India Buy Now Pay Later Market Outlook to 2026

Cascading Growth Driven by One-Click Payment Ease, Unmatched Expediency Among Lending Solutions and Free of Cost Deferment of Payments, Rising Adoption by Merchant Payments Due to Increase in Customer Conversion and Sales Value

The report titled “India Buy Now Pay Later Market Outlook to 2026: Cascading Growth driven by one-click payment ease, unmatched expediency among lending solutions and free of cost deferment of payments, coupled with rising adoption by Merchant Payments due to increase in Customer Conversion and Sales Value” provides a comprehensive analysis of the fast-growing Buy Now Pay later market, and the financing ecosystem of such a service in India. The report focuses on the Buy Now Pay later market size, analysis of Global Buy Now Pay Later Space and Indian Digital Lending Sector, while taking a look at how impact of COVID-19 has changed the purchase behavior of Indian Consumers which has led to the rise of this market, what are the major growth drivers of this market and issues, challenges and risks faced by both consumers and Buy Now Pay Later (“BNPL”) companies. The report also focuses on Demand side analysis, including consumer segmentation of Buy Now Pay Later consumers by age group, and Consumer Persona Analysis.

The report deep dives into the current BNPL Companies such as Lazypay,Simpl, Zest Money, Kreditbee, Cashe, ePayLater, Capital Float (Amazon Pay Later service provider), Flipkart Paylater, Ola Money postpaid, Slice, Postpe, Dhani Onefreedom Card, covering the market share of such companies in the BNPL Space in India , By Gross Merchandise Value (“GMV”) loaned to consumers, revenue growth of BNPL companies from FY’19-FY’21, and in-depth study of investments made to these players over the last 5 years, including details of investors, funding rounds and funding amount. A thorough cross-comparative analysis of BNPL companies is included in the report across various parameters such as demand side decision making (onboarding process, customer praise points, customer pain points, brand image, etc), competitive assessment (Unique Selling point, Lending partners, Merchant Partners, Average daily transactions,
The report also includes Case Studies of niche players in the BNPL space such as SaveIN, a healthcare BNPL service provider, and ePayLater, a B2B BNPL service provider, along with interviews from their respective founders to shed some light in these niche spaces in the market.

The report concludes with future outlook for the market along with projections of the BNPL market, along with recommendations on Best practices specific to this market and segment analysis, highlighting major opportunities for growth in this market.

Indian Buy Now Pay Later Market

Indian Buy Now Pay later market grew at a CAGR of ~321 % by Gross merchandise value (total value of the loans disbursed to consumers), during FY’19-FY’21. The Average ticket size has shown a ~24x growth in the same period as well.

India Buy Now Pay later Market Segmentation

E-commerce, and food aggregators provide majority GMV with ~38% of market share in the total GMV of BNPL market in India. Online transactions are prevalent compared to offline PoS transactions, and South zone accounts for majority of the demand for BNPL services.

Demand Side Analysis: 26-35 Years age group is the prime segment of BNPL users, with ~40% of market share of the total Gross Merchandise Value (“GMV”). 26-35 Years bachelor population in metro cities with recent employment, lack of credit line and frequent 18-25 years population E-commerce users in metro cities are the earliest adopters of BNPL services. Thriving E-commerce and convenience offered by BNPL services are primary reasons for users to adopt Pay Later practices.

Competition Scenario among BNPL Players:

The India BNPL market consists of:

• App-based BNPL players, such as Lazypay, Simpl, Zest money, Cashe
• E-Commerce/Travel Aggregators offering BNPL Services such as Amazon Pay Later (Capital Float), Flipkart Pay Later, and Ola Money Postpaid
• Card Based BNPL Players such as Postpe, Slice and Dhani Onefreedom Card
• M-wallet players offering BNPL services such as Freecharge Pay Later, Paytm Postpaid, and Zip pay Later by Mobikwik

Lazypay leads the BNPL market with ~39% of the total Gross Merchandise Value (“GMV”) followed by players such as Capital Float (Amazon Pay Later) and Zest Money.

