According to consultancy firm RedSeer, India’s (BNPL) Buy Now Pay Later market is estimated at $3-3.5 billion today but could probably grow by 2026 at $45-50 billion.
The number of BNPL users in the country may reach 80-100 million by 2026 from the 10-15 million considered currently that determined by The firm.
Fintechs have been disturbing consumer lending in ways that private banks usually stayed from away.
Traditionally, consumer loans are largely focused using three cases was offered by banks follows; home loans, personal loans, and salary overdrafts.
The new variety of fintech-based lenders had been now taken these steps besides offering credit for small-ticket purchases like food delivery and online grocery and other e-commerce categories.
The financing options like debit and credit card-based EMIs, but with a huge focus on smaller ticket purchases BNPL model is structured similar to existing check-out.
Debit- and credit card-based on EMI usually have an average trade size anywhere around 10,000-30,000, but at the same time on BNPL loans have an average trade size of just near 300-600 with zero interest charges.
The repayment cycle for BNPL is usually between 15-30 days, matched with 3-12 months in the EMI products.
What does meant by buy now, pay later? :
Buy now, pay later is a short-term financing option that allows buyers to make purchases and pay for them in equal installment payments, with the first payment expected at checkout.
The customer makes the installment payments to the BNPL provider and the merchant will pay in full at checkout.
What are the profits of the buy now, pay later? :
Customers have the options from 3 months to multiple years of buying items and paying for them with flexible terms ranging, depending on the improving the customer experience, provider, and making it frictionless. They can receive their item a full payment before finishing it.
The payments are interest-free, and which is sign-up is much faster than credit cards.
A BPNL option might attract customers who were previously hesitant to buy products because their budget was out of the price.
Lifestyle brand BlackCool says that its sales rocketed 600% after it launched its BNPL plans.
Its CEO claims that it brought in different demographics, including price-conscious buyers who may think our premium products price beyond their reach.
The providers with their community will expose a store’s products and brand to millions of potential customers.
Follow and connect with us on Facebook, LinkedIn & Twitter
