ELECTRONICS AND GADGETS bought online are expected to grow by 7.9% to P397.7 billion this year, partly driven by banks’ “Buy Now, Pay Later” (BNPL) promotions, financial solution provider UnaCash said on Wednesday.
Food and beverage items are alco expected to benefit, with sales projected to increase by 11% to P114.1 billion, followed by appliances at P100 billion (10%) and fashion and beauty at P93.5 billion (8.5%), it said in a statement.
“The development of BNPL in the Philippines will be closely tied to e-commerce,” Erwin G. Ocampo, UnaCash product head, said in the statement. “Online purchases of electronics, gadgets, furniture and home appliances reflect the dynamic nature of the online retail sector, making 2024 seem like a fruitful time for solution providers like UnaCash.”
The company 12% of Filipino internet users avail themselves of BNPL promos when shopping online.
It said fashion dominated the products bought online by Filipinos at 65%, followed by beauty and personal care (47%) and food and beverage (35%).
Electronics, gadgets and physical media had the largest market share at 45%, followed by food and personal hygiene (25%), furniture and appliances (16%) and fashion (10%).
UnaCash noted that as of February, 70.17% of purchases made through it were for electronics and gadgets.
This matched a Visa survey that showed 61% of respondents had used BNPL to buy electronics and gadgets, while 55% used it to buy fashion products.
“This matches with the key online shopping categories, displaying the natural synergy between BNPL and e-commerce,” UnaCash said.
It added that the growth of BNPL use will continue to be aligned with consumer preference for online shopping. — Aaron Michael C. Sy
