, 2019 – 2028
- Buy Now Pay Later Share by Revenue Segments
- Buy Now Pay Later Merchant Commission, 2019 – 2028
- Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
- Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
- Buy Now Pay Later Accounts, 2019 – 2028
- Buy Now Pay Later Bad Debt, 2019 – 2028
Singapore Buy Now Pay Later Market Share Analysis by Key Players (Atome, Hoolah, Rely, Grab, Split)
Singapore Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
- Online Channel
- POS Channel
Singapore Buy Now Pay Later in Retail Shopping: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Singapore Buy Now Pay Later in Home Improvement: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Singapore Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Singapore Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Singapore Buy Now Pay Later in Other: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Singapore Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
- Buy Now Pay Later Sales Uplift by Product Category
- Buy Now Pay Later Spend Share by Age Group
- Buy Now Pay Later Gross Merchandise Share by Income
- Buy Now Pay Later Gross Merchandise Value Share by Gender
- Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis
Companies Mentioned
- Grab PayLater
- Atome
- Hoolah
- rely
- octifi
- FavePay Later
- Split
- Citi Bank
- convertCASH
- BridgerPay
Plug and Play, a global accelerator platform and one of the most active early-stage investors globally, has announced a strategic partnership with Gujarat International Finance Tec-City (GIFT City). Through the partnership, Plug and Play will establish and run the International Fintech Innovation Hub (IFIH), GIFT City’s FinTech Incubator and Accelerator, which aims to foster research and innovation in financial technology, reinforcing GIFT City’s role as a premier global fintech hub.
GIFT City’s MD and Group CEO, Mr. Tapan Ray, said, “Our vision at GIFT City is to drive fintech innovation by creating a climate-resilient, inclusive ecosystem that empowers diverse entrepreneurs and builds workforce competitiveness in emerging technologies. With the support of prominent partners in fintech education and incubation, we are committed to nurturing a new generation of talent that will be well-equipped to meet the needs of an evolving global economy.”
Manav Narang, Head of Financial Services for Plug and Play APAC and Program Lead for the GIFT Incubator and Accelerator added, “We are thrilled to bring Plug and Play’s global expertise to GIFT City. Our vision is to create India’s largest industry-wide fintech program – a collaborative platform where banks, payments corporations, venture capital and corporate venture capital firms, accelerators, and ecosystem partners unite. Together, we aim to catalyze transformative fintech solutions and nurture fintech unicorns that will shape the future of finance in India.”
The program will support fintech startups with resources, mentorship, capital, and networking to navigate and excel globally in the dynamic fintech landscape. The first batch of startups will be unveiled in January 2025.
The post Plug and Play and GIFT City Launch “IFIH,” a Global Fintech Incubator and Accelerator appeared first on .
Doo Group’s brokerage brand, Doo Financial is thrilled to announce its expansion into Indonesia by acquiring a reputable Indonesian broker to expand the business. This move brings its global investment services to local investors. Backed by the strength of Doo Group’s extensive international presence, cutting-edge technology, and 10 years of expertise, Doo Financial is well positioned to support investors at every level.
As a brand encompassing investment services offered by various legal entities within the Doo Group, Doo Financial provides a comprehensive range of global brokerage services. This wide range of products empowers investors to pursue their financial goals.
With a diversified portfolio, Doo Financial empowers investors to navigate various market conditions effectively, manage risks, and focus on long-term growth. This entry into the Indonesian market reflects Doo Financial’s commitment to supporting investors with flexible, high-quality investment options tailored to today’s dynamic financial landscape.
Supervision by International Regulatory Institutions to Ensure Top-Tier Safety
As a global leading finance group, Doo Group has licensed entities regulated by top regulatory authorities worldwide, ensuring a secure and reliable trading environment.
Our global credentials include licenses from the U.S. Securities and Exchange Commission (US SEC), the Financial Industry Regulatory Authority (US FINRA) in the U.S., the Financial Conduct Authority (UK FCA) in the UK, the Australian Securities and Investments Commission (ASIC), the Hong Kong Securities and Futures Commission (HK SFC), Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI) in Indonesia. These licenses enable us to provide secure and reliable financial services globally.
