Market Trends of India Buy Now Pay Later Services Industry
Surging E-commerce and Digital P2M Payments Boosting the Market
E-commerce in India is about to cross USD 100 billion soon. Digitizing the economy and providing cheap internet to the people are a few of the many reasons that boosted digital sales growth in India. Buy Now Pay Later is becoming a preferred mode of payment for e-commerce transactions. The growth of e-commerce has expanded the customer base for BNPL services. Online shoppers are increasingly opting for BNPL options at the checkout, as it offers them a convenient and flexible payment solution for their purchases. The ease of integrating BNPL services into online platforms has made it accessible to a broader range of consumers. BNPL services have contributed to an increase in the average order value for e-commerce transactions. By allowing consumers to make larger purchases and pay in installments, BNPL services have empowered consumers to afford expensive products that they may not have been able to purchase upfront. This has resulted in higher sales volumes and revenues for e-commerce platforms.
Rise in Consumer Spending Driving the Market
The rise in consumer spending has had a positive impact on the Buy Now Pay Later (BNPL) industry. Increased consumer spending levels create more opportunities for BNPL services to thrive and grow. The rise in consumer spending has fostered innovation and competition within the BNPL industry. To attract and retain customers, BNPL service providers strive to offer more competitive terms, improved user experiences, and additional features. This leads to increased innovation and a better overall experience for consumers. The growth in consumer spending has attracted the attention of financial institutions, retailers, and e-commerce platforms. This has led to increased partnership opportunities for BNPL service providers. Financial institutions may collaborate with BNPL companies to offer their customers flexible payment options. At the same time, retailers and e-commerce platforms may integrate BNPL services into their checkout process to enhance the customer experience and increase sales.
