India Buy Now Pay Later Market Report 2023-2028 - Providers are Focusing on the Travel Industry to Drive BNPL Transaction Volume and Value
DUBLIN, Nov. 17, 2023 /PRNewswire/ -- The "India Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
BNPL payments in India are expected to grow by 20.5% on an annual basis to reach US$14.7 billion in 2023
LazyPay, ZestMoney, and KreditBee are among the many BNPL providers that have experienced high demand for their services in Q4 2022. Consumers, in increasing numbers, have resorted to the BNPL payment method to fund their festive-related purchases, which has significantly driven the volume in the country. For KreditBee, the loan disbursement increased by more than 100% during the festive season in 2022, compared to 2021. Much of the demand for BNPL services was driven by consumers in Tier II and III cities in India.
The demand was not only evident for online purchases. Pine Labs, one of the leading fintech firms in the country, has witnessed a strong surge in the usage of BNPL services for offline payments. The firm had projected BNPL transactions worth INR 50 billion in October 2022 alone. This represents a growth of 100% compared to any month on average.
To capitalize on the growing demand, the firm also announced a tie-up with 100,000 stores for BNPL services in October 2022. From the short to medium-term perspective, Pine Labs is expected to boost its presence in Tier III and IV cities across India.
While the payment method has been under growing scrutiny from the central bank, the demand has continued to increase in India, and the publisher expects the trend to further continue over the next three to our years. Rising inflation and cost of living will further support consumer adoption in India.
Providers are focusing on the travel industry to drive their BNPL transaction volume and value in India
After two years of pandemic-induced restrictions, travel activities have posted a strong rebound in the Indian market. To capitalize on the growing tourism and travel demand, BNPL players are forging strategic alliances with travel-based platforms in India.
In October 2022, CASHe, an AI-driven financial wellness platform, announced that the firm had entered into a strategic alliance with IRCTC, the online travel platform to book train tickets. Under the collaboration, the two firms have launched a travel now pay later service, thereby allowing travellers to repay their ticket purchase in installments.
There is a strong demand for BNPL in the travel segment. SanKash, the firm that focuses on offering travel-related BNPL service, announced that the firm recorded a 102% increase in travel loan amount in Q2 FY23 compared to Q1 FY23. The majority of the demand has been driven by consumers in the age group of 20-30.
With the demand expected to further increase in Q3 and Q4 FY23, due to year-end holiday trends, the publisher expects more firms to record strong growth in the travel segment. This will also drive more strategic alliances in the Indian market from the short to medium-term perspective.
Paytm, the third-largest mobile wallet provider by market share is banking on its credit strategy, which includes BNPL, personal loans to consumers, and merchants, to drive growth. In Q2 FY23, BNPL loans accounted for 55% of the total INR 73.13 billion loans disbursed by the firm. The firm is also using BNPL to drive the growth of its other credit products. For instance, 40% of personal loans have been disbursed to BNPL customers. This shows that BNPL is part of the larger strategy of the firm to cross-sell and drive growth.
With the robust growth achieved by Paytm in its BNPL segment, the publisher expects other prepaid payment instrument providers, including PhonePe - the market leader, to incorporate BNPL play into its service offering from the short to medium-term perspective. This will further drive the competitive landscape in the Indian BNPL market, thereby driving industry growth over the next three to four years.
India Buy Now Pay Later Market Share Analysis by Key Players
India BNPL Market Size and Spending Pattern, 2019-2028
India Buy Now Pay Later Revenue Analysis, 2019-2028
India Buy Now Pay Later Operational KPIs & Statistics, 2019-2028
India BNPL by Purpose, 2019-2028
India BNPL by Business Model, 2019-2028
India BNPL by Merchant Ecosystem, 2019-2028
India BNPL by Distribution Model Analysis, 2019-2028
India BNPL Analysis by Channel, 2019-2028
India Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019-2028
India Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019-2028
India Buy Now Pay Later in Travel/Entertainment: Market Size and Forecast, 2019-2028
India Buy Now Pay Later in Services: Market Size and Forecast, 2019-2028
India Buy Now Pay Later in Automotive: Market Size and Forecast, 2019-2028
India Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019-2028
India Buy Now Pay Later in Groceries: Market Size and Forecast
India Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
For more information about this report visit https://www.researchandmarkets.com/r/q53dqg
For E.S.T Office Hours Call +1-917-300-0470
U.S. Fax: 646-607-1907
View original content:https://www.prnewswire.com/news-releases/india-buy-now-pay-later-market-report-2023-2028---providers-are-focusing-on-the-travel-industry-to-drive-bnpl-transaction-volume-and-value-301992083.html
SOURCE Research and Markets
Solutions Showcase Session
Keynote Presentation by Genesys: Goodbye, NPS. Hello, People-centric, End-to-End Experience Benchmarking!
Artificial General Intelligence â€“ A Generative AI Epiphany