Lazada sets eyes on Malaysia’s $1.5b BNPL market: report

This followed announcements to introduce BNPL services in Malaysia.

Lazada’s entry into Malaysia’s “Buy Now, Pay Later” (BNPL) trend will give it access to the market which will be valued at $1.5b by 2026, GlobalData reported.

This comes after reports that Lazada plans to introduce BNPL services in Malaysia, following other e-commerce platforms, such as Shopee.

“Lazada is likely to see an increase in transactions with BNPL as it will ease access to interest-free loans on its platform,” Pinky Hiranandani, Principal Analyst in the Thematic Intelligence team at GlobalData, said.

In its Ecommerce Analytics, GlobalData reported the BNPL market value in Malaysia is expected to almost double to $481m in 2022 from $272m in 2021. It is expected to subsequently reach $1.5b in 2026.

“GlobalData’s BNPL Analytics 2022 reveals that BNPL’s share in the e-commerce spending in Malaysia is set to increase from 0.5% in 2019 to 9.0% in 2026. This shift to digital payments post-pandemic is likely to benefit Lazada’s BNPL service,” Hiranandani said.

“Lazada’s closest competitor, Shopee, charges a monthly processing fee of 1.5% of the total payment amount for its ‘SPayLater’ and offers a broad selection of merchants but in limited categories. A broad merchant selection across various categories as well as zero processing fees are likely to appeal the customers looking to use BNPL service.”