China's buy now pay later market is growing — but challenges remain, experts say
There's been a surge of interest in BNPL services in China over the last decade, said Kapil Tuli, marketing professor at the Singapore Management University's (SMU) Lee Kong Chian School of Business.
Buy now pay later services are a form of payment where consumers make purchases and pay them off over a period of time in several instalments, often interest-free. While BNPL is typically interest-free, some providers charge high late payment fees.
A few factors are fueling the "perfect storm" for the growing trend, according to Tuli. They include unprecedented low interest rates, the rise of online payment through "super apps" like Alipay and WeChat and extremely well-funded fintech start-ups eager to acquire new customers.
In addition, China's cashless society, huge e-commerce market and mobile and online shopping have become a ubiquitous to life in China, said Boh Wai Fong, deputy dean of Nanyang Business School at Nanyang Technological University in Singapore.
The Chinese BNPL sector emerged as one of the fastest growing markets in Asia-Pacific region, according to a survey by research and consulting firm PayNXT360.
According to the Q2 2021 BNPL Survey, BNPL payment in the country is expected to grow by 51.3% on an annual basis, and could reach $82.78 billion in 2021.
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IAmMooMoo : eh.. is Grab going to China?
efficentupupOP IAmMooMoo: Everything is possible
沉睡的五月 IAmMooMoo: China has Didi. They are investors in Grab, Grab probably won't go
IAmMooMoo 沉睡的五月: yeah.. so dunno this post got what link to GRAB?