Fintech firms are experiencing high demand for BNPL services for both online and offline purchases

DUBLIN, 10 February 2023 /PRNewswire/ — The report “India Buy Now Pay Later Business and Investment Opportunities Databook – 75+ KPIs for BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics – Q1 2023 Update” has been added ResearchAndMarkets.com’s Offering.

BNPL payments are expected to grow at 22.9% YoY to reach USD 14,289.4 million in 2023.

BNPL payment industry i India has recorded strong growth over the past four quarters, supported by increased e-commerce penetration.

Medium to long term growth history of BNPL industry i India remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, registering a CAGR of 12.2% during 2023-2028. BNPL Gross Merchandise Value in the country will increase from USD 11,628.8 million in 2022 to now USD 25,387.2 million by 2028.

The buy now pay later space has grown significantly due to the increasing traction of flexible payment methods among consumers in Tier II and Tier III cities India. The trend is expected to accelerate further over the next three to four years. The payment method has resonated with consumers across age groups and classes and has become the standard payment choice for many in the country.

Despite regulatory issues, consumer BNPL spending is expected to grow significantly in Q4 2022, mainly due to the year-end festive season and festive season. The payment method is expected to increase its penetration in both online and offline markets, as consumers turn to flexible payment options amid rising inflation and cost of living.

Fintech firms are experiencing high demand for BNPL services for both online and offline purchases

Reserve Bank of India announced a number of regulatory measures which have had a direct impact on the operations of BNPL players i India. Despite regulatory hiccups, the sector is projected to register strong growth in Q4 2022 amid rising consumer demand.

LazyPay, ZestMoney and KreditBee are among the many BNPL providers that have experienced strong demand for their services in Q4 2022. Consumers have increasingly resorted to the BNPL payment method to finance their party-related purchases, which has significantly driven volume in the country. For KreditBee, loan disbursement increased by more than 100% during the festive season of 2022 compared to 2021. Much of the demand for BNPL services was driven by consumers in Tier II and III cities in India.

The demand was not only evident for online purchases. Pine Labs, one of the leading fintech firms in the country, has witnessed a sharp increase in the use of BNPL services for offline payments. The firm had estimated BNPL transactions worth INR 50 billion October 2022 alone. This represents a growth of 100% compared to a month on average. To capitalize on the growing demand, the firm also announced a tie-up with 100,000 stores for BNPL services in October 2022. In the short to medium term, Pine Labs is expected to increase its presence in Tier III and IV cities across India.

While the payment method has come under increasing scrutiny from the central bank, demand has continued to increase India, and the publisher expects the trend to continue over the next three to four years. Rising inflation and cost of living will further support consumer adoption i India.

Suppliers focus on travel industry to drive BNPL transaction volume and value India

After two years of pandemic-induced restrictions, travel activities have seen a strong upswing in the Indian market. To capitalize on the growing tourism and travel demand, BNPL players are entering into strategic alliances with travel-based platforms in India.

IN October 2022, CASHe, an AI-powered financial wellness platform, announced that the firm had entered into a strategic alliance with IRCTC, the online travel platform for booking train tickets. During the collaboration, the two companies have launched a travel now pay later service, which thus allows travelers to pay back the ticket purchase in instalments.

There is great demand for BNPL in the travel segment. SanKash, the firm focused on providing travel-related BNPL services, announced that the firm recorded a 102% increase in travel loan amount in Q2 FY23 compared to Q1 FY23. The majority of demand has been driven by consumers in the 20-30 age group.

With demand expected to increase further in Q3 and Q4 FY23, due to this year’s holiday trends, the publisher expects several firms to register strong growth in the travel segment. This will also drive more strategic alliances in the Indian market from the short to medium term.

This report provides a detailed data-centric analysis of Buy Now, Pay Later (BNPL), covering market opportunities and risks across a range of retail categories. With over 75 country-level KPIs, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online) and distribution models. In addition, it provides a snapshot of consumer behavior and retail dynamics India. KPIs in both value and volume terms help in gaining a thorough understanding of the end market dynamics.

The research methodology is based on industry best practice. Its unbiased analysis leverages a proprietary analytics platform to provide a detailed view of emerging business and investment market opportunities.

scope

India Buy Now Pay Later Market Share Analysis of Key Players

• Single
• ZestMoney
• LazyPay
• Capital Float
• PineLabs
• Paytm Postpaid
• OlaMoney postpaid
• Amazon pay later
• Flipkart Pay Later

India BNPL Market Size and Consumption Patterns, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average value per transaction Trend analysis
• Transaction volume trend analysis

India Buy Now Pay Later Revenue Analysis, 2019-2028

• Buy now Pay later earnings
• Buy now, pay later Share by revenue segments
• Buy now, pay later Merchant Commission earnings
• Buy Now Pay Later Earnings After Lost Payment Fee Earnings
• Buy now Pay later Income after Pay now and other income

India Buy Now Pay Later Operational KPIs and Statistics, 2019-2028

• Buy now, pay later Active consumer base
• Buy now Pay later Bad debt

India BNPL by purpose, 2019–2028

• Convenience – short-term loans
• Credit – Term loans

India BNPL by business model, 2019–2028

• To-Party (BNPL offered by retailers)
• Tripartite BNPL offer

India BNPL by Merchant Ecosystem, 2019–2028

• Open Loop System
• Closed Loop System

India BNPL by Distribution Model Analysis, 2019–2028

• Freestanding
• Banks and payment service providers
• Marketplaces

India BNPL Analysis by Channel, 2019-2028

• Online channel
• POS channel

India Buy Now Pay Later Retail: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average value per transaction Trend analysis
• Transaction volume trend analysis

India Buy Now, Pay Later in Home Improvement: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average value per transaction Trend analysis
• Transaction volume trend analysis

India Buy Now Pay Later Travel/Entertainment: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average value per transaction Trend analysis
• Transaction volume trend analysis

India Buy Now, Pay Later in Services: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average value per transaction Trend analysis
• Transaction volume trend analysis

India Buy Now Pay Later Automotive Industry: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average value per transaction Trend analysis
• Transaction volume trend analysis

India Buy Now Pay Later in Healthcare & Wellness: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average value per transaction Trend analysis
• Transaction volume trend analysis

India Buy Now Pay Later in Grocery: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average value per transaction Trend analysis
• Transaction volume trend analysis

India Buy now, pay later Analysis by consumer attitude and behavior

• Sales increase by product category
• Divide by age group
• Divide by income
• Divide by gender
• Reason for adoption

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