DUBLIN--(BUSINESS WIRE)--The "China Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to ResearchAndMarkets.com's offering.

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

Medium to long term growth story of BNPL industry in China remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 19.9% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$86,905.0 million in 2021 to reach US$353,898.4 million by 2028.

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

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

The high growth potential offered by the Chinese market is also attracting foreign investors to enter the industry. Some of the leading global BNPL players, such as Afterpay and Klarna, have invested in the Chinese BNPL sector. Afterpay, for instance, invested in domestic local BNPL firm Happay, whereas, Klarna established a subsidiary in China.

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

The rise of cross-border e-commerce and the dividends of the Belt and Road Initiative are bringing new opportunities for domestic BNPL firms

In recent years, mainly because of the global pandemic outbreak, e-commerce transaction volume has surged significantly. This meant that the BNPL industry flourished. In China, not just the domestic e-commerce market is growing, but cross-border e-commerce has also surged significantly over the last few years. This, coupled with the Belt and Road Initiative of the Chinese government, is opening new opportunities for domestic BNPL firms to go overseas.

Okebeli, the Chinese BNPL player, became the first in the sector to go overseas with its deferred payment service. In 2021, the firm partnered with merchants in Indonesia, thereby allowing consumers in the Southeast Asian market to make purchases using an interest-free installment payment service. In Indonesia, the coverage rate of its stores has exceeded 60%.

In 2022, the firm is planning to further strengthen its position in the Indonesian market, where the demand for the BNPL payment method has been on a steady rise over the two years. In addition to this, the firm is also planning to increase its investment in R&D and expand operations into many more Southeast Asian markets from the short to medium-term perspective.

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

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

Leading e-commerce businesses, such as Alibaba and Pinduoduo, have already introduced the BNPL payment option in their platforms, and as a result of this, these firms have experienced growth in order value and volume over the last few years. In continuation with 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 a platform-wide launch of its BNPL service, Sesame Credit. Through a service called Sesame First, customers having a sesame score of 550 and above can order, receive, and try products before paying for their purchases.

Sesame First also allows for easy return and exchange of goods if they receive a poor quality product. Thus, ensuring that the rights and the interest of the customers are better protected. With the aim to solve the problem of distrust among customers, Sesame First is expected to lead to an increase in conversion rate and sales, thereby driving revenue for the firm.

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

Scope

China BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

China Buy Now Pay Later Operational KPIs

• Buy Now Pay Later Revenues, 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 & Other Income, 2019 - 2028
• Buy Now Pay Later Accounts, 2019 - 2028
• Buy Now Pay Later Bad Debt, 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 Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

China Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Companies Mentioned

• Tencent
• JD Finance
• Alipay
• Huabei
• Baitiao
• Happay
• AsiaPay
• Atome
• Splitit
• UnionPay International
• LexinFintech
• Afterpay
• Fen Fu

For more information about this report visit https://www.researchandmarkets.com/r/igs8in

Contacts

ResearchAndMarkets.com

Laura Wood, Senior Press Manager

[email protected]

For E.S.T Office Hours Call 1-917-300-0470

For U.S./ CAN Toll Free Call 1-800-526-8630

For GMT Office Hours Call +353-1-416-8900