Buy Now, Pay Later (BNPL) platforms are gaining popularity here in Singapore. According to Research and Markets, the BNPL industry is expected to garner a market value of USD 1.5 billion in 2024, and this is predicted to increase to USD 2.4 billion in 2029. With such a rich potential for growth and profitability, it is no surprise that quite a number of BNPL entities have emerged.
However, with fierce competition, some players have been unable to hold out after initial operations. Out of the many BNPL platforms since the concept was first introduced in 2017, five were officially accredited in April 2024 and are allowed to display a trustmark to show that they have complied with the rigorous requirements of the BNPL Code of Conduct. However, there are active and trusted BNPL sites that have yet to obtain their accreditation.
Buy now, pay later platforms allow users to split large purchases into affordable, monthly instalments at 0% interest. Instead of charging interest rates, BNPL players instead charge a small administrative or processing fee to each customer upon purchase conversion. Additionally, they also charge a late payment fee of $5 to $30 for each month if bills are not settled in full.
Each BNPL caters to a wide range of merchants, and users will be able to use an app to convert and transaction with that merchant into monthly payments within their budget. In November 2022, the Singapore FinTech Association announced the BNPL Code of Conduct, Among other things, this code of conduct specifies how platforms have the responsibility of protecting consumers from getting into financial difficulties, which is why the maximum amount of outstanding payments for any individual is limited to $2,000.
Some of the BNPL platforms left in Singapore are accredited whilst the rest have yet to seek accreditation. We cannot yet predict when these unaccredited platforms will one day obtain their trustmark, but hopefully this will take place soon.
Thus far, the five accredited BNPL operators include Atome, SeaMoney (which handles ShopeePay), LatitudePay, Grab, and Abnk.ai. Out of these companies, only Atome and Grab have active BNPL apps, whereas SeaMoney’s app is only reserved for use on the Shopee e-commerce platform. LatitudePay, on the other hand, announced that they would be ceasing operations in Singapore from April 19th 2024. Abnk.ai, whilst accredited, seems to not be offering independent BNPL services as of now.
There have been several changes as to the lineup of BNPL platforms seeking accreditation since 2022. Some companies, such as Shopback and Ablr have pulled out from the process, whereas new ones continue to appear. Here are the 5 BNPL brand names that are still active and operating:
Set up in 2016, the Atome platform has a presence in Southeast Asia, China and South Asia. It belongs to Singaporean tech company Advance Intelligence group and currently has over 30 million users.
With Atome, purchases can be split up into a maximum of three months' instalments, and a late payment fee of $15 will be charged if bills are not settled in full each month. A failure to pay your monthly instalments will also result in your account being frozen. Late payment fees will accrue if failure to pay persists, but is capped at $30 per user. Payments can be made via credit or debit cards.
Grab PayLater is Grab’s proprietary BNPL app, which allows you to convert purchases into a maximum of 4 months instalments. The benefit of this app is that late payment fees are relatively low at $10 for each month of missed payments. Late penalties will accrue if you miss more than one month of payment, up to a maximum of $30.
The only limitation of Grab PayLater is that it provides only one channel of payment, which is through Grab Pay. This may involve a somewhat longer process, as you will have to top up your GrabPay using either your debit/credit card or online banking.
Hoolah is a BNPL app associated with ShopBack Singapore. Despite not offering as many promotions as the other BNPL apps, Hoolah has gained quite a following for being a trustworthy, dependable and fuss-free site. They offer a maximum instalment period of 3 months, and charge anywhere from $5 to $30 in late payment fees, depending on the item purchased. More valuable items will of course incur higher late payment penalties.
Shopee’s SPayLater is a BNPL service provided exclusively for the ecommerce platform by SeaMoney. You will be given the option, upon check-out, to convert your purchases to instalments lasting up to 12 months. However, a late payment fee of $5 will be charged on outstanding monthly bills. Payments for your SPayLater can be settled via debit/credit card, ShopeePay or bank transfers to the Shopee platform.
Singtel’s PayLater BNPL scheme is a payment option for those planning to shop on Singtel’s ecommerce site. They offer a rather unique payment option, where you can pay for your instalments through your monthly Singtel bill or through Atome.
Instalments can last from 12 to 36 months, which is pretty useful as their ecommerce platform offers valuable items such as mobile phones, laptops, home office furniture and kitchen appliances. The only caveat they impose is that buyers have to be a registered customer for any of the Singtel Mobile plans available.
Using a BNPL scheme to pay for purchases is a convenient way to manage your finances, while still being able to own items that you may urgently need. However, it does come with certain drawbacks, especially if you are unable to pay your instalments in a timely manner.
One alternative to BNPL is personal loans. These loans are more flexible, and are not tied to the purchase of items from a limited list of vendors. They can also be used to pay for a wider array of goods and services, such as medical emergencies or educational needs.
Lendingpot offers you an easy and accessible platform to compare personal loans, with competitive interest rates. Register easily with Singpass Myinfo and begin receiving offers from more than 40 lending partners, including banks and private institutions today.
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