Our Month in Review - June 2024
In the June edition of Our Month in Review newsletter at UnaFinancial, we are happy to share with you a detailed look into global market insights in all matters fintech.
Singapore consumers increasingly choosing digital wallets over credit
Digital wallets are projected to become the most popular payment method in Singapore, according to the 2024 Global Payments Report from Worldpay .
By 2027, digital wallets are expected to account for nearly S$34 trillion in global transaction value, or 49% of combined e-commerce and POS sales, with Singapore contributing S$89 billion. Digital wallets are projected to handle 44% of transaction value in Singapore, equivalent to S$14.8 billion.
Millennials are the largest user group for digital wallets, with 70% usage compared to 39% for Baby Boomers. APAC led the world in digital wallet use online in 2023, accounting for 70% of regional e-commerce transaction value. The Buy Now, Pay Later (BNPL) method is also growing, particularly among Gen Z, with a forecasted CAGR of 8% in Singapore from 2023 to 2027.
Global fintech revenue rose 14% in last two years: Report
Global fintech firms experienced a 14% compound annual growth rate in revenues between 2021 and 2023, despite significant drops in funding and valuations, according to a report by 波士顿谘询公司 and QED Investors .
This growth is attributed to key players achieving profitability and rapid scaling. The industry has shifted from a 'growth at all costs' model to one focused on profitable growth, with margins improving by an average of 9 percentage points. The report also noted the impact of digital public infrastructure on the adoption of real-time payments in countries like India and Brazil, though it remains uncertain if other countries can replicate this success. As the industry enters a period of higher interest rates, profitability and compliance are emphasized as crucial for attracting investment and scaling operations.
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Asia Pacific Buy Now Pay Later Market Report 2024: Projected to Reach USD 335.04 Billion by 2029 with a CAGR of 16.56%
The Buy Now Pay Later (BNPL) market in the Asia Pacific is set to grow from USD 155.72 billion in 2024 to USD 335.04 billion by 2029, with a CAGR of 16.56%. Driven by digital transactions and Fintech innovations, BNPL services are expanding, particularly in regions with low credit card penetration like India, China, and Indonesia. In contrast, countries with high credit card usage, such as Japan and Australia, also see significant BNPL adoption.
Australia leads the region, with 14% of e-commerce payments made via BNPL, driven by Gen Z and Millennials. The Asia Pacific market is fragmented, with numerous domestic and international players like Reepay, Akulaku, and Hoolah. This growth marks a shift in consumer payment behaviors and retailer strategies, indicating a transformative phase for digital finance in the region.
Until next time!
Best regards,
UnaFinancial Team