India Buy Now Pay Later Services Market Size was valued at USD 8.2 Billion in 2022. The buy now pay later services market industry is projected to grow from USD 9.04 Billion in 2023 to USD 19.814 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.30% during the forecast period (2024 - 2032). Some of the key market drivers driving the market are the growing need for BNPL services in the retail sector, the growing use of BNPL services in the healthcare sector, significant R&D efforts, and shifting consumer purchasing patterns.
Figure 1: India Buy Now Pay Later Services Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The introduction of the Buy Now Pay Later (BNPL) services model in India has generated a great deal of discussion. Presented as a game-changing option for small credit purchases, it's quickly taking the lead as millennials' preferred mode of payment. The microfinance business, which is expected to reach approximately USD 14,000 million by 2024, is especially successful in tier 2 and tier 3 cities and has an impressive annual growth rate of 22.9%. The growing market for Buy Now Pay Later (BNPL) services is stimulated by the robust E-commerce sector in India. Modern consumers' convenience-seeking behavior on internet buying platforms gives this symbiotic relationship impetus.
Buy Now Pay Later (BNPL) services' flexible and postponed payment alternatives fit in well with this trend and increase consumer satisfaction. Moreover, partnerships between E-commerce companies and Buy Now Pay Later (BNPL) suppliers enhance this mutual benefit and support a vibrant environment of growth. The Buy Now Pay Later (BNPL) services market is anticipated to benefit greatly from this connection as India's E-commerce sector continues to grow with a variety of products and increased consumer interaction. The aforementioned dynamic highlights the mutually beneficial association between the flourishing E-commerce industry in India and the rapidly growing market CAGR of the Buy Now Pay Later (BNPL) services market.
There are several uses for BNPL services in India in the healthcare sector. Patients utilize them frequently to cover the long-term costs of costly medical procedures and treatments. People can now obtain essential healthcare treatments without having to pay large upfront expenses, which increases accessibility and affordability. Additionally, by breaking up the cost into manageable installments, BNPL services let customers buy health and wellness products like supplements, medical equipment, and exercise gear. The industry is expanding as a result of the expanding alliances between BNPL service providers and pharmacies to provide flexible payment options for prescription drugs. In addition, the market expansion is being bolstered by the extensive use of services to obtain subscription-based healthcare features, like wellness memberships, mental health counseling, and telemedicine platforms. Thus, driving the India buy now pay later services market revenue.
The India Buy Now Pay Later Services market segmentation, based on channel, includes Online and POS. The online segment dominated the market mostly. Several organizations, including business-to-business e-commerce sites, have entered the Buy Now Pay Later (BNPL) market to support the growth aspirations of small and medium-sized businesses (SMEs) in India. BNPL is a growing market category among consumers and business leaders alike. As such, these organizations are aggressively pursuing investment rounds to expand their B2B BNPL offerings to a wider range of Indian businesses. With the internet becoming more widely available and digitalization driving India's e-commerce industry to reach a USD 100 billion milestone, the digital sales landscape has expanded.
The India Buy Now Pay Later Services market segmentation, based on enterprise, includes Large Enterprise and Small & medium enterprise. The large enterprise category generated the most income. It is explained by their large financial resources, well-established brand awareness, and larger clientele. Large businesses are frequently able to invest in and successfully execute Buy Now Pay Later (BNPL) services, which draws in a greater number of clients. They are positioned as leaders in utilizing this payment method to improve customer experience and promote sales growth because of their current consumer trust and stable finances, which provide a favorable climate for BNPL adoption.
The India Buy Now Pay Later Services market segmentation, based on end-user, includes Consumer Electronics, Fashion & Garments, Healthcare, Leisure & Entertainment, Retail, and Other End-Users. The healthcare category generated the most income. Indians spend large amounts of money on medical and health care each year. These expenses are paid for out of personal savings because the majority of people do not have insurance. In response, a growing number of Buy Now Pay Later (BNPL) firms are making inroads into the healthcare industry. QubeHealth has collaborated with companies such as Tavant Technologies and SmartWorks, providing healthcare products with deferred payment options. They help employees with costs not covered by employer-sponsored health insurance with their QubeHealth-Card.
The ease and flexibility of the BNPL market in India have contributed to its growth, particularly with younger consumers and internet shoppers. It has made it possible for customers to spread out payments over time and make costly purchases while also improving their financial management. Approximately 70 million Indians, or 7% of the population, have access to credit. 93% of Indians lack access to credit even now. The pandemic increased the number of people making digital payments and using cheap tax-free loans for driving, as well as online shopping.
After the pandemic, 71% of consumers had made more internet purchases. The two main items that BNPL service purchases are electronics and clothing. Moreover, in the past two years, Lazy Pay has grown 400%, and 296 merchant partners now accept simply as a form of payment. Consumers enjoy the app's dependability, the minimal late payment penalty, and the prompt resolution of consumer concerns. Adoption has been spurred by the flexibility of onboarding new customers, even among niche players.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the buy now pay later services market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the buy now pay later services industry must offer cost-effective items.
Major players in the buy now pay later services market are attempting to increase market demand by investing in research and development operations, including epayLater, Zest Money BNPL, Mobikwik ZIP, Flipkart pay later, Olamoney Postpaid, Simpl, Free charge, Lazy Pay, Flexmoney, Amazon Pay later, Money Tap, Paytm postpaid, Capital float, and Slice.
Zest Money BNPL
Flipkart pay later
Olamoney Postpaid
Simpl
Free charge
Lazy Pay
Flexmoney
Amazon Pay later
Money Tap
Paytm postpaid
Capital float
Slice
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 8.2 Billion |
| Market Size 2023 | USD 9.04 Billion |
| Market Size 2032 | USD 19.814 Billion |
| Compound Annual Growth Rate (CAGR) | 10.30% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Channel, Enterprise, End-user, and Region |
| Countries Covered | India |
| Key Companies Profiled | epayLater, Zest Money BNPL, Mobikwik ZIP, Flipkart pay later, Olamoney Postpaid, Simpl, Free charge, Lazy Pay, Flexmoney, Amazon Pay later, Money Tap, Paytm postpaid, Capital float, and Slice |
| Key Market Opportunities | ·        Increasing artificial intelligence (AI) technology integration with applications |
| Key Market Dynamics | ·        Growing acceptance of e-commerce ·        Increasing middle class and disposable income |
Frequently Asked Questions (FAQ) :
The India Buy Now Pay Later Services market size was valued at USD 9.04 Billion in 2023.
The market is projected to grow at a CAGR of 10.30% during the forecast period, 2024-2032.
The key players in the market are epayLater, Zest Money BNPL, Mobikwik ZIP, Flipkart pay later, Olamoney Postpaid, Simpl, Free charge, Lazy Pay, Flexmoney, Amazon Pay later, Money Tap, Paytm postpaid, Capital float, and Slice.
The online category dominated the market in 2023.
The healthcare category had the largest share of the market.
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