Home Top News Filipinos use BNPL services to manage budgets — study

Filipinos use BNPL services to manage budgets — study

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ALMOST half or 40% of Filipinos use buy now, pay later (BNPL) services to manage their budgets, a survey by UnaCash showed.

An online survey of 115 individuals, which included UnaCash clients, users of other services, and non-users, showed that 49.6% of respondents heard of or used BNPL services, while 37.4% have heard about BNPL services but have not used it, the online loan app said in a statement on Tuesday.

In terms of familiarity with BNPL, 38% of the respondents said they think about using these services monthly, 29% said they plan to use them at least once every six months, while 26% intend to use them at least once a year.

The top reason cited by respondents for using BNPL at 37% was having an urgent need for a specific product without the availability of funds.

This was followed by having an even distribution of expenses in the long term (23%), BNPL’s simplicity and convenience (20%), the ability to purchase products without relying on future funds (13%), and the instant gratification of a high-value product (7%).

UnaCash said the results of its online survey showed an underlying interest in BNPL and its relevance in the market.

“Our findings highlight the calculated approach Filipinos take to manage their finances and practice good spending habits, and dispel the assumptions that BNPL is used for impulsive purchases. It also sheds light on the strategic adoption of BNPL among Filipino consumers, highlighting its role as a financial ally rather than a mere payment method,” UnaCash Product Head Erwin G. Ocampo said.

Meanwhile, 53.3% of respondents who first learned about BNPL services from the survey said they will consider using these on a monthly basis, while 26.7% said they intend to use them once every six months.

On the other hand, 13.3% said they would potentially use BNPL services once a year, while 6.7% did not show any interest.

Almost all or 93.3% of respondents in this category said they will use BNPL services for urgent purchases in case of insufficient funds, while 40% intend to tap them to acquire high-value items immediately without the need to save in advance.

“Despite having zero to limited experience in using this payment solution, 86.7% perceive BNPL as an effective budgeting tool,” UnaCash said.

“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,” Mr. Ocampo added.

UnaCash added that the survey’s findings were in line with its internal data that showed customers belonging to a middle class are often in need of additional resources for purchases like smartphones (36%), appliances (30%), furniture (30%), and laptops (4%). — A.M.C. Sy

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