Dedication to Shape the Industry with Innovative Solutions
Doo Financial’s expansion into Indonesia brings advanced technology and a global perspective to empower local investors. As an international investment firm committed to secure and seamless trading, Doo Financial offers a diverse range of products and services to help diversify portfolios and open up new opportunities.
This growth elevates opportunities for Indonesian investors by offering seamless access to global markets and advanced trading platforms within a secure and regulated environment. It broadens investment choices and enhances the trading experience, aligning it with international standards and empowering local investors with comprehensive tools and resources for success.
Driven by unwavering commitment, this growth marks a significant milestone in Indonesia’s investment landscape, equipping our clients with the tools to navigate global markets. We remain dedicated to delivering exceptional service, exploring new opportunities, and driving future breakthroughs. With continued support from the FinTech community, we are excited to innovate and shape the future of finance.
Stay updated with the latest insights from Doo Financial. Join our community of empowered investors and let us be your trusted partner!
E-mail: [email protected]
The post Doo Financial Now in Indonesia: Offering Local Investors A Gateway to Global Markets appeared first on .
Fintech is on an accelerated trajectory of investment, collaboration, and innovation. This pulse tracks the most significant developments in the sector, from high-profile investments to global platform expansions. Each update in this briefing serves as a key indicator of where the industry is headed.
1. European Fintechs Face Regulatory Pressures Amid New Investment Surge
The European fintech sector finds itself at a crossroads with increasing scrutiny and rising costs due to stringent regulations. While investments continue to flow into the continent’s financial technology companies, challenges in meeting new compliance requirements, especially around data privacy and cybersecurity, create a complex landscape for scaling. This tension between opportunity and operational limitations might affect European fintechs’ growth strategies.
Source: Financial Times
2. Shopify, Slack Founders Join Peter Thiel in Fintech Investment Push
Tobi Lütke of Shopify and Stewart Butterfield of Slack, along with investor Peter Thiel, have co-invested in a new fintech initiative that aims to bolster small business access to capital. By merging technology with a streamlined funding model, this new initiative targets underserved SMBs, highlighting a broader trend of high-profile tech leaders pivoting to fintech investment. The participation of Lütke and Butterfield signals increased cross-sector collaboration in fintech, bringing expertise from e-commerce and communication technology into the financial arena.
Source: Yahoo Finance
3. Lean Technologies Raises $67.5 Million to Drive Fintech Innovation in the Middle East
Riyadh-based fintech platform Lean Technologies recently secured a $67.5 million Series B investment round, aiming to expand its operations across the Middle East. This funding reflects growing investor interest in emerging markets and the potential of Middle Eastern fintech to bridge regional gaps in financial services access. As Lean Technologies broadens its service offerings, the funding will support further technological integration and scalability across financial ecosystems in the region.
Source: Fintech Global
4. Apollo Global Management Invests in Fintech for Private Offerings Support
Apollo Global Management has taken steps to enhance its services for private offerings by investing in specialized fintech solutions. This development signifies a growing trend among private equity firms to adopt fintech as a core component in their service expansion, particularly for personalized client services. Apollo’s strategy of integrating fintech solutions into private offerings marks a strategic shift toward digitalization within traditional financial sectors.
Source: Bloomberg
5. Juniper Research Names 2025’s Future Leaders in Fintech
Juniper Research has revealed its picks for the top future leaders in fintech for 2025. This list emphasizes innovation in fields such as AI, open banking, and decentralized finance, highlighting startups that exhibit potential for reshaping industry standards. As these up-and-coming firms push the boundaries of traditional finance, they exemplify the rising tide of next-generation financial technology poised to become industry mainstays.
Source: Globe Newswire
Conclusion
The convergence of seasoned tech giants with fintech, new funding rounds for region-specific platforms, and the rise of future industry leaders underscore the momentum of the fintech sector. Each of these stories reflects a broader narrative: fintech is not only diversifying in services but also rapidly integrating into traditional finance and tech, paving the way for a transformative era.
The post Fintech Pulse: Evolving Fintech Investments and Partnerships Signal Industry Transformation appeared first on HIPTHER Alerts.
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