Since its introduction in Southeast Asia in 2018, Buy Now, Pay Later (BNPL) has significantly boosted online shopping, especially among younger consumers.
It has also been a lifeline for individuals with limited access to traditional credit.
In countries like Thailand, Vietnam, and the Philippines, where over 30% of the population is unbanked or underbanked, BNPL has become a crucial financial alternative.
And the BNPL industry is booming: payments are projected to reach $15 billion by 2027 from $3.1 billion in 2022.
However, the growing popularity of BNPL has also raised concerns about spiraling consumer debt, informal peer-to-peer loans, social media scams, and broader economic stability.
To address these challenges, leading BNPL providers are taking proactive steps to protect consumers and ensure responsible lending. Learn how they’re navigating this complex landscape in this insightful piece by Lam Le and Jitsiree Thongnoi, published in Rest of World.
