BNPL or Buy Now Pay late is all set to surge in India’s fintech space, as per a research conducted by Redseer, a management consulting firm. It suggests that the BNPL segment is moving at a 65 percent year-on-year growth and is all set to touch a staggering $40 billion by 2025.
The nine times funding growth and massive adoption which was witnessed in 2021 is a testimony to the fact, as per Redseer The compelling value proposition, coupled with the ability to avail of attractive discounts and cashback offers, has led to rapid adoption, it said.
In a statement it said consumers are rapidly taking to BNPL due to ease of use, discounts and evolving credit needs. BNPL provides users with greater flexibility, allowing them to make purchases across a wider variety of categories and stores. BNPL also reduces the financial burden on users, as they are no longer required to make repayments across a pre-specified repayment period.
It added India’s BNPL ecosystem is now seeing multiple products and business models emerge, primarily as a result of the country’s diverse BPL users and ecosystem. This provides a vehicle for BNPL users to make purchases when they want to, without being tied down to a rigid repayment schedule. BNPL players are driving very high customer satisfaction and are significantly ahead of traditional pay later products as well, Redseer said.
The report says the current BNPL use cases are skewed towards eCommerce, and consumers primarily use this option for online shopping, food delivery, bill payments, online travel, e-health, edtech and ride hailing. As per the report close to 73 percent of this segment use BNPL for online shopping. Companies are actively trying to diversify their use cases with wider merchant partnerships. It has further paved the way for huge headroom for future BNPL growth basis use case diversification.