Comparative Landscape of India Buy Now Pay Later Market

• Low penalty for payment delay, app stability, fast customer issue addressing are among major features commended by customers. Even among niche players, adoption has been driven by ease of on-boarding of new customers.
• E-commerce BNPL players such as Flipkart Pay Later, and Amazon Pay Later (Capital Float) have shown largest surge in their revenues from FY’19 to FY’21
• The total funding for BNPL players has been valued at ~1.6 billion dollars as of CY’21; Postpe, Slice and Capital Float are the most funded BNPL companies

India Buy now Pay later Market Future Outlook and Projections

The Used Buy Now Pay later Market in India is anticipated to grow with the growing adoption of smart phones and internet penetration, credit demand unfulfilled by credit cards, and convenience offered by BNPL platforms. Over the forecast period FY’22-FY’26, the India Buy Now Pay Later Market is further anticipated to showcase an upward trend in terms of Gross Merchandise Value (“GMV”) and average ticket size, much faster than the earlier years, with the market consistently expanding. Expected RBI regulations are expected to make the market more secure for customers as well.

Key Segments Covered in India Buy Now Pay Later Market

• Indian Buy Now Pay Later Market Size and Segmentation
• Analysis of BNPL market as a part of Digital Lending Sector In India
• India Buy Now Pay Later Market Size, By GMV, In INR Crores, FY’19-FY’21
• Trend Analysis of Average Value per Transaction, In INR, FY’19 to FY’21
• Segmentation, By Mode of Payment (Online vs Offline), In INR Crores, FY’21
• Segmentation, By Lending Channels (such as E-commerce retail, Food aggregators, travel aggregators, etc.), In INR Crores, FY’21
• Segmentation, By Geography, In INR Crores, FY’21
• Demand Side Analysis of the Buy Now Pay Later Market in India
• Consumer Segmentation of the BNPL Space, By Age Group, FY’21
• Cross Comparison of Major BNPL Players across major decision making parameters (such as onboarding process, ease of use, brand image, customer ratings, issues and praise points by customers)
• Supply Side Analysis of the Buy Now Pay Later Market in India
• Market Share (By Gross Merchandise Value Loaned to customers, in INR), and Average daily Transactions (In INR), of Major Buy Now Pay Later Players in India, FY’21
• GMV Growth Analysis of Major Players in the BNPL Space, By Gross Merchandise Value Loaned to customers, in INR, FY’19-FY’21
• Investment Analysis of the BNPL Players (Funding Rounds, total investments from FY’16-FY’21, Investors)
• Comparative Assessment, By:
• Vintage
• Office Location
• Number of Employees
• Holding Company
• USP
• Merchant Partners
• Lending Partners
• Case Study of Niche BNPL Players
• Case Study 1: EPayLater, the leading B2B BNPL Player in India
• Outlook and Projections of the BNPL Market in India, FY’22 - FY’26
• Future of Lending Channels of BNPL Space in India
• Expected Changes in Regulations as proposed by RBI
• Market Size of Buy Now Pay Later Market in India and Projected Ticket Size, by GMV (INR), FY’22-FY’26

Key Target Audience

• Scheduled Commercial Banks
• Non-Banking Financing Companies
• Buy Now Pay Later Companies
• E-Commerce Platforms
• Payment Gateway Companies
• Online Food Aggregator Companies
• Online Cab/bus/flight booking platforms
• Online Streaming Services
• Healthcare Chains

Time Period Captured in the Report

• Historical Period: FY’16-FY’21
• Forecast Period: FY’22-FY’26

Major Buy Now Pay Later Companies in India

• App-based BNPL Players
• Lazypay
• Simpl
• Zest Money
• Kreditbee
• Cashe
• ePayLater
• Platform based (e-commerce, online travel aggregators)
• Capital Float (Amazon Pay Later service provider)
• Flipkart Paylater
• Ola Money postpaid
• Card based Players
• Slice
• Postpe
• Dhani Onefreedom Card
• M-wallets offering BNPL Services
• Freecharge Pay Later
• Paytm Postpaid
• ZipPay later by Mobikwik
• Banks offering BNPL Services
• Pay Later by ICICI

 

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• TAM/SAM/SOM Analysis
• Customer Cohort Analysis
• Marketing Initiatives
• White Space Opportunity Analysis
• Interactive Data Visualizations
• Customization: 20 Analyst Hours
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