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India Buy Now Pay Later Business and Investment Opportunities

India Buy Now Pay Later Business and Investment Opportunities

According to PayNXT360, BNPL payments in the country are expected to grow by 71.5% on an annual basis to reach US$12,355.8 million in 2022. Medium to long term growth story of BNPL industry in India...

India Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update
Summary
According to PayNXT360, BNPL payments in the country are expected to grow by 71.5% on an annual basis to reach US$12,355.8 million in 2022.

Medium to long term growth story of BNPL industry in India remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 41.2% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$7,204.5 million in 2021 to reach US$97,717.0 million by 2028.

The buy now pay later (BNPL) market in India is the fastest growing industry around the world. As consumers, further shifts towards online payments, the adoption of the BNPL payment method has surged significantly in the country over the last two years. According to a report from Experian, BNPL transactions in India surged by 21% in H1 2022, which is 3% more than the global growth. 

Although the deferred payment method still lags behind mobile wallets and credit cards, the growing awareness and rising usage, particularly among high-income households, suggests that the payment method is on the verge of becoming mainstream in the country. As India continues to move toward building a robust digital ecosystem, the outlook for the BNPL market remains strong from the medium to long-term perspective.  

However, from a short-term perspective, new regulatory norms can impact market growth. In Jul 2022, the Reserve Bank of India banned the loading of prepaid payment instruments with credit lines, thereby alarming the rapidly growing BNPL industry in India. While the announcement is expected to have an impact in the short term, the regulated BNPL market is projected to lead to more innovation in the sector as players work on a more beneficial solution to fix the gaps in the sector. 

E-commerce platforms are raising funding rounds to expand BNPL services in India 

To help small and medium-sized businesses in India expand their operations, several players, including B2B e-commerce firms, are entering into the BNPL space, the segment which has been growing in popularity among both consumers as well as businesses. Consequently, to expand their B2B BNPL service to more and more businesses, firms are raising funding rounds in India. For instance, 

• In June 2022, Solv, the e-commerce marketplace for suppliers and buyers in the MSMEs segment, announced that the firm had raised US$40 million in its Series A funding round, which was led by SBI Holdings. Notably, the firm is planning to use the funding for further expanding its BNPL loans to more merchants in the country. As of June 2022, the firm has more than 220,000 KYC-verified MSMEs registered on its platform. 

• The firm has also developed a Solv scoring system, an alternative credit score, which allows thin-filed MSMEs to access loans on-demand. The e-commerce platform sells groceries, fast-moving consumer goods (FMCG), electronics and accessories, and home furnishing products, among others. In H1 2022, the firm attained a gross merchandise value (GMV) of more than US$260 million with over 60% average repeat purchases. By the end of 2022, the firm is planning to reach US$500 million GMV. 

As the BNPL market, both B2C and B2B continues to grow in India, PayNXT360 expects more firms to raise funding rounds. Moreover, as foreign players eye an expansion into the Indian market, consolidation trends will lead to more investment from global BNPL players in India over the next three to four years. 

Banking firms are forging strategic alliances with BNPL providers to offer deferred payment services to their customers in India 

Globally, an increasing number of traditional banks are entering the BNPL segment, either through launching their own service or partnering with pure-play BNPL providers. In India, similar trends are visible, where banking institutions are forging strategic alliances with BNPL providers. For instance,

• In June 2022, ICICI Bank, one of the leading private banks in India, announced that the firm had entered into a strategic partnership with ZestMoney to add a BNPL feature for its customers. Under the partnership, ICICI Bank is integrating the BNPL service offered by ZestMoney into its cardless EMI product. 

• Consumers using the cardless EMI product offered by ICICI Bank can use the BNPL service to make purchases of up to US$12,900 or INR 10,00,000. Initially, the service is made available for online transactions; however, the bank is expected to launch the same for in-store purchases soon. 

• Notably, ZestMoney is one of the leading BNPL players in the country, serving more than 17 million consumers. It has also raised investment from Zip Co, the Australian BNPL firm, in 2021. 

ICICI Bank is not the only private banking institution to introduce BNPL service for its customers. Some of the other players, such as Axis Bank and Kotak Mahindra Bank, have also launched the payment feature. PayNXT360 expects more banks to follow suit and launch a BNPL service for their customers over the next three to four years in India. 

