The worldwide corona crisis resulted in a significant change in how customers engage with brands. Digital adoption surged when lockdowns and mobility limitations were put in place. Online shopping has become famous for practically everything, including apparel and consumables. Due to this, internet payments skyrocketed, and the Buy Now Pay Later (BNPL) market for consumer loans also saw development.
BNPL stands for short-term microcredit choices that let customers purchase online and make payments with little or no interest within days or weeks. Beginning with e-commerce marketplaces, BNPL choices are now available on platforms for delivering groceries, meals, trips, and other necessities.
Before the outbreak, BNPL solutions were developed in India to address the enormous gap in consumer credit. Only 3.33%, or 3 Crore, of India’s 900 million banked citizens have individual credit cards. The lack of credit availability for small-ticket purchases represented a huge potential for Indian BNPL players. A new study predicts that BNPL payments in India will increase by 65.5% yearly, reaching USD1.1 billion in 2021.
Mentioned-below are the BNPL applications in India:
Simpl
Simpl, founded in 2015, has become a significant competitor in India’s Buy Now Pay Later market. The startup’s mobile-first technology allows individuals to pay for online purchases with a single tap and delivers rapid account approval. The Simpl account is a central repository for all online expenditures, including a 15-day balance clearance requirement. Although the company doesn’t charge interest, payment failures may result in fines.
Zest Money
One of India’s quickest fintech companies, ZestMoney, was founded in 2016. Due to the firm’s distinctive offering, customers may order online and make payments in convenient instalments afterwards. The startup’s platform makes consumers unable to get loans for purchasing products through conventional channels and access to finance through digital technology, electronic payments, and intelligent systems (AI).
LazyPay
Offerings from ZestMoney and Simpl are combined in LazyPay. Users may purchase online with a single touch, pay their bills every 15 days, or convert their bills to equal monthly payments (EMIs). Additionally, the firm offers credit choices up to about US$1300 (INR 100,000). And over 250 businesses in India accept LazyPay. The software offers little paperwork and paperless finance disbursal.
Flexmoney
Flexmoney runs InstaCred, an instantaneous credit system with a critical presence in the Indian BNPL industry. Banks and other financial institutions may provide financing alternatives with their brands on various internet platforms thanks to InstaCred. The portal also offers numerous payment methods like LazyPay, which lets users select between complete purchases and EMIs. The firm, unlike LazyPay, does not provide funding out of its pocket. Linking lenders with online retailers makes it possible for them to reach a larger audience and penetrate the BNPL market.
Paytm Postpaid
With its Postpaid product, global payments leader Paytm joined the BNPL market in India in 2019. Users of Paytm’s Postpaid service can purchase instantly and pay off their debt the following month. Every month, bills are created on the first and can be settled through the 7th of the following month. In addition, comparatively longer-term lending terms are offered here than by other Indian BNPL participants.
