Buy now Pay later businesses set to surge ten-fold

Buy Now Pay Later industry is booming and set to surge over ten-fold within last few years as millions of shoppers get lured by interest free credit with fewer hassles, according to the market players.

Redseer estimates India’s BNPL market will rocket to $45-50bn by 2026 from $3-3.5bn now. The research company also estimates that the number of BNPL users in the country may rise to 80-100mn clients till then, from 10-15mn right now.

However, since the maximum credit right now offered on BNPL is 100,000rs. Lower than the credit card offers, it will take time before it can disrupt the market share.

Fintech company MobiKwik sees BNPL business nearly doubling for the firm in two years, in a country where millions of people have less access to formal credit.

MobiKwik which is among the top BNPL players in India and is backed by the Abu Dhabi Investment Authority.

Upasana Taku, co-founder of the firm said, “Only 60-70mn Indians have access to the credit right now, which means 93% of India has no credit access”.

It will become the fastest revenue generator for the business because there has been 45x growth in the BNPL transactions in last two years.