BNPL is gaining increasing traction in the healthcare sector in India 
Every year, Indians spend billions of dollars on paying for health and medical bills. Moreover, with 3 out of 4 Indians uninsured, according to the Indian government, the entire medical cost is borne by Indians, which is paid through their savings. To allow Indians to spread their medical expenditure over a period of time, several BNPL startups have entered the market by targeting the healthcare sector in the country. For instance, 

• QubeHealth, which offers healthcare now and pay later products, has partnered with several corporate firms. Companies like Tavant Technologies and SmartWorks, among others, have collaborated with QubeHealth for its QubeHealth-Card, which allows employees to for their health and medical-related expenses that are not covered in their company-provided health insurance. 

• SaveIN, another BNPL startup focusing on the healthcare sector, is expanding rapidly in the country. The firm also raised US$3 million in July 2022, taking its total seed funding round to US$7 million. SaveIN is planning to use the funding round to grow its network of healthcare providers across the country while also investing a part of it into product development. 
From the short to medium-term perspective, PayNXT360 expects the BNPL market to record strong growth in the healthcare sector, as Indians are spending billions of dollars on health expenditure every year.
Scope
This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in India. Below is a summary of key market segments:

India BNPL Market Size and Spending Pattern
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis 

India Buy Now Pay Later Operational KPIs
• Buy Now Pay Later Revenues, 2019 – 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 – 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
• Buy Now Pay Later Accounts, 2019 – 2028
• Buy Now Pay Later Bad Debt, 2019 – 2028

India Buy Now Pay Later Market Share Analysis by Key Players (Simpl, PineLabs, Zest Money, Paytm, Lazypay)

India Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
• Online Channel
• POS Channel

India Buy Now Pay Later in Retail Shopping: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis 

India Buy Now Pay Later in Home Improvement: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

India Buy Now Pay Later in Other: Market Size and Forecast
• Gross Merchandise Value Trend Analysis 
• Average Value Per Transaction Trend Analysis 
• Transaction Volume Trend Analysis

India Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income 
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis
Reason to buy
• In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.

• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.

• Market Share by Key Players
Table of Contents
 1. About this Report
1.1 Summary
1.2 Methodology
1.3 Disclaimer

2. India BNPL Market Size and Future Growth Dynamics
2.1 Consumer Behavior
2.2 Competitive Landscape and Growth Strategies
2.3 Market Share
2.4 Regulatory Trends

3. India Buy Now Pay Later Industry Attractiveness
3.1 India Buy Now Pay Later – Gross Merchandise Value Trend Analysis, 2019-2028
3.2 India Buy Now Pay Later – Average Value Per Transaction Trend Analysis, 2019-2028
3.3 India Buy Now Pay Later – Transaction Volume Trend Analysis, 2019-2028

4. India Buy Now Pay Later Operational KPIs
4.1 Buy Now Pay Later Revenues, 2019 – 2028
4.2 Buy Now Pay Later Share by Revenue Segments
4.3 Buy Now Pay Later Merchant Commission, 2019 – 2028
4.4 Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
4.5 Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
4.6 Buy Now Pay Later Accounts, 2019 – 2028
4.7 Buy Now Pay Later Bad Debt, 2019 – 2028

5. India Buy Now Pay Later Spend Analysis by Channel
5.1 Buy Now Pay Later Market Share by Channel, 2019 – 2028
5.2 Buy Now Pay Later Online Channel Market Size and Forecast, 2019 – 2028
5.3 Buy Now Pay Later POS Channel Market Size and Forecast, 2019 – 2028

6. India Buy Now Pay Later Snapshot by End-Use Sector
6.1 Buy Now Pay Later Market Share by End-Use Sector – Emerging Avenues and Future Growth Prospects
6.2 Buy Now Pay Later Sales Uplift by End-Use Sector
6.3 Buy Now Pay Later Share by Retail Product Category

7. India Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019 – 2028
7.1 India Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis, 2019-2028
7.2 India Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis, 2019-2028
7.3 India Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis, 2019-2028

8. India Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019 – 2028
8.1 India Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis, 2019-2028
8.2 India Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis, 2019-2028
8.3 India Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis, 2019-2028

