Consumer finance app BillEase has seen the popularity among Filipino shoppers of buy now, pay later (BNPL) or installment as an alternative payment for those who cannot immediately afford to make the purchase in cash and especially those with no credit cards.
According to Georg Steiger, BillEase chief executive officer and co-founder, one primary factor that drives BNPL is customer demand for financial flexibility.
“Underserved customers appreciate the financial flexibility that BNPL offers. It allows them to manage their finances by spreading payments over a period of time instead of making a large one-time payment. BNPL is seen as a more accessible and transparent option compared to traditional credit products,” Steiger said.
BillEase also sees BNPL a more accessible option for those who do not qualify for traditional credit cards.
“The simplicity and transparency of BNPL, with clear repayment schedules and no hidden charges, make it a preferred choice for many consumers,” Steiger said.
As an on-demand consumer credit app, BillEase provides customizable BNPL which allows customers to avail of cardless installment plans. It also provides personal loans, e-wallet top-ups, prepaid load, bills payment, gaming credits.
BillEase has been working with numerous partners in giving mass and emerging middle-income consumers access to services and products at competitive interest rates.
But it is BillEase’s latest partnership with the country’s largest mall chain, SM Supermalls, that can be considered groundbreaking.
BillEase sees this collaboration revolutionizing the local shopping experience which will eventually strengthen the purchasing power of Filipino shoppers.
This is BillEase’s first partnership with a mall operator and was primarily driven by the opportunities presented by omnichannel retailing and the growing need to be present wherever our customers are.
“By incorporating our services into the retail environment of a mall chain, we can seamlessly connect the physical shopping experiences, bringing the in-store shopping experience to the next level,” Steiger said.
This partnership aligns with “our broader mission to increase financial inclusion among the unbanked and underserved populations in the Philippines, “ he added.
While the adoption of digital financial services has grown significantly in recent years, BillEase believes a considerable portion of the population still remains outside the traditional banking system.
The partnership gives BillEase access to SM Supermalls’s 80 malls across the Philippines that serve 4.2 million people daily.
This massive reach presents a huge potential to redefine the retail experience for millions, according to Steiger.
Steiger said BillEase aims to make our BNPL service available to all qualified SM Supermalls tenants.
While exact figures and growth projections are unavailable on the gross merchandise value (GMV) that pass through BillEase, the combination of BillEase’s existing success and the inclusion of SM Malls creates a promising outlook for the company’s future growth trajectory, according to Steiger.
In the future, BillEase plans to tap other malls for similar partnerships.
“While our current focus is on ensuring the successful implementation of our partnership with SM Supermalls, we are indeed open to potential collaborations with other malls. Our goal is to expand and enhance our services to reach as many consumers as possible, and partnerships with other malls will certainly be a key part of that strategy,” Steiger said.
BillEase observed BNPL is popular across a broad spectrum of purchase categories, but it is most commonly used for higher-value items such as electronics, furniture, and fashion products, as it allows consumers to make these significant purchases more manageable by spreading the cost.
Citing Research and Markets, BillEase said BNPL payment industry in the Philippines is expected to grow by 22.5 percent on an annual basis to reach $1.9 billion in 2023.
The study added the BNPL payment adoption is expected to grow steadily over the forecast period, recording a compounded annual growth rateof 12.4 percent between this year and 2028.
The study said BNPL GMV in the country will increase from $1.57 billion in 2022 to reach $3.45 billion by 2028. Irma Isip
