India BNPL Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India BNPL Market Analysis
India's Buy Now Pay Later Services Market has generated a revenue of USD 8 billion in the current year and is poised to register a CAGR of 10% for the forecast period. 22% of consumers in India bought goods using BNPL services. The 26 to 35 age group is the primary segment of the BNPL market in India. Nearly 70 million Indians have access to credit, accounting for 7% of India. Still, 93% of Indians do not have access to credit.
The BNPL market in India has gained popularity due to its convenience and flexibility, especially among the younger generation and online shoppers. It has enabled consumers to afford expensive purchases and manage their finances better by spreading payments over time. The pandemic turned people towards online shopping, increasing digital payments and easy tax-free loans driving. 71% have been purchasing more items online since the pandemic. Clothing and Electronics are the major products purchased by BNPL service.
Lazy Pay witnessed a 400% growth in the last two years, with 296 merchant partners offering simple as a payment option. Customers like the low penalty for late payments, the app's reliability, and the speed with which customer issues are resolved. Even among niche players, the flexibility of onboarding new consumers has fueled adoption.
India BNPL Market Trends
Surging E-commerce and Digital P2M Payments Boosting the Market
E-commerce in India is about to cross USD 100 billion soon. Digitizing the economy and providing cheap internet to the people are a few of the many reasons that boosted digital sales growth in India. Buy Now Pay Later is becoming a preferred mode of payment for e-commerce transactions. The growth of e-commerce has expanded the customer base for BNPL services. Online shoppers are increasingly opting for BNPL options at the checkout, as it offers them a convenient and flexible payment solution for their purchases. The ease of integrating BNPL services into online platforms has made it accessible to a broader range of consumers. BNPL services have contributed to an increase in the average order value for e-commerce transactions. By allowing consumers to make larger purchases and pay in installments, BNPL services have empowered consumers to afford expensive products that they may not have been able to purchase upfront. This has resulted in higher sales volumes and revenues for e-commerce platforms.
Rise in Consumer Spending Driving the Market
The rise in consumer spending has had a positive impact on the Buy Now Pay Later (BNPL) industry. Increased consumer spending levels create more opportunities for BNPL services to thrive and grow. The rise in consumer spending has fostered innovation and competition within the BNPL industry. To attract and retain customers, BNPL service providers strive to offer more competitive terms, improved user experiences, and additional features. This leads to increased innovation and a better overall experience for consumers. The growth in consumer spending has attracted the attention of financial institutions, retailers, and e-commerce platforms. This has led to increased partnership opportunities for BNPL service providers. Financial institutions may collaborate with BNPL companies to offer their customers flexible payment options. At the same time, retailers and e-commerce platforms may integrate BNPL services into their checkout process to enhance the customer experience and increase sales.
India BNPL Industry Overview
The Buy Now Pay Later (BNPL) industry has become increasingly competitive, with numerous players entering the market to capitalize on its growth potential. The competitive landscape of the BNPL industry is dynamic, with both established players and new entrants vying for market share. The report covers major players operating in India's Buy Now Pay Later services market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, domestic and international companies are increasing their market presence by securing new contracts and tapping new markets. Players who differentiate themselves through competitive interest rates, flexible repayment options, superior customer experiences, strong partnerships, and innovative solutions are expected to thrive in the competitive landscape of the BNPL industry. It has major players, including Lazypay, Paytm Postpaid, Zest Money, Free Charge, and Simpl.
India BNPL Market Leaders
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Lazypay
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Paytm Postpaid
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Zest money
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Free charge
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Simpl
*Disclaimer: Major Players sorted in no particular order
India BNPL Market News
- May 2023: ZestMoney plans to be profitable in 6 months. The fintech firm is said to be finalizing a new investment round from its existing shareholders, including Quona Capital, Zip, Omidyar Network India, Flourish VC, and Scarlet Digital. To ensure business continuity, ZestMoney plans to operate as a lending service provider (LSP), partnering with banks and NBFCs to write out loans rather than lending directly from its balance sheet.
- February 2023: India lifts ban on PayU's LazyPay and some other lending apps. India's IT Ministry has lifted the ban on seven high-profile lending apps, including PayU's LazyPay, Kissht, KreditBee, and Indiabulls' Home Loans, according to a person familiar with the matter, providing some relief to the fintech industry that has been reeling with immense scrutiny in recent quarters.
