RedSeer estimates that India’s BNPL market will reach $45-50 billion by 2026, up from $3-3.5 billion now. The research firm also estimates that the number of bnpl user The country may grow to 80-100 million subscribers by then, from 10-15 million at present.
However, since maximum credit Analysts at Macquarie Research said the Rs 1,00,000 ($1,347.89) offer currently on BNPL is far less than what the credit card is offering, before the card could disrupt the market or market share. Yes, it will take some time.
fintech firm MobiKwik BNPL’s business for the company has almost doubled in two years, in a country where millions of people have little access to formal credit.
MobiKwik, which is one of the top BNPL players in India and is backed by the Abu Dhabi Investment Authority, said income from this segment accounted for nearly a fifth of its revenue of Rs 3.02 billion for the financial year ended March 31.
“Today only 60-70 million Indians have access to credit, which means 93% of India does not have access to credit,” said Upasana Taku, co-founder of the firm.
“This will become the fastest revenue driver for the business as BNPL transactions have grown 45x over the past two years. New user pairs are enormous; repeat rates and average ticket sizes are increasing.”
As the COVID-19 pandemic has sent more and more people towards online shopping, the demand for easy loans has prompted more players to enter the BNPL market – Amazon joined the BNPL bandwagon in 2020, while domestic Payments firm BharatPe launched the service last month.
Commenting on the renewed interest in BNPL, Vikas Bansal, Director, Amazon Pay India, said, “During the pandemic, a very large population of millennials and young customers were looking for credit and expanding their budgets.” .
To be sure, there are concerns that BNPL customers with limited or no credit history may be at higher risk of default, even as some industry experts say some players may not report accurate default details to credit bureaus. can do.
The Reserve Bank of India did not immediately respond to a request for comment.
additional line of credit
Mumbai resident Divya Menon said she recently tried the pay-now option for items priced under $10 on an e-commerce website. She said that she found it so convenient that she is now choosing it across multiple platforms.
“Once BNPL is activated, it is only a one-step process,” said Menon, who works in human resources at an IT services firm. “With the card it’s a two-step process of keying in the security code and then a one-time password. It just feels more convenient. Plus, it’s like having an extra line of credit.”
While BNPL isn’t the only credit option for Menon, it is for many new online shoppers in India where even smaller towns and villages are now served by companies like Amazon and Walmart’s Flipkart.
Most payment apps that offer BNPL services require customers to provide government-verified information and bank details before availing the service.
BNPL firm Cashe said Indians are now making major purchases after a record rise in coronavirus infections between April and May, leading to the suspension of most activities.
CEO Yogi Sadana said, “We are now seeing a demand for revenge in India.” “Backed by the festive season, we are seeing a 25-30% increase in demand in the BNPL segment from last year”.