9. India Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast, 2019 – 2028
9.1 India Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis, 2019-2028
9.2 India Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis, 2019-2028
9.3 India Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis, 2019-2028

10. India Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019 – 2028
10.1 India Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis, 2019-2028
10.2 India Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis, 2019-2028
10.3 India Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis, 2019-2028

11. India Buy Now Pay Later in Other Segment: Market Size and Forecast, 2019 – 2028
11.1 India Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis, 2019-2028
11.2 India Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis, 2019-2028
11.3 India Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis, 2019-2028

12. India Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
12.1 Buy Now Pay Later Spend Share by Age Group
12.2 Buy Now Pay Later Gross Merchandise Share by Income
12.3 Buy Now Pay Later Gross Merchandise Value Share by Gender
12.4 Buy Now Pay Later Adoption Rationale

13. Further Reading
13.1 About PayNXT360
13.2 Related Research
List Of Table
Table 1: India Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 2: India Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 3: India Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 4: India Buy Now Pay Later – Revenues (US$ Million), 2019-2028
Table 5: India Buy Now Pay Later – Merchant Commission (US$ Million), 2019-2028
Table 6: India Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2019-2028
Table 7: India Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Table 8: India Buy Now Pay Later – Accounts (Thousand), 2019-2028
Table 9: India Buy Now Pay Later – Bad Debt (US$ Million), 2019-2028
Table 10: India Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Table 11: India Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Table 12: India Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 13: India Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 14: India Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 15: India Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 16: India Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 17: India Buy Now Pay Later Retail Shopping Home Improvement – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 18: India Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 19: India Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 20: India Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 21: India Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 22: India Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 23: India Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2019-2028
Table 24: India Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Table 25: India Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Table 26: India Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis (Thousand), 2019-2028
List of figures
Figure 1: PayNXT360’s Methodology Framework
Figure 2: India Buy Now Pay Later – GMV and Adoption Rationale
Figure 3: India Buy Now Pay Later – Share by Gender and Age Group
Figure 4: India Buy Now Pay Later – Market Share Analysis by Key Players (%)
Figure 5: India Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 6: India Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 7: India Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 8: India Buy Now Pay Later – Revenues (US$ Million), 2019-2028
Figure 9: Buy Now Pay Later Share by Revenue Segments
Figure 10: India Buy Now Pay Later – Merchant Commission (US$ Million), 2019-2028
Figure 11: India Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2019-2028
Figure 12: India Buy Now Pay Later Pay Now & Other Income (US$ Million), 2019-2028
Figure 13: India Buy Now Pay Later – Accounts (Thousand), 2019-2028
Figure 14: India Buy Now Pay Later – Bad Debt (US$ Million), 2019-2028
Figure 15: India Buy Now Pay Later – Gross Merchandise Value Market Share by Channel (%), 2019-2028
Figure 16: India Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2019-2028
Figure 17: India Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2019-2028
Figure 18: India Buy Now Pay Later – Market Share by End-Use Sector, 2021 Vs. 2028
Figure 19: India Buy Now Pay Later – Market Share by End-Use Segment, 2021
Figure 20: India Buy Now Pay Later – Market Share by Retail Product Category, 2021
Figure 21: India Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 22: India Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 23: India Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 24: India Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 25: India Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 26: India Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 27: India Buy Now Pay Later Leisure & Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 28: India Buy Now Pay Later Leisure & Entertainment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 29: India Buy Now Pay Later Leisure & Entertainment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 30: India Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 31: India Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 32: India Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 33: India Buy Now Pay Later Other Segment – Gross Merchandise Value Trend Analysis (US$ Million), 2019-2028
Figure 34: India Buy Now Pay Later Other Segment – Average Value Per Transaction Trend Analysis (US$), 2019-2028
Figure 35: India Buy Now Pay Later Other Segment – Transaction Volume Trend Analysis (Thousand), 2019-2028
Figure 36: India Buy Now Pay Later – Share by Age Group in Gross Merchandise Value Terms
Figure 37: India Buy Now Pay Later – Share by Income Group in Value Terms
Figure 38: India Buy Now Pay Later – Share by Gender in Value Terms
Figure 39: Buy Now Pay Later – Adoption Rationale Gross Merchandise Value Analysis
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