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

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 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.

 

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.

 

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.

 

• 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

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, issueas 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

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

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 

Key Topics Covered in the Report

• Global E-Commerce and Online Food Delivery Market Snapshot
• The Global Buy Now Pay Later Market Overview
• Buy Now Pay Later and the Fintech Ecosystem in India
• India Digital Lending Sector Snapshot
• The Impact of COVID19 in customer behavior
• India Buy Now Pay Later Market Ecosystem
• Value Chain Analysis of India Buy Now Pay Later Market
• Why is the BNPL market picking up traction in India?
• Regulatory landscape of BNPL Market
• Issues, Challenges and Risks in the Buy Now Pay Later Market in India
• SWOT Analysis of the Buy Now Pay Later Market in India
• 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)
• Segmentation, By Lending Channels (such as E-commerce retail, Food aggregators, travel aggregators, etc.)
• Segmentation, By Geography
• Consumer Segmentation of the BNPL Space, By Age Group, FY’21
• Adoption Rationale of BNPL Services
• Cross Comparison of Major BNPL Players across major decision making parameters (such as onboarding process, ease of use, brand image, customer ratings, issueas and praise points by customers)
• Market Share (By GMV), and Average daily Transactions, of Major Buy Now Pay Later Players in India, FY21
• GMV Growth Analysis of Major Players in the BNPL Space, FY’19-FY’21
• Investment Analysis of the BNPL Players
• A look at Investment rounds of Major BNPL Players
• Comparative Assessment: Company Overview (Vintage, Office Location, Number of Employees, Holding Company)
• Comparative Assessment: USP, Number of Users, Merchant Partners and Lending Partners
• Case Study 1: EPayLater, the leading B2B BNPL Player in India
• Case Study 2: SaveIN, a BNPL Player dedicated to healthcare
• Future of Lending Channels of BNPL Space in India
• Expected Changes in Regulation 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
• Industry Best Practices
• Opportunities in the demand side
• Industry Speaks