RBI pushes FinTechs to provide offline solutions
The Buy Now Pay Later (BNPL) Gross Merchandise Value in India will record a CAGR of 24.2% over the next seven years, increasing to US$52,827.2 million by 2028 from US$6,990.5 million in 2020, says a report by ResearchAndMarkets.
Thev BNPL payment in the country is expected to grow by 65.5% on annual basis to reach US$11,570.7 million in 2021, according to the Q4 2020 BNPL Survey.
Medium to long term growth story of BNPL industry in India remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 24.2% during 2021-2028, said the report “India Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook – 75+ KPIs.
BNPL providers are tapping into a wide pool of Gen Z and millennials consumers who are wary of using credit cards in India. That said, the coronavirus induced lockdown, job losses, salary cuts, and uncertain incomes have helped the surge of already rising BNPL popularity in India, said the report released on 20 April 2021.
For instance, LazyPay, one of the key players in the BNPL payment method in India, has seen a surge in its overall customers and is currently serving over 30 million users in India.
Simpl, another BNPL payment provider in the country witnessed a 40% increase in transactions for daily essentials from hyper-local merchants, after the coronavirus outbreak. Growing popularity of BNPL payment method is attracting several big players such as Paytm who are looking to enter the BNPL market.
India is expected to be one of the fastest-growing markets when it comes to the adoption of BNPL and digital payment, mainly because of its demographics and high youth population percentage, said the report.
Moreover, to overcome the internet network constraints, especially in rural areas, the Reserve Bank of India is pushing FinTech companies to deploy and provide offline solutions. The wider availability of BNPL payments is expected to be the next big thing pushing the growth of this segment in the country.
The report details market opportunities across 40 market segments in Buy Now Pay Later for the period 2019-2028 and identifies opportunities in India. It captures essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction across end-use segments.
Companies in the race for market share are Edeka Zentral AG & Co KG, Schwarz Beteiligungs GmbH, Aldi Group, Rewe Group, Amazon.com Inc, dm-Drogerie Markt GmbH & Co KG, Tengelmann Group, Dirk Rossmann KG, Globus Holding GmbH & Co, Inter Ikea Systems BV, H&M Hennes & Mauritz AB, Otto Group, Bauhaus GmbH & Co Kg, Intersport International Corp (IIC), Hudson’s Bay Co and Muller Ltd & Co KG among others. #technology #banking #investment #fintech #commerce #retail /fiinews.com
