logo

India Buy Now Pay Later Services Market Size (2024 - 2029)

The market size of India's Buy Now Pay Later (BNPL) services has seen substantial growth, primarily driven by the convenience and flexibility it offers to consumers, particularly the younger generation and online shoppers. The primary segment of the BNPL market is the 26 to 35 age group. The service has empowered consumers to afford expensive purchases and manage their finances better by spreading payments over time. The pandemic has further boosted the market size, with an increase in online shopping and digital payments. The major products purchased through BNPL include clothing and electronics. Despite a significant portion of Indians lacking access to credit, the market has witnessed considerable growth, with various players experiencing a surge in their growth rates. The low penalties for late payments, reliability, and swift customer service resolution have been key contributing factors to this growth.

Home Market Analysis Financial Services and Investment Intelligence Research Fintech Research Lending Research Buy Now Pay Later Research BNPL Industry in India Market Size

Market Size of India Buy Now Pay Later Services Industry

India Buy Now Pay Later Services Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 10.00 %
Market Concentration Medium

Major Players

India Buy Now Pay Later Services Market Major Players

*Disclaimer: Major Players sorted in no particular order
setting-icon

Need a report that reflects how COVID-19 has impacted this market and its growth?

India BNPL Market Analysis

India's Buy Now Pay Later Services Market has generated a revenue of USD 8 billion in the current year and is poised to register a CAGR of 10% for the forecast period. 22% of consumers in India bought goods using BNPL services. The 26 to 35 age group is the primary segment of the BNPL market in India. Nearly 70 million Indians have access to credit, accounting for 7% of India. Still, 93% of Indians do not have access to credit.

The BNPL market in India has gained popularity due to its convenience and flexibility, especially among the younger generation and online shoppers. It has enabled consumers to afford expensive purchases and manage their finances better by spreading payments over time. The pandemic turned people towards online shopping, increasing digital payments and easy tax-free loans driving. 71% have been purchasing more items online since the pandemic. Clothing and Electronics are the major products purchased by BNPL service.

Lazy Pay witnessed a 400% growth in the last two years, with 296 merchant partners offering simple as a payment option. Customers like the low penalty for late payments, the app's reliability, and the speed with which customer issues are resolved. Even among niche players, the flexibility of onboarding new consumers has fueled adoption.

India BNPL Industry Segmentation

Buy Now Pay Later is a short-term financing. Consumers can purchase the products and pay later with no interest. India's Buy Now Pay Later Services Market is segmented by Channel (Online and POS), by Enterprise (Large enterprise and small & medium enterprise), and by end-user (Consumer electronics, Fashion & garments, Healthcare, Leisure and entertainment, Retail, and others). India's Buy Now Pay Later Services Market is segmented by Channel (Online and POS), by Enterprise (Large enterprise and small & medium enterprise), and by end-user (Consumer electronics, Fashion & garments, Healthcare, Leisure and entertainment, Retail, and others). The report offers market size and forecasts for the India Buy Now Pay Later Services Market in value (USD) for all the above segments.

By Channel
Online
POS
By Enterprise
Large Enterprise
Small & medium enterprise
By End-user
Consmer electronics
Fashion & garments
Healthcare
Leisure & entertainment
Retail
Other End-users

India Buy Now Pay Later Services Market Size Summary

India's Buy Now Pay Later (BNPL) Services Market has experienced significant growth, with a considerable increase in revenue. The primary segment of the BNPL market in India is the 26 to 35 age group, with a large proportion of consumers using these services to purchase goods. Despite a significant number of Indians having access to credit, a vast majority still do not. The popularity of BNPL services has increased due to their convenience and flexibility, particularly among younger generations and online shoppers. These services have allowed consumers to make expensive purchases and manage their finances more effectively by spreading payments over time. The shift towards online shopping and digital payments during the pandemic has further driven the market's growth. The surging e-commerce and digital P2M payments have boosted the BNPL market in India. The digitization of the economy and provision of affordable internet have contributed to the growth in digital sales. BNPL has become a preferred mode of payment for e-commerce transactions, expanding the customer base for these services. The rise in consumer spending has positively impacted the BNPL industry, fostering innovation and competition. To attract and retain customers, BNPL service providers are offering competitive terms, improved user experiences, and additional features. This growth in consumer spending has attracted the attention of financial institutions, retailers, and e-commerce platforms, leading to increased partnership opportunities for BNPL service providers.

Explore More

India Buy Now Pay Later Services Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing e-commerce adoption

      2. 1.2.2 Rising middle class and disposable income

      3. 1.2.3 Access to credit and financial inclusion

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of financial literacy

      2. 1.3.2 Data privacy and security concerns

    4. 1.4 Insights on Various Regulatory Landscape

    5. 1.5 Insights on impact of technology and innovation in the market

    6. 1.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Buyers

      2. 1.6.2 Bargaining Power of Suppliers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitutes

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Channel

      1. 2.1.1 Online

      2. 2.1.2 POS

    2. 2.2 By Enterprise

      1. 2.2.1 Large Enterprise

      2. 2.2.2 Small & medium enterprise

    3. 2.3 By End-user

      1. 2.3.1 Consmer electronics

      2. 2.3.2 Fashion & garments

      3. 2.3.3 Healthcare

      4. 2.3.4 Leisure & entertainment

      5. 2.3.5 Retail

      6. 2.3.6 Other End-users

India Buy Now Pay Later Services Market Size FAQs

The India Buy Now Pay Later Services Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)

Lazypay, Paytm Postpaid, Zest money, Free charge and Simpl are the major companies operating in the India Buy Now Pay Later Services Market.

BNPL Market in India Report Snapshots

Buy Now Pay Later Market in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)