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Report Overview
In 2022, the global Buy Now Pay Later market was valued at
US$ 13 Billion. Between 2023 and 2032, this market is estimated
to register a CAGR of 25.3%.
The buy now pay later option helps consumers purchase online or
in-store without making complete payments. Factors like
digitization, increasing merchant adoption, and repeat usage by
younger consumers are surging the market. Younger consumers
benefit from paying for stationery products for buying high-cost
products like laptops, smartphones, smart TV, etc. BNPL services
offer a fixed payment schedule, a simplified checkout process, zero
interest, and fast approval options to customers looking to make
purchases.
What are some of the most popular BNPL
platforms in INDIA
The most well-known Buy Now, Pay Later (BNPL) platforms that are
available in India are
Simpl is a company founded in 2015, Simpl offers instant account
approval. Users can purchase online with only one swipe. Every online
purchase is consolidated within the Simpl account. The balance has to
be cleared each 15-day period.
ZestMoney: ZestMoney is among the most rapidly growing fintech
companies in India. It utilizes technological advancements in mobile,
banking via digital as well as artificial intelligence to offer access to
capital in consumers to make purchases. ZestMoney gives interest-free
installment options by partnering with selected merchants, for
durations as long as six months.
LazyPay: LazyPay provides a mix of Simpl and ZestMoney services.
Shoppers can make purchases online using only one swipe and then
clear their charges every 15 days, or transform them into monthly
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components that are affixed to each month (EMIs). LazyPay offers loan
options that can be as high as $1,300.
Slice: Slice offers a free BNPL card, with no extra charges or annual
costs. Users can split your transactions into three equal installments in
a time period of 3 months.
ePay Later: ePay Later offers credit lines of about $350,0002.
Here are a few instances of well-known BNPL platforms that are
popular in India. It is important to remember that traditional banks,
online shopping bigwigs, as well as payment firms are also in the BNPL
market, offering different solutions.
Keep in mind that the demand and popularity of BNPL platforms could
change with the years, and it's an excellent idea to study and evaluate
different alternatives prior to making a choice.
Challenges:
1. Overspending Risk One of the challenges with this Buy Now
Pay Later (BNPL) market is the fact that it could entice customers
to go overboard since they aren't required to pay up front. It can
cause problems with finances if they are not handled in a
responsible manner.
2. late payment fees customers who fail to make BNPL payments
are usually faced with charges for late payments, which could be
a quick increase and cause the feeling of financial stress.
3. Regulations: In the course of time, as BNPL services get more
and more popular Regulators are examining the services more
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carefully for protection of consumers. It could lead to tighter
regulations that will affect the way these companies operate.
4. competition: The BNPL market is getting more crowded there
are many companies competing for clients. It can be difficult for
those who are new to the market to make a mark.
Opportunities:
1. Global Expansion BNPL businesses are in a great position to
extend their offerings to other regions, and access markets that
aren't served.
2. Partnerships Establishing alliances with merchants and online
platforms could aid BNPL companies reach out to larger
audiences and market their services in more locations.
3. Financial Inclusion The BNPL program can provide the perfect
opportunity to offer the financial services needed by those that
are not banked or who are in a low financial position and allowing
them to gain access to goods and services they could not have
prior to.
4. Innovative: There's room for creativity within BNPL including
making payment plans more personalised as well as integrating
with financial products and services, as well as making the
experience more user-friendly.
Market Segmentation
The BNPL market is divided in various segments based upon different
factors.
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1. Demographics The segments can be dependent on the age
group or income levels as well as consumption habits. As an
example, younger customers might make use of BNPL differently
than those of older age.
2. retail categories: BNPL can be classified by the kinds of
services or products it offers, including electronics, fashion and
travel as well as healthcare.
3. Geographical: Different regions may differ in preferences and
acceptance rate for BNPL service.
4. Merchant Partnerships BNPL companies often collaborate with
certain retailers, forming segments according to which retailers
they can work with.
5. Credit Risk Certain BNPL products may be geared towards
clients with high credit scores. Other services provide more
affluent services that serve an array of types of credit.
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