India boasts the highest fintech adoption rate worldwide, at an impressive 87%. This remarkable figure can be attributed to various factors, including a vibrant youth demographic favouring online commerce. With over 50% of the country's population being 25 years and older, the propensity of young consumers to explore and purchase products through smartphones has catalyzed significant growth in India's digital payments ecosystem.
In fact, India led the global market regarding real-time payment volume in 2021. Amidst this diverse range of payment options, the emergence of the "Pay-later" concept has gained prominence, particularly within the Buy now pay later fintech vertical. This specialized segment has redefined India's digital payment landscape by providing interest-free credit options to young borrowers, addressing a previous gap in the market.
As one of the fastest-growing online payment methods in e-commerce, Buy now pay later is projected to account for 14% of all e-commerce transactions by 2026, nearly five times its current share in 2021.
In addition, finding a trusted platform that offers a seamless experience for online bill payments, the convenience of delayed payments, and the thrill of purchasing everything on your wish list is essential. With such a platform, you can enjoy the flexibility of managing your finances while avoiding the traditional is of credit card online.
Factors Driving the Rapid Adoption of BNPL
Affordability and Convenience
The buy now pay later (BNPL) model has gained significant traction among young consumers due to its ability to enhance affordability. This segment aspires to improve their lifestyles by accessing various online options and conveniences. However, many lack credit cards, which traditional banks hesitate to issue due to their limited credit history. Moreover, some individuals are wary of credit cards' high-interest rates. The limited penetration of credit cards in India, with only 67 million in circulation as of July 2021, further highlights this gap.
With the concept of Buy now pay later, consumers can make purchases in advance and defer payments, with the option of interest-free credit if repayment is made within the designated timeframe. Furthermore, BNPL platforms leverage technology to evaluate applicants' creditworthiness, ensuring instant loan approvals—a feature that strongly resonates with young generations accustomed to instant online gratification. Additionally, BNPL eliminates waiting for the next paycheck to afford desired products.
Immersive Digital Experiences in the Age of Apps
In today's digital era, powerful apps have transformed how consumers engage with brands, shop, and make payments, surpassing the traditional use of credit cards online. These apps offer immersive digital experiences that extend beyond mere payment transactions, leveraging data and emerging technologies to create captivating interactions.
The buy now pay later (BNPL) mode of payment seamlessly integrates across various brands' checkout processes, providing an alternative to credit card online payments. Spanning industries such as fashion, healthcare, travel, electronics, education, and wellness, these apps allow consumers to initiate the loan process with just a simple click. In addition, with swift approvals for a credit line, users can conveniently purchase products and services from multiple brands without relying on traditional credit cards.
The convenience provided by credit lending apps like LazyPay is unparalleled, going beyond the ability to secure credit within 90 seconds. Alongside facilitating financial transactions, these apps encompass a wide range of services, including social interactions, budgeting tools, credit history checks, and the tracking of cashback and discounts.
Empowering Offline Purchases
The rise of buy now pay later (BNPL) in India is not limited to e-commