India's BNPL Future Looks Bright: User Base Expected to Quintuple to Surpass 100 Million by 2027

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Sep 18, 2023, 17:30 ET

The "Asia-Pacific Buy Now Pay Later Market and Trends 2023" report has been added to ResearchAndMarkets.com's offering.

DUBLIN, Sept. 18, 2023 /PRNewswire/ -- Buy Now, Pay Later (BNPL) services are rapidly gaining trust and popularity among consumers in the Asia-Pacific (APAC) region, according to a recent publication. More adults in the APAC region completely trust BNPL services rather than completely distrusting them, setting the stage for significant growth in BNPL adoption. BNPL has also become one of the top 7 payment methods used at least 5 times per month in the region.

In Australia, the BNPL market experienced substantial growth, with BNPL sales increasing from a single-digit to a double-digit value in EUR billion from 2021 to 2022. This growth reflects the rising preference for BNPL services among Australian consumers. Meanwhile, India is poised to witness remarkable growth in BNPL, with the transaction value expected to more than triple from 2022 to 2026, driven by a mid-range double-digit Compound Annual Growth Rate (CAGR). The number of BNPL users in India is projected to nearly quintuple from 2022 to 2027, surpassing 100 million users. Among APAC countries, China is expected to experience the most significant increase in BNPL market size by 2025.

In Southeast Asia, luxury products emerged as the top category purchased using BNPL on online B2C E-Commerce platforms such as Zalora. Home & Lifestyle and Beauty were also popular categories. Notably, the share of shoppers using BNPL to finance luxury purchases nearly doubled between 2021 and 2022, indicating a growing consumer interest in using this payment method for high-end products. Additionally, younger consumers, including Millennials and Gen Z, were the primary users of BNPL services for online purchases, followed by Baby boomers and Gen X, according to survey data cited in the report.

Key Questions Covered:

BNPL Share of B2C E-Commerce Payments: What was the share of BNPL in total B2C E-Commerce payments in 2022, and how much is it expected to grow by 2026?
Trust in BNPL: How high is the level of trust in BNPL across different markets?
BNPL Market Size in APAC: What is the BNPL market size in various APAC countries, and how is it projected to evolve?
Age Distribution of BNPL Users: What is the age distribution of BNPL users in APAC countries?

Covered Countries:

China
Japan
Australia
India
Singapore
Pakistan

Key Companies Mentioned:

Klarna
Afterpay
Affirm
Apple Pay Later
PayPal
Sezzle

BNPL services are quickly becoming a preferred payment method in the APAC region, with significant growth in adoption and trust among consumers. Luxury purchases, in particular, are on the rise through BNPL, demonstrating its increasing popularity among shoppers.

Key Topics Covered:

1. Management Summary

2. Global Overview

BNPL Industry and Trends Overview, June 2023
Overview of BNPL Concerns and Regulations, June 2023
BNPL Market Size, in USD billion, 2022e & 2027f
Number of BNPL Users, in millions, 2022e & 2027f
Share of BNPL Accounting for Total B2C E-Commerce Transaction Value, in %, 2022
Payment Methods Used At Least 5 Times Per Month, in % of Respondents, September 2022
Market Shares of BNPL Services, in % of Top B2C E-Commerce Websites Supporting BNPL as a Payment Method, March 2023
Overview of Apple Pay Later, June 2023
Overview of Klarna's Activities in BNPL Landscape, June 2023
Number of Klarna's Users, in millions, & Year-on-Year Change, in %, 2019-2022
Number of Afterpay's Active Users, in millions, & Year-on-Year Change, in %, December 2019, December 2020, December 2021, March 2022
Number of Afterpay's Active Sellers, in thousands, & Year-on-Year Change, in %, December 2019, December 2020, December 2021, March 2022
Number of Affirms's Active Users, in millions, & Year-on-Year Change, in %, June 2019-2022

3. Asia-Pacific

3.1. Regional

Share of BNPL Accounting for Total B2C E-Commerce Payments, in %, 2022 & 2026f
Payment Methods Used At Least 5 Times Per Month, in % of Respondents, September 2022
Top Product Categories Purchased on Online B2C E-Commerce Site Zalora Using BNPL, in % of BNPL Payments, Q3 2022
Breakdown of Payment Methods Used to Purchase Luxury on Online B2C E-Commerce Site Zalora, in %, 2021 & 2022
Breakdown of Payments Used on Online B2C E-Commerce Site Zalora, by Age Group, in % of Online Shoppers, Q3 2022

3.2. China

BNPL Gross Merchandise Value, in USD billion, 2022 & 2028f
BNPL Usage, by Age, in % of Internet Users, 2022e

3.3. Japan

Share of Respondents Using BNPL, in %, December 2022
Level of Usage of Buy Now Pay Later Services Compared to a Year Ago, in % of BNPL Users, December 2022

3.4. Australia

BNPL Sales, in AUD billion, FY 2021 & FY 2022
Breakdown of Total Transaction Value vs Volume, in %, FY 2022
Breakdown of BNPL Revenue, by Age, in % of BNPL Users, February 2023
Type of Debt Held, incl. BNPL Loans, in % of Consumers, Q4 2022
Level of Concern/Stress Over Type Debt, by Type of Debt, incl. BNPL Loan, Q4 2022
Current Outstanding Balances on Loans in Capital City, in AUD thousand, Q4 2022

3.5. India

BNPL Transaction Value, in USD billion, 2022e & 2026f
Number of BNPL Users, in millions, 2022e & 2027f

3.6. Singapore

BNPL vs Credit & Debit Card Transaction Value, in SGD billion, 2021
Breakdown of BNPL User Age, in %, April 2022
Breakdown of BNPL Users Aged 25 or Older Accounting for Total BNPL Transaction Value, in %, April 2022

3.7. Pakistan

BNPL Use, in % of Respondents, July 2022

For more information about this report visit https://www.researchandmarkets.com/r/trv9du

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