India Buy Now Pay Later Market Report 2023-2028: Fintech Firms are Experiencing Huge Demand for BNPL Services for Both Online and Offline Purchases

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Feb 10, 2023, 17:10 ET

DUBLIN, Feb. 10, 2023 /PRNewswire/ -- The "India Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments are expected to grow by 22.9% on an annual basis to reach US$14,289.4 million in 2023.

The BNPL payment industry in India has recorded strong growth over the last four quarters, supported by increased ecommerce penetration.

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

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

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

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

The Reserve Bank of India announced a slew of regulatory measures that have had a direct impact on the operations of BNPL players in India. Despite the regulatory hiccups, the sector is projected to record strong growth in Q4 2022, amid the rising demand for consumers.

LazyPay, ZestMoney, and KreditBee are among the many BNPL providers that have experienced high demand for their services in Q4 2022. Consumers, in increasing numbers, have resorted to the BNPL payment method to fund their festive-related purchases, which has significantly driven the volume in the country. For KreditBee, the loan disbursement increased by more than 100% during the festive season in 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 strong surge in the usage of BNPL services for offline payments. The firm had projected BNPL transactions worth INR 50 billion in October 2022 alone. This represents a growth of 100% compared to any 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. From the short to medium-term perspective, Pine Labs is expected to boost its presence in Tier III and IV cities across India.

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

Providers are focusing on the travel industry to drive their BNPL transaction volume and value in India

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

In October 2022, CASHe, an AI-driven financial wellness platform, announced that the firm had entered into a strategic alliance with IRCTC, the online travel platform to book train tickets. Under the collaboration, the two firms have launched a travel now pay later service, thereby allowing travellers to repay their ticket purchase in installments.

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

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

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

It breaks down market opportunity by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in India. KPIs in both value and volume term help in getting in-depth understanding of end market dynamics.

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

Scope

India Buy Now Pay Later Market Share Analysis by Key Players

Simpl
ZestMoney
LazyPay
Capital Float
PineLabs
Paytm Postpaid
OlaMoney Postpaid
Amazon Pay Later
Flipkart Pay Later

India BNPL Market Size and Spending Pattern, 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 Revenues
Buy Now Pay Later Share by Revenue Segments
Buy Now Pay Later Revenue by Merchant Commission
Buy Now Pay Later Revenue by Missed Payment Fee Revenue
Buy Now Pay Later Revenue by Pay Now & Other Income

India Buy Now Pay Later Operational KPIs & 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 - Loan Term Loans

India BNPL by Business Model, 2019-2028

Two-Party (BNPL offered by retailers)
Three-Party BNPL Offering

India BNPL by Merchant Ecosystem, 2019-2028

Open Loop System
Closed Loop System

India BNPL by Distribution Model Analysis, 2019-2028

Standalone
Banks & Payment Service Providers
Marketplaces

India BNPL Analysis by Channel, 2019-2028

Online Channel
POS Channel

India Buy Now Pay Later in Retail Shopping: 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 in 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 in Automotive: 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 and 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 Groceries: 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 Behaviour

Sales Uplift by Product Category
Share by Age Group
Share by Income
Share by Gender
Adoption Rationale

For more information about this report visit https://www.researchandmarkets.com/r/m614u3-buy-now-pay?w=5

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