Four out of ten Filipinos using 'buy now, pay later' (BNPL) services always use it as a tool for budget planning and management, according to a new study from in-app and in-store financial solutions provider UnaCash.
The study, conducted through an online survey of UnaCash clients, users of other services, and non-users, further confirms the popularity and recognition of BNPL services in the Philippines, with 49.6% of respondents having heard of or used it.
Among respondents familiar with BNPL, 38% say they consider using it monthly, 29% say they plan to use it at least once every six months, and 26% plan to use it at least once a year.
Reasons for use include an urgent need for a specific product without the availability of funds (37%), an even distribution of expenses in the long term (23%), the simplicity and convenience of using BNPL (20%), the ability to purchase products without relying on future funds (13%), and, lastly, the instant gratification for a high-value product (7%).
UnaCash's Study underscores the strategic adoption of BNPL among Filipino consumers, dispelling the notion that it's solely used for impulsive purchases. This highlights its role as a financial ally, not just a payment method, in managing personal finances.
In contrast, 53.3% of respondents who first learned about BNPL from the survey say they will consider using BNPL services every month.
This demonstrates an underlying interest in BNPL and its relevance in the market. Another 26.7% said they intend to use such services once every six months. 13.3% prefer to potentially use BNPL services once a year, and only 6.7% showed interest in the payment method only partially.
The study also showed that 93.3% of respondents in the category would embrace this payment solution for urgent purchases in case of insufficient funds (93.3%) and acquiring high-value items immediately without the need to save in advance (40%). Despite having zero to limited experience using this payment solution, 86.7% perceive BNPL as an effective budgeting tool.
"As BNPL continues to gain traction in the Philippines, it is clear that it can also be perceived as a safety net for unforeseen financial needs, aside from an effective planning and budgetary tool," Ocampo added.
The survey findings are also in line with separate internal data from UnaCash, which suggests that customers belonging to a middle class income bracket are "often in need of additional resources for purchases like smartphones (36%), appliances (30%), furniture (30%), and laptops (4%), highlighting the calculated approach Filipinos take to managing their finances and practicing good spending habits.
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