Amidst a rapidly evolving digital landscape, UnaCash, a leading financial solutions provider, forecasts a significant uptick in e-commerce sales of electronics and gadgets, driven by the burgeoning popularity of ‘buy now, pay later’ (BNPL) services. Erwin Ocampo, head of product at UnaCash, highlighted the symbiotic growth between e-commerce and BNPL, projecting a 7.9 percent increase to P397.7 billion in 2024 for the electronics and gadgets segment. This prediction underscores the dynamic shift towards online shopping, spurred by flexible payment options.
Insight into Consumer Behavior
Data gleaned from UnaCash’s platform as of February 2024 reveals a dominant preference for electronics and gadgets, accounting for 70.17 percent of purchases. This inclination towards tech-related products is further bolstered by a 12-percent surge in BNPL service utilization within the app. The frequency of BNPL usage for online shopping, at least once weekly, reflects a growing trend among Filipino consumers, particularly in the 25 to 34 age bracket, who are increasingly embracing this financial model for its convenience and accessibility.
Expanding Beyond Tech: Diverse Market Growth
While electronics and gadgets lead the charge, UnaCash’s analysis anticipates growth across various sectors. Predictions include an 11 percent increase in BNPL transactions for food and beverage to P114.1 billion, 10 percent for appliances reaching P100 billion, and an 8.5 percent rise in fashion and beauty to P93.5 billion. This diversification in BNPL usage underscores the service’s appeal across different consumer categories, with fashion, beauty, and personal care, and food and beverage emerging as significant segments alongside tech.
Market Dynamics and Future Prospects
The evolving consumer preference towards BNPL is reshaping the e-commerce landscape, positioning companies like UnaCash at the forefront of this digital transformation. The analysis also reveals a varied market share distribution, with electronics, gadgets, and physical media leading at 45 percent, followed by food and personal hygiene at 25 percent, furniture and appliances at 16 percent, and fashion at 10 percent. This spread indicates a broadening of the market, fueled by the flexibility and accessibility offered by BNPL services.
The intersection of BNPL services and e-commerce not only facilitates a more inclusive financial ecosystem but also heralds a new era of consumer behavior characterized by convenience, accessibility, and choice. As we move towards 2024, the growth in online purchases of electronics and gadgets through BNPL services is a testament to the changing dynamics of retail and the potential for innovative financial solutions to drive market expansion.