UnaCash, a provider of financial solutions both in-app and in-store, forecasts a 7.9% increase in e-commerce sales of electronics and gadgets, reaching ₱397.7 billion this year.
This growth is partly attributed to the expanding adoption of “buy now, pay later” (BNPL) services.
Following electronics and gadgets, the food and beverage sector is expected to reach ₱114.1 billion (11%), appliances at ₱100 billion1 (10%), and fashion and beauty at ₱93.5 billion2 (8.5%).
The electronics and gadgets segment’s success in e-commerce underscores the beneficial relationship between BNPL services and online shopping.
An increase in the customer base, which includes 12% of Filipino internet users utilizing BNPL for weekly online shopping, mirrors the service’s rising popularity in the local market.
The top categories of products purchased online by Filipinos include fashion (65%), beauty and personal care (47%), and food and beverage (35%). The primary demographic engaging in e-commerce, those aged 25-34, constitutes 32.8% of platform users3.
Although consumer interest in these categories is high, market share varies, with electronics, gadgets, and physical media at 45%, followed by food and personal hygiene (25%), furniture and appliances (16%), and fashion (10%).
Data from UnaCash as of February 2024 reveals that 70.17% of platform purchases are for electronics and gadgets, aligning with a survey indicating that 61% of respondents use BNPL for these items, followed by 55% for fashion and accessories.
This correlation showcases the natural synergy between BNPL services and e-commerce.
“The development of BNPL in the Philippines will be closely tied to e-commerce,” explained Erwin Ocampo, head of product of UnaCash. “Online purchases on electronics, gadgets, furniture and home appliances, reflects the dynamic nature of the online retail sector, making 2024 seem like a fruitful time for solution providers like UnaCash.”
Further development of BNPL in the Philippines will be closely tied to e-commerce of electronics and gadgets, food, and fashion and beauty products, which reflects the evolving consumer preferences.
