India Buy Now Pay Later Services Market Size (2024 - 2029)

The Buy Now Pay Later market in India is experiencing significant growth, driven by its appeal to consumers seeking convenience and flexibility in managing expenses. This market's expansion is particularly notable among the younger demographic and online shoppers, who benefit from the ability to spread payments over time. The shift towards digital payments and the increase in online shopping, accelerated by the pandemic, have further propelled the market's growth. Despite a large portion of the population lacking access to credit, the market continues to thrive, with niche players contributing to its expansion through flexible onboarding processes.

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Market Size of India Buy Now Pay Later Services Industry

India Buy Now Pay Later Services Market Summary
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

India Buy Now Pay Later Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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
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India Buy Now Pay Later Services Market Size Summary

The Buy Now Pay Later (BNPL) market in India is experiencing significant growth, driven by the increasing adoption of digital payment solutions and the rise of e-commerce. This payment model has gained traction due to its convenience and flexibility, particularly among younger consumers and online shoppers. The pandemic has further accelerated this trend, as more people turned to online shopping, boosting digital payments and the popularity of BNPL services. The market is characterized by a diverse range of players, including established companies and new entrants, all vying for a share of the expanding consumer base. Major products purchased through BNPL services include clothing and electronics, with the ease of integrating these services into online platforms enhancing their accessibility and appeal.

The competitive landscape of the BNPL industry in India is dynamic, with key players like Lazypay, Paytm Postpaid, Zest Money, Free Charge, and Simpl leading the market. These companies are focusing on offering competitive terms, flexible repayment options, and superior customer experiences to differentiate themselves. The rise in consumer spending has not only fueled growth but also fostered innovation and competition, attracting the attention of financial institutions, retailers, and e-commerce platforms. Partnerships are becoming increasingly common, as these entities seek to enhance customer experiences and drive sales through the integration of BNPL services. The market's expansion is supported by technological advancements and service innovations, which are expected to continue shaping the industry's competitive dynamics.

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India Buy Now Pay Later Services Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing e-commerce adoption

      2. 1.2.2 Rising middle class and disposable income

      3. 1.2.3 Access to credit and financial inclusion

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of financial literacy

      2. 1.3.2 Data privacy and security concerns

    4. 1.4 Insights on Various Regulatory Landscape

    5. 1.5 Insights on impact of technology and innovation in the market

    6. 1.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Buyers

      2. 1.6.2 Bargaining Power of Suppliers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitutes

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Channel

      1. 2.1.1 Online

      2. 2.1.2 POS

    2. 2.2 By Enterprise

      1. 2.2.1 Large Enterprise

      2. 2.2.2 Small & medium enterprise

    3. 2.3 By End-user

      1. 2.3.1 Consmer electronics

      2. 2.3.2 Fashion & garments

      3. 2.3.3 Healthcare

      4. 2.3.4 Leisure & entertainment

      5. 2.3.5 Retail

      6. 2.3.6 Other End-users

India Buy Now Pay Later Services Market Size FAQs

The India Buy Now Pay Later Services Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)

Lazypay, Paytm Postpaid, Zest money, Free charge and Simpl are the major companies operating in the India Buy Now Pay Later Services Market.

BNPL Market in India Report Snapshots

Buy Now Pay Later Market in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)