Business report

China Buy Now Pay Later (BNPL) Business Report 2022-2028

Dublin, Nov. 09, 2022 (GLOBE NEWSWIRE) — The “Business and Investment Opportunities Buy Now, Pay Later in China – Over 75 KPIs on Buy Now, Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Sales Product Dynamics Retail and Consumer Demographics – Q3 2022 Update” report has been added to from ResearchAndMarkets.com offer.

BNPL payments are expected to increase by 37.2% on an annual basis to reach US$119,251.4 million in 2022.

The medium to long-term growth story of the BNPL industry in China remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, registering a CAGR of 19.9% ​​during 2022-2028. BNPL’s gross merchandise value in the country will increase from US$86,905.0 million in 2021 to US$353,898.4 million by 2028.

In China, buy now, pay later (BNPL) is rapidly gaining momentum, even in the face of a weaker macro landscape. Unlike other global markets, the Chinese are familiar with the cashless ecosystem, e-commerce and online shopping. This has led to a massive demand for BNPL services. China’s Zero-Covid policy, which urges consumers to avoid offline transactions, has further reinforced the trend in China.

Currently, big tech giants such as Ant Group, JD.com, and Pinduoduo dominate the BNPL market in China. However, the recent regulatory crackdown on internet monopoly giants has allowed new emerging BNPL players to enter the market. New consumer scenes emerging in the Chinese market also represent potential opportunities for new entrants to the BNPL industry.

The strong growth potential offered by the Chinese market also attracts foreign investors to enter the industry. Some of the major global BNPL players, such as Afterpay and Klarna, have invested in the Chinese BNPL sector. Afterpay, for example, invested in local BNPL company Happay, while Klarna set up a subsidiary in China.

Regional players, such as Atome, are also expanding their presence in the Chinese market by launching services for Tier I and Tier II cities. Over the next three to four years, the publisher expects more global BNPL players to enter the Chinese market.

Rising cross-border e-commerce and dividends from the Belt and Road Initiative provide new opportunities for domestic BNPL companies

In recent years, mainly due to the global pandemic outbreak, the volume of e-commerce transactions has increased significantly. This means that the BNPL industry has flourished. In China, not only is the domestic e-commerce market growing, but cross-border e-commerce has also increased significantly in recent years. This, together with the Chinese government’s Belt and Road Initiative, opens up new opportunities for domestic BNPL companies to go overseas.

Okebeli, Chinese player BNPL, has become the first in the industry to expand overseas with its deferred payment service. In 2021, the company partnered with merchants in Indonesia, enabling consumers in the Southeast Asian market to make purchases using an interest-free installment payment service. In Indonesia, the coverage rate of its stores exceeded 60%.

In 2022, the company plans to further strengthen its position in the Indonesian market, where demand for the BNPL payment method has been steadily increasing for two years. In addition to this, the company also plans to increase its R&D investments and expand its operations to many other Southeast Asian markets in the short to medium term.

With the BNPL market expected to grow strongly in the Asia-Pacific region, the publisher expects more Chinese companies to expand their services in the region over the next three to four years.

E-commerce players launch their own BNPL products to drive volume and order growth

Major e-commerce companies, such as Alibaba and Pinduoduo, have already introduced the BNPL payment option in their platforms, and as a result, these companies have experienced growth in order value and volume over the past few years. . Continuing the trend, other e-commerce players are introducing their own BNPL services in China. F

In June 2022, Kuaishou, the social e-commerce platform, announced the platform-wide launch of its BNPL service, Sesame Credit. Through a service called Sesame First, customers with a sesame score of 550 and above can order, receive and try products before paying for their purchases.

Sesame First also makes it easier to return and exchange goods if they receive a poor quality product. Thus, ensuring that the rights and interests of customers are better protected. In a bid to solve the problem of customer distrust, Sesame First is expected to lead to an increase in conversion rate and sales, thereby generating revenue for the business.

During the pilot phase, some stores that switched to Sesame First experienced higher order volume with increased conversion rates. As BNPL’s adoption among online shoppers continues to grow in China, the publisher expects more e-commerce players to introduce BNPL products to their platforms in the short to medium term.

Scope

China BNPL Market Size and Spending Pattern

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

China Buy Now Pay Later Operational KPIs

  • Revenue from buy-it-now and pay-later, 2019 – 2028
  • Buy Now Pay Later Share by Revenue Segments
  • Buy Now Pay Later Merchant Commission, 2019 – 2028
  • Buy now, pay later, missed payment fee revenue, 2019 – 2028
  • Buy Now Pay Later Pay Now and Other Revenues, 2019 – 2028
  • Accounts Buy Now Pay Later, 2019 – 2028
  • Buy Now Pay Bad Debt Later, 2019 – 2028

China Buy Now Pay Later Market Share Analysis by Key Players (Alipay, Tencent, JD Baitio, Meituan)

China Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

  • online channel
  • POS channel

China Buy Now, Pay Later in Retail: Market Size and Forecast

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

China Buy Now, Pay Later in Home Improvement: Market Size and Forecast

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

China Buy Now, Pay Later in Leisure and Entertainment: Market Size and Forecast

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

China Buy Now, Pay Later in Healthcare and Wellbeing: Market Size and Forecast

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

China Buy Now Pay Later in Other: Market Size and Forecast

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

China Buy Now Pay Later Analysis by Consumer Attitude and Behavior

  • Buy now, pay later Increased sales by product category
  • Buy now Pay later Split spend by age group
  • Buy now, pay later Share of gross merchandise by revenue
  • Buy now, pay later Share of gross value of goods by gender
  • Buy Now Pay Later Rationale for Adoption Gross Goods Value Analysis

Companies cited

  • Tencent
  • JD Finance
  • Alipay
  • huabei
  • Baitiao
  • Happy
  • Asia Pay
  • Atom
  • Separate it
  • Union Pay International
  • LexinFintech
  • After-payment
  • Fenfu

For more information on this report, visit https://www.researchandmarkets.com/r/33isv6