BillEase: The future of flexible payments for e-commerce in the Philippines

Meeting the Needs of Southeast Asia's Digital Shoppers

In Southeast Asia, e-commerce is booming, with millions of consumers embracing online shopping. In the Philippines, flexible payment methods like BillEase are rapidly gaining popularity, gaining nearly 500,000 new users in 2023 alone.

Designed for the region's unique digital habits and financial landscape, BillEase empowers both consumers and businesses to thrive in an evolving marketplace. Its integration with payment platforms like Alipay+ has helped BillEase expand its merchant network over 3x, from over 3,000 merchants in 2022 to over 10,000 merchants in 2023.

If you're an e-commerce merchant looking to understand payment methods in the Philippines or how to leverage innovative tools like BillEase, this guide is for you.

The digital payments landscape in the Philippines

Southeast Asia's digital economy is growing at an unprecedented pace, and the Philippines stands out as a vibrant hub for e-commerce. Between 2022 and 2023, the country has seen 16% growth in e-commerce, one of the highest rates in the world. Online payments have contributed to this growth; in 2022, 42.1% of total retail transactions were completed online.

However, cash-on-delivery (COD) remains the leading payment method for many shoppers. Why?

• Limited credit card access: Only 15% of Filipinos own credit cards, leaving many without traditional financing options.
• Unbanked population: Over 76% of Filipinos remain unbanked, creating a demand for non-traditional payment methods.
• Rising smartphone usage: With smartphone penetration projected to hit 97% by 2027, Filipinos are turning to mobile-first solutions for their digital needs.

This environment has heightened the demand for buy now, pay later (BNPL) platforms like BillEase.

What is BillEase?

BillEase is a BNPL solution that allows consumers to shop online and pay in instalments. Launched in 2017 by First Digital Finance Corporation, BillEase caters to the unbanked and underbanked in the Philippines, offering an accessible alternative to credit cards.

Customers can sign up through the BillEase mobile app, available for Android and iOS. They'll be asked to fill in their personal details, upload required documents (an ID, proof of income, and proof of billing) and submit these for review.

Once approved, users are assigned an initial credit limit. Customers can immediately use their credit to shop at partner merchants or pay bills online.

Why is BillEase gaining popularity?

BillEase stands out for several reasons:

1. Accessibility: Users who typically may not qualify for credit cards can use BillEase, as the platform's documentation requirements can be easily met by the average working person. On a macro scale, this enables financial inclusion and helps the Philippines' unbanked population build formal credit histories.
2. Convenience: Account approval is quick; some users get immediate approval, although others may need to wait up to one day. The solution is also seamlessly integrated into popular platforms like Lazada, Zalora, and Samsung. Users can choose BillEase as their payment mode upon checkout. And because BillEase is designed as a mobile-first application, account management is literally at the user's fingertips.
3. Flexible terms, affordable interest: Users can choose instalment plans from three to 12 months, helping them manage their cash flow. Consumers can proactively plan for their expenses by customising the down payment amount and frequency of instalments. Additionally, Pay with Grace allows BillEase users to pay off their purchases within a three- or six-month grace period without incurring any interest charges. It's currently offered by default to select online and offline BillEase merchants.
4. Wider reach, higher conversions: For merchants, joining BillEase's network provides access to the platform's growing user base, expanding their own potential customer base. With a BNPL option through BillEase, merchants can see higher order values at checkout.
5. Fast transactions: Payments are processed quickly, ensuring smooth cash flow for merchants. BillEase quickly settles merchant transactions daily through automated bank transfers. The risk of non-payment falls on BillEase, and not individual merchants.

Key features of BillEase

1. Fast and simple onboarding: Sign-up involves providing basic personal information, valid IDs, proof of income, and proof of billing address through the BillEase app. Approval is often granted within 24 hours, with an initial credit limit that account holders can use immediately.
2. Buy Now, Pay Later options: Shoppers can split payments into instalments or defer them by 30 days. Having a BNPL option helps merchants attract more customers and potentially increases customer basket sizes by up to 50%. BillEase simplifies integration into online storefronts with APIs for popular services like Shopify, WooCommerce, and Magento. BillEase is also available for point-of-sale (POS) systems in brick-and-mortar stores.
3. e-Wallet options: Users can link their BillEase credit line to popular wallets like GCash or PayMaya, enabling them to transfer funds from BillEase directly to their wallet accounts. This credit line can be used for purchases, bills, mobile load, and other transactions. Consumers can use BillEase credit in places where mobile wallets are widely accepted, both online and offline.
4. Secure and transparent payments: BillEase differs from other providers because all costs and fees are clearly stated upfront. Users know just how much they're paying with the "All-In Rate" or the total cash outlay after all instalments are paid. This gives consumers better insight into how much something really costs, and may help them make wiser spending decisions.

The role of BillEase in Southeast Asia's e-commerce ecosystem

BillEase is part of a broader expansion of BNPL in Southeast Asia, fuelled by soaring smartphone and internet usage as well as broader digital transformation across the region. Moreover, a significant unbanked population creates an unmet demand in the Southeast Asian credit market, which BNPL solutions easily fill.

BNPL is particularly attractive to younger populations who have just entered the workforce and have yet to build credit histories. These digital natives are a growing segment of the consumer market, and are more likely to adopt technological solutions to structural economic barriers.

Larger BNPL providers like Atome and Pace operate across the region, but BillEase's localized approach ensures its dominance in the Philippines. Many BNPL companies struggle with profitability; not BillEase, which reported a doubling of revenues to US$ 57 million in 2023. In fact, the fintech company outperformed traditional banks with 47% return on equity (ROE) in the same year. Banks typically have a ROE of 5% to 15%.

Filipinos typically use BNPL services like BillEase to purchase electronics and gadgets like smartphones, laptops, and digital accessories. These high-value purchases are often beyond the reach of average income earners if paid in one lump sum, hence the reliance on instalment payments.

With manufacturers pushing out newer, more powerful models into the market almost yearly, consumers are easily tempted into making these purchases. BNPL enables these purchases to happen more often than they may typically occur.

Why e-commerce businesses should adopt BillEase

BillEase's popularity is the result of key strategic decisions, like integrating with Alipay+ to enable cross-border payments. Previously unbanked Philippine consumers can now complete transactions on international platforms like Agoda. For e-commerce businesses both inside and outside the Philippines, integrating BillEase offers several strategic advantages:

• Higher conversion rates: Flexible payment options reduce cart abandonment.
• Access to new customers: Attract unbanked and budget-conscious shoppers.
• Increased Loyalty: Transparent and convenient payment methods foster trust.

Embrace the future of payments with BillEase

The rise of BillEase reflects the growing demand for flexible, inclusive payment solutions in the Philippines and Southeast Asia. By catering to unbanked consumers and offering seamless integration for businesses, BillEase positions itself as a game-changer in the region's e-commerce landscape.

Whether you're an e-commerce retailer or a digital entrepreneur, adopting localised BNPL solutions like BillEase can help you stay ahead in this dynamic market. Contact us to learn more about BillEase and payments in Asia.