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Thailand: Buy now, pay later gains ground
Most Thai consumers (89%) are aware of buy now, pay later (BNPL) instalment plans as a payment option, though only a minority used it in the last year, according to a study by Mastercard.
An overwhelming majority said backing from established financial institutions such as banks would increase their trust and comfort in using instalment plans.
The data on payment habits, attitudes and preferences was published in Mastercard’s second annual “New Payments Index”, a global consumer survey spanning 40 markets in five regions, including seven in Asia-Pacific: Thailand, Australia, China, India, Japan, New Zealand and Vietnam.
The research found BNPL/instalment plans have plenty of room for growth in Thailand, with only 26% of those surveyed having used the digital payment method in the last year.
More than half of the respondents (55%) stated they were more likely to use BNPL for a large or emergency purchase, while 80% were interested in paying off bills using the option.
Though only 56% were comfortable with the idea of using a BNPL/instalment plan today, the survey made clear that more robust backing would encourage consumers to tap into BNPL and related offerings. Some 80% agreed they would feel safer using a BNPL/instalment plan service backed by a major payment network than by other providers, while 76% would be more interested in a plan offered by their current bank.
“Being able to pay later offers consumers a manageable, transparent way of making larger purchases,” said Aileen Chew, country manager of Mastercard for Thailand and Myanmar. “Already there is widespread awareness and great interest in instalment programmes and BNPL in Thailand, and it has the potential to increase financial inclusion and purchasing power for many segments of the Thai population.
“What consumers are telling us is they value this service more when it is provided by a trusted service provider, like their bank, to facilitate their repayments responsibly.”
Among those in Thailand who used BNPL/instalment plan services in the last year, the most common reasons for doing so were: it helps to save money for a purchase without waiting to get it (63%), purchases come with low or no interest payments (60%), and it allows users to make purchases they had been delaying (60%).
The research for the New Payments Index 2022 was conducted by The Harris Poll and Mastercard from March 21 to April 19, 2022, based on interviews with 35,040 respondents in 40 markets, including 7,004 respondents across seven markets in Asia-Pacific.
Source: https://www.bangkokpost.com/business/2434474/buy-now-pay-later-gains-ground