India BNPL Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increasing e-commerce adoption
- 4.2.2 Rising middle class and disposable income
- 4.2.3 Access to credit and financial inclusion
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4.3 Market Restraints
- 4.3.1 Lack of financial literacy
- 4.3.2 Data privacy and security concerns
- 4.4 Insights on Various Regulatory Landscape
- 4.5 Insights on impact of technology and innovation in the market
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4.6 Industry Attractiveness - Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Buyers
- 4.6.2 Bargaining Power of Suppliers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitutes
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Channel
- 5.1.1 Online
- 5.1.2 POS
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5.2 By Enterprise
- 5.2.1 Large Enterprise
- 5.2.2 Small & medium enterprise
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5.3 By End-user
- 5.3.1 Consmer electronics
- 5.3.2 Fashion & garments
- 5.3.3 Healthcare
- 5.3.4 Leisure & entertainment
- 5.3.5 Retail
- 5.3.6 Other End-users
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Zest Money BNPL
- 6.2.2 Free charge
- 6.2.3 Paytm postpaid
- 6.2.4 epayLater
- 6.2.5 Mobikwik ZIP
- 6.2.6 Flipkart pay later
- 6.2.7 Olamoney Postpaid
- 6.2.8 Money Tap
- 6.2.9 Simpl
- 6.2.10 Lazy Pay
- 6.2.11 Flexmoney
- 6.2.12 Amazon Pay later
- 6.2.13 Capital float
- 6.2.14 Slice
- 6.2.15 Kreditbee
- 6.2.16 Postpe*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
India BNPL Industry Segmentation
Buy Now Pay Later is a short-term financing. Consumers can purchase the products and pay later with no interest. India's Buy Now Pay Later Services Market is segmented by Channel (Online and POS), by Enterprise (Large enterprise and small & medium enterprise), and by end-user (Consumer electronics, Fashion & garments, Healthcare, Leisure and entertainment, Retail, and others). India's Buy Now Pay Later Services Market is segmented by Channel (Online and POS), by Enterprise (Large enterprise and small & medium enterprise), and by end-user (Consumer electronics, Fashion & garments, Healthcare, Leisure and entertainment, Retail, and others). The report offers market size and forecasts for the India Buy Now Pay Later Services Market in value (USD) for all the above segments.
| By Channel | Online |
| POS | |
| By Enterprise | Large Enterprise |
| Small & medium enterprise | |
| By End-user | Consmer electronics |
| Fashion & garments | |
| Healthcare | |
| Leisure & entertainment | |
| Retail | |
| Other End-users |
India BNPL Market Research FAQs
What is the current India Buy Now Pay Later Services Market size?
The India Buy Now Pay Later Services Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)
Who are the key players in India Buy Now Pay Later Services Market?
Lazypay, Paytm Postpaid, Zest money, Free charge and Simpl are the major companies operating in the India Buy Now Pay Later Services Market.
What years does this India Buy Now Pay Later Services Market cover?
The report covers the India Buy Now Pay Later Services Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Buy Now Pay Later Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What technological advancements are driving the growth of BNPL Industry in India?
The technological advancements driving the growth of BNPL Industry in India are a) Seamless integration with e-commerce platforms b) AI-driven credit assessments, and user-friendly mobile applications
BNPL in India Industry Report
The Buy Now Pay Later (BNPL) services market in India is experiencing substantial growth, driven by the expanding e-commerce sector and the increasing adoption of digital payment methods. According to Mordor Intelligence™ Industry Reports, the BNPL market in India is segmented by channel, enterprise size, and various end-user industries such as healthcare, consumer electronics, fashion, and retail. Online channels dominate the BNPL industry in India, facilitating the growth of small and medium-sized enterprises by offering flexible payment solutions that cater to the evolving needs of modern consumers. Large enterprises utilize their financial strength and brand recognition to effectively implement BNPL services, attracting a broader customer base. The healthcare sector, in particular, has seen notable growth in BNPL usage, providing consumers with manageable installment plans for significant medical expenses. This expansion is further supported by strategic partnerships between BNPL providers and e-commerce platforms, enhancing consumer satisfaction and driving market growth. The synergy between the thriving e-commerce landscape and BNPL services creates a dynamic environment for sustained market expansion, making BNPL a popular payment choice across various consumer segments in India. For a detailed market forecast outlook and historical overview of the BNPL market size in India, access a free report PDF download from Mordor Intelligence™.
