Buy now, pay later (BNPL) provider Zip Co has announced an exclusive partnership to launch its service in Singapore on Singtel’s Dash app.
The service gives Dash customers an alternate payment option – they can either pay immediately with Dash or pay later for in-store or online purchases from merchants such as Klook, Omnidesk, OSIM and Singtel using Zip.
The Zip scheme offers four interest-free instalments across six weeks, with more payment schemes being rolled out over the next six months. Zip said it planned to bring more than 2,000 merchants on board through partner agreements with AsiaPay, Razer Merchant Services and HitPay.
Gilbert Chuah, head of financial and lifestyle services, consumer Singapore, for Singtel, said customers were looking for greater choice and control over managing their finances.
“Our partnership with Zip provides just that with an alternative payment method that is transparent and flexible,” Chuah said.
Chief executive and co-founder of Zip Larry Diamond said the move is part of Zip’s strategy to build a global BNPL business that supports regional and global partners operating in multiple markets.
“Our move into Singapore is an opportunity for us to tap into the country’s growing BNPL market and expand our presence in the Southeast Asian region following our strategic investment in BNPL provider TendoPay in the Philippines,” Diamond said.
Founded in 2013 in Australia, Zip’s main revenue comes from its US operations where it bought BNPL platform Quadpay in 2020. Zip now works with 55,000 merchants worldwide and serves around 10 million customers.
Singapore continues to see strong demand for BNPL payment options. A study commissioned by Zip found 56 per cent of e-commerce users in Singapore have used or will consider using a BNPL service.
Another report just released by publisher ResearchAndMarkets.com forecast Singapore’s BNPL market will grow 52.6 per cent this year to US$774 million, and reach US$3 billion by 2028. BNPL payment adoption is tipped to grow 25 per cent annually over the 2022-2028 forecast period.
The report said the shift to e-commerce platforms as a result of the pandemic resulted in widespread adoption of BNPL services in Singapore. That trend is expected to continue in the next few years, giving rise to even more BNPL startups with venture capital firms ready to back them up.
Last November, Singapore-based BNPL startup Pace raised US$40 million in a Series A funding round, attracting global investors including South Korea’s Atinum Partners and Japan’s Marubeni Ventures.
In addition, both payment companies and conventional banks are launching BNPL products in Singapore. For instance, Mastercard launched a commercial BNPL card in November which gives small businesses flexible financing options, allowing them to convert any purchase from 80 million merchants worldwide, wherever Mastercard is accepted, into periodic or monthly instalments.
Traditional banks are also entering strategic alliances with BNPL platforms in Singapore. In October, Standard Chartered Bank announced a 10-year partnership with Singapore-based Atome, a platform that provides BNPL services across all major Southeast Asian markets.