India Buy Now Pay Later (“BNPL”) Market is expected to grow at a CAGR of ~400% between FY’21 to FY’26: Ken Research
- Increasing smart phone and internet penetration, credit demand unfulfilled by credit cards, and convenience offered by BNPL platforms are some major growth drivers of the BNPL Market in India.
- Younger Indian population has led to easier adoption of such a new technology, with aspirational consumers driven by lifestyle needs and increasing digital native population has contributed to the growth of this market.
- 26-35 Years age group is the prime segment of BNPL users, with ~40% of market share of the total Gross Merchandise Value (“GMV”).
- Lazypay leads the BNPL market with ~39% of the total GMV followed by players such as Capital Float (Amazon Pay Later) and Zest Money
Regulation Changes by RBI: Introduction for policies regarding credit reporting, data storage, eligibility of BNPL companies has been recommended by RBI to Government of India and BNPL companies. Such policies include setting up of an independent body styled as Digital India Trust Agency (DIGITA) which will be responsible for regulating digital authenticity of apps.
Optimistic Growth of Merchant Partner Segments: All the major lending channels such as online food delivery platforms, E-commerce, online ride hailing and cab market, are predicted to have an optimistic growth rate of >20% on an average with food delivery market is poised to grow the most with ~30% CAGR from FY’21 to FY’26
Rise of Niche vertical focused BNPL Players: Healthcare sector is expected to grow at ~16% CAGR from FY’21 to FY’26, where a high demand and quick adoption of BNPL services is expected. Furthermore, retail and B2B BNPL services have seen a rise in terms of GMV as well.
Securing safety standards of BNPL Service providers: RBI’s proposal for localized data storage, constructing consumer consent policies in accordance to RBI regulations, and making logs of customer usage of apps auditable will improve security standards of BNPL services, further increasing adoption.
Integrating UPI with BNPL: A major optimistic regulation that will be beneficial to BNPL market will be the integration of UPI with BNPL services, effectively registering BNPL functionalities with National Payments Corporation of India (“NPCI”).
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 Partners due to increase in Customer Conversion and Sales Value” by Ken Research suggests that the India Buy Now Pay Later market is expected to grow further in the near future, with increasing adoption of alternative credit line among younger population of India. The market is expected to register a positive CAGR of ~400% in terms of GMV, during the forecast period of FY’21-FY’26.
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)
- Segmentation, By Lending Channels (such as E-commerce retail, Food aggregators, travel aggregators, etc.)
- Segmentation, By Geography
- 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
- Revenue 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
- Case Study 2: SaveIN, a BNPL Player dedicated to healthcare
- 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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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
- Revenue 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
For more information on the research report, refer to below link:
India Buy Now Pay Later Market Size & Trends Report 2026
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