PayMongo‘s merchant network in the Philippines will now be able to offer buy now pay later (BNPL) payment options to their customers thanks to the Manila-based online payment processing platform’s recent partnership with Singapore’s Atome Philippines.
According to a FIS WorldPay report, global cash payments fell below half of the point of sale (POS) share in 2021 and are expected to decline to less than one-third share of transaction value by 2025.
The report predicts that digital and mobile payments will move in to fill the void of fewer cash transactions, in tandem with the rising popularity of BNPL payment options.
BNPL payment adoption is expected to grow steadily in the Philippines, recording a compound annual growth rate (CAGR) of 50.9 per cent between 2022 and 2028 according to the findings of researchandmarkets.com.
BNPL’s gross merchandise value in the country will increase from $383million in 2021 to reach $9476.8million by 2028. The certainty and transparency of BNPL repayment and credit terms as well as aversion to high-interest fees have led to BNPL’s growing popularity, especially among millennials and Gen Z consumers.
Anson’s, a home appliances and electronics store in the Philippines, was one of the first merchants to accept Atome payments via PayMongo.
The store’s e-commerce and digital marketing manager, Kristoffer Cheng, described setting up Atome’s BNPL option on its website as “quick and easy” because of its partnership with PayMongo.
As one of the most promising fintech companies to emerge from the Philippines, PayMongo offers an online onboarding process and API integration with retail websites or apps, which allow them to accept digital payments such as credit and debit cards, online banking, e-wallets, and now BNPL, during checkout.
Atome launched in the Philippines in October 2021 with a solution that allows customers to split their shopping bills with flexible deferred payment options while incurring no additional annual or service fees, and has already partnered with around 500 online and offline retailers in the Philippines.
“With the growing trend towards digital payments and the appeal of zero-interest payment options, especially among digital-native customers, we’re confident this partnership will help our merchants grow sales and delight both new and returning customers,” said Miel Pahati, PayMongo’s head of partnerships.
Jeremy Wong, head of strategic partnerships at Atome, added that its partnership with PayMongo will “accelerate the acceptance of flexible deferred payment options, and will support thousands of merchants in enabling a superior, secure checkout experience for consumers, in-store and online.
“This, in turn, will optimise customer conversion, increase average orders and repeat sales.”