Buy now, pay later (BNPL) is a new digital payment method that is becoming increasingly popular in Thailand. Driven by the rapid expansion of ecommerce in Thailand, buyers can take possession of an item without delay and pay for it in scheduled installments, which helps ease the burden of making an important payment. The terms and conditions for this service depend on each platform.

The BNPL model meets customers’ needs while significantly boosting businesses through increased sales. It also helps online operators reach new shoppers—this flexible payment method makes purchasing decisions easier. Let’s look at BNPL in Thailand, how it benefits businesses and customers, and how it’s expanding.

What’s in this article?

• Overview of BNPL in Thailand
  
• The advantages of BNPL
  
• BNPL, a growing ecommerce trend
  
• Key takeaways of BNPL in Thailand
  

Overview of BNPL in Thailand

BNPL is a new payment type aligned with the 0% installment plans offered by credit cards. It has emerged with the rapid growth of ecommerce—a growth that the COVID-19 pandemic boosted in Thailand. The program allows shoppers to order products, take possession of them immediately, and split the cost. Repayments can be made over 3 to 12 months, depending on the terms and the service provider. When paid on time, interest is usually low or waived entirely. This convenient option eases the spending burden and has become popular among online shoppers who can’t pay large amounts upfront or don’t feel comfortable doing so, especially those who are too young to work or don’t have credit cards.

The number of BNPL platforms is expanding. They offer attractive incentives to boost earnings and encourage customers to try this service, such as no-interest or low-interest rates, and flexible payment terms. Thailand’s leading BNPL service providers often partner with online shopping platforms. Examples include Atome, Lazada PayLater, K PAY LATER by KBank, Pay Next by True Money Wallet, PayLater by Grab, and SPayLater by Shopee.

Does BNPL impact credit scores?

BNPL doesn’t immediately impact a shopper’s credit score the way cards or personal loans do. Some platforms skip direct reporting to the National Credit Bureau. However, defaulting on dues or having a history of lateness might affect customers’ access to services and spending limits in the future. Although BNPL providers might refrain from reporting, debts could be passed on to collection agencies that ultimately share data with the National Credit Bureau.

Making timely payments is good practice, whether using BNPL or other credit services—it builds healthy financial habits, reduces the risk of debt-related issues, and positively impacts credit scores.

How is BNPL different from paying in installments using a credit card?

The main difference is that it’s simpler to apply for BNPL than for a credit card— applications require less information and financial paperwork, and no prior credit-history check. Approval can be swift for moderate amounts, and there are no annual fees or extra charges. All this makes BNPL a more convenient, user-friendly choice and contributes to its expansion.

Although BNPL is more adjustable than a card installment plan, the latter can help build a borrower’s profile, while BNPL history usually has no positive impact on credit score. Using a credit card to pay also allows customers to enjoy additional benefits, such as loyalty points that can be redeemed through rewards or cash back. Financially, credit cards prove more advantageous in the long run.

The advantages of BNPL

BNPL is a flexible payment option that doesn’t require shoppers to cover the entire cost upfront. Here’s how it can benefit customers and businesses:

Benefits for customers

• Eased burden about large sums of money: Customers can take immediate possession of the purchased items and spread the cost without paying a large sum upfront. This promotes liquidity and allows people to hold onto their funds for emergencies or other expenses.
  
• No-interest or low-interest rates: These appeal to buyers as they make installment payments more convenient. Knowing exactly how much each installment will be is another plus.
  
• Enhanced purchasing power and budget management: Paying in installments gives customers more spending freedom. It also allows them to plan their expenses and manage their money more effectively.
  
• Fast approval: BNPL applications are typically approved instantly on a merchant’s website or application—unlike credit cards, which can have a demanding application process.
  

Benefits for businesses

• Increased sales: The option to pay in installments instead of full upfront makes purchasing decisions simpler for customers. Businesses, therefore, sell more, and the average order value also rises.
  
• Expanded customer base: Enabling BNPL helps reach new shoppers, particularly students or recent graduates who’ve just started working and might not have credit cards or prefer not to settle in full.
  
• Reduced shopping cart abandonment rates: Offering flexible payment options such as BNPL makes purchasing decisions easier, reducing the chances of shoppers abandoning their shopping carts.
  
• Increased competitiveness: In today’s highly competitive and choice-rich marketplace, businesses that offer BNPL have a competitive edge over those that don’t—they attract more customers and boost the chances of repeat purchases.
  
• Enhanced image: BNPL service providers usually have reliable risk assessment and security systems. This enhances customer trust and boosts the brand’s image.
  
• Increased instant revenue: BNPL service providers typically assume the risk associated with the transaction and manage the collection of payments. Businesses receive the full amount without delay, eliminating the need to follow up with customers to collect payments.
  

Considering these advantages, it’s no surprise that the BNPL model is spreading among Thailand’s online stores.

BNPL, a growing ecommerce trend

BNPL is a flexible payment method gaining traction in many countries worldwide as ecommerce expands. In an increasingly competitive market, BNPL service providers must finetune their promotional strategies, adjust interest rates, and extend their partnership networks with various platforms to reach customers effectively. It’s expected that BNPL will continue to grow along with ecommerce, especially in cross-border online transactions. According to data from Research and Markets, BNPL in Thailand is expected to grow at a compound annual growth rate of 10.9%, from $4.3 billion (or ฿146 billion) in 2024 to $7.1 billion or (฿239 billion) in 2029.

Competition among BNPL providers drives promotions and special features. Many platforms offer 0% interest, loyalty rewards, and secure transactions to attract customers. Some marketing campaigns in Thailand echo the theme, including Beauty First, Payment Later; Rest First, Pay Later; and Eat First, Pay Later. Moreover, collecting customer data and advancements in AI have improved credit screenings, reduced the risk of nonperforming loans, and accelerated approval processes.

The BNPL market continues to grow steadily, fueled by a rapidly expanding digital economy worldwide. Retailers and shoppers in Thailand can benefit from this financial innovation and an increasingly agile online shopping experience.

Boost sales in the United States and Canada using Affirm with Stripe

To take advantage of the growth of the BNPL approach in Thailand and around the world, businesses with customers in the U.S. and Canada can use Affirm with Stripe Payments. Getting started takes just minutes, and eligible operators do not need to provide additional documentation. Enable Affirm and other payment methods from your Stripe Dashboard and enjoy a powerful, flexible user interface.

Key takeaways of BNPL in Thailand

BNPL is a new plan that benefits businesses and customers in the digital age. It helps sellers boost sales, widen their audience, and enhance their image. Shoppers benefit from the improved liquidity that an installment payment option provides—neither a large sum of money nor a credit card is needed. This method addresses the liquidity concerns of many Thai buyers.

BNPL has been promoted as a tool to boost sales and promote purchasing decisions while also providing convenience and versatility to shoppers. Before using it, customers must ensure the schedule and amounts align with their budgets, allowing them to enjoy the safety, ease, and value of the BNPL model without becoming burdened with unmanageable debt.