GlobalData's analysis shows BNPL as an emerging credit option for ecommerce in APAC

An analysis made by GlobalData’s unveils that the APAC ecommerce market is set to grow at a compound annual growth rate of 17.6% from USD 1.2 trillion in 2016 to USD 3.6 trillion in 2023. With rise in demand for consumer financing and growing ecommerce sales, this service has emerged as a major short-term borrowing tool for consumers, as it offers consumers the flexibility to pay for their purchases at later dates. Unlike traditional credit cards or consumer loans, there is no fee if payments are made on time.

Several BNPL solutions in the region have thrived during the pandemic. For instance, Australia-based BNPL solution provider Afterpay has reported global sales of USD 10.1 billion in the first half of fiscal year ended 31 December 2020, a year-on-year 112% growth. It also added nearly 23,000 new customers daily to its platform in the same period.  

In countries like India, where there is low credit card penetration and limited access to formal credit, BNPL has huge potential. LazyPay allows pay later option across 250 merchant websites and apps. Online retailer Amazon introduced its own deferred payment solution in April 2020.