India Buy Now Pay Later (BNPL) Market

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India Buy Now Pay Later (BNPL) Market by Channel (Online and Point of Sale (PoS)), by Application (Retail Goods, Media & Entertainment, Healthcare & Wellness, Automotive, Home Improvement, and Others), by End User (Generation X, Generation Z/Millennials, and Baby Boomers) - Opportunity Analysis and Industry Forecast, 2024– 2030

Industry: ICT & Media | Publish Date: 29-May-2024 | No of Pages: 106 | No. of Tables: 74 | No. of Figures: 39 | Format: PDF | Report Code : N/A

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India Buy Now Pay Later (BNPL) Market Overview

The India Buy Now Pay Later (BNPL) Market size was valued at USD 2.79 billion in 2023, and is predicted to reach USD 34.31 billion by 2030, at a CAGR of 36.1% from 2024 to 2030.

Buy now pay later (BNPL) is a convenient short-term financing option that allows consumers to defer payment for purchases to a later date. This payment method, structured with an installment plan, involves consumers, financiers, and merchants, enabling customers to shop online and in stores without immediate full payment. BNPL is versatile, covering a wide range of purchases from everyday items including clothing and electronics to larger expenses such as home improvement products.

The popularity of BNPL is on the rise due to its numerous advantages for consumers. It provides a flexible way to buy high-cost items such as smartphones and laptops, pay for educational expenses including tuition fees and stationery, and even cover daily expenses such as canteen bills. Additionally, the introduction of zero-interest payment options by BNPL providers makes this payment solution even more appealing to customers, offering them a convenient and attractive payment alternative.

Rising E-Commerce Platforms with Online Payment Methods Thrives the India Buy Now Pay Later (BNPL) Market Growth

The growth trajectory of the Buy Now Pay Later (BNPL) market has been significantly influenced by the ascent of e-commerce. With consumers increasingly favouring online shopping due to its convenience and extensive product offerings, BNPL services have seamlessly integrated into e-commerce platforms, enabling customers to split their payments into manageable installments.

This integration not only boosts conversion rates for online retailers but also drives up the average order value, as consumers are emboldened to make larger purchases without immediate financial strain. Furthermore, by incorporating BNPL options, e-commerce merchants gain a competitive edge, attracting and retaining customers who value the convenience and financial flexibility afforded by such payment solutions.

The alignment between BNPL services and the preferences of online shoppers underscores the mutually beneficial relationship between the proliferation of e-commerce and the expansion of the BNPL market, solidifying its significance in the evolving digital payments landscape.

 

Increasing Online Shopping Among the Consumers is Driving the Growth of India Buy Now Pay Later (BNPL) Market

The thriving buy now pay later (BNPL) market trend is propelled by the increasing prevalence of online shopping. With digital commerce progressively shaping consumer habits, individuals are embracing the convenience of purchasing goods and services online.

This surge in online transactions has fueled a rising demand for flexible payment solutions that accommodate various financial needs. BNPL services have emerged as a frontrunner in addressing this demand, providing consumers with the option to defer payments or spread costs over manageable installments.

This adaptability appeals to a diverse range of shoppers, from those seeking prudent financial management strategies to individuals desiring immediate access to desired products without the burden of upfront payments. The symbiotic relationship between online shopping and BNPL services highlights a transformative shift in consumer behavior and payment preferences, signaling ongoing growth and innovation in the BNPL market.

High Interest Rates and Fees Associated with BNPL services Hinder the India Buy Now Pay Later (BNPL) Market Growth

The buy now, pay later (BNPL) market may face growth impediments due to high fees and interest rates, which may discourage consumers from utilizing these services. BNPL transactions typically involve installment payments alongside additional fees or interest charges.

If these fees are perceived as too high, consumers may opt for alternative payment methods or choose to avoid accumulating additional debt. This reluctance to utilize BNPL options may constrain market expansion and undermine consumer trust.

To address this issue, BNPL providers need to carefully manage their fee structures and interest rates to ensure affordability while remaining competitive. Transparent pricing, clear communication of terms, and responsible lending practices are essential to building trust and encouraging widespread adoption of BNPL services. Regulatory oversight may also play a role in ensuring fair and transparent pricing practices within the BNPL market.

 

Integration of Artificial Intelligence (AI) Technology Creates Ample Opportunity Growth for the India Buy Now Pay Later (BNPL) Market

Leveraging Artificial Intelligence (AI) for credit scoring within the buy now pay later (BNPL) market signifies a groundbreaking approach to evaluating consumer creditworthiness. Unlike traditional methods, AI-driven algorithms have the capacity to analyze a wide range of data sources, including unconventional indicators such as online shopping habits and social media activity, in addition to conventional credit history.

This broader spectrum of data allows for a more comprehensive and nuanced understanding of an individual's financial behavior and repayment capacity. Consequently, BNPL providers can make more accurate and timely credit assessments, leading to increased approval rates for deserving customers and the provision of tailored financing options.

Furthermore, AI algorithms can continuously learn and adapt to evolving consumer trends, enhancing the precision of credit assessments over time. In essence, integrating AI into credit scoring processes within the BNPL market not only strengthens risk management capabilities but also fosters a more personalized and streamlined customer experience.

 

Competitive Landscape

The market players operating in the India buy now pay later industry include Affirm Holdings, Inc., Atome, Block, Inc. (Square), Klarna Bank AB (PULP), Latitude, Openpay, PayPal Holdings, Inc., Sezzle, Scalapay, Zip Co Ltd. (Zip), and others.

India Buy Now Pay Later Market Key Segments

By Channel

  • Online

  • Point of Sale (PoS)

By Application

  • Retail Goods

  • Media & Entertainment

  • Healthcare & Wellness

  • Automotive

  • Home Improvement

  • Others

By End user

  • Generation X

  • Generation Z/Millennials

  • Baby Boomers

REPORT SCOPE AND SEGMENTATION:

Parameters

Details

Market Size in 2023

USD 2.79 Billion

Revenue Forecast in 2030

USD 34.31 Billion

Growth Rate

CAGR of 36.1% from 2024 to 2030

Analysis Period

2023–2030

Base Year Considered

2023

Forecast Period

2024–2030

Market Size Estimation

Billion (USD)

Growth Factors

  • Rising e-commerce platforms with online payment methods thrives the market growth.

  • Increasing online shopping among the consumers is driving the growth of market.

Companies Profiled

10

Market Share

Available for 10 companies

Customization Scope

Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

  • Affirm Holdings, Inc.

  • Atome

  • Block, Inc. (Square)

  • Klarna Bank AB (PULP)

  • Latitude

  • Openpay

  • PayPal Holdings, Inc.

  • Sezzle

  • Scalapay

  • Zip Co Ltd. (Zip)

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Frequently Asked Questions

The key market players operating in the India buy now pay later market are Affirm Holdings, Inc., Atome, Block, Inc. (Square), Klarna Bank AB (PULP), Latitude, Openpay, PayPal Holdings, Inc., Sezzle, Scalapay, Zip Co Ltd. (Zip), and others.

According to the Next Move Strategy Consulting, the size of the India buy now pay later market is estimated to be at USD 34.31 Billion in 2030.

BNPL offers convenience and flexibility, allowing consumers to spread the cost of purchases over time without incurring interest charges. It also provides access to goods and services that may otherwise be unaffordable upfront.

Key challenges are the high interest rates and fees associated with BNPL services.

According to the Next Move Strategy Consulting, the size of the India buy now pay later market is estimated at USD 2.79 Billion in 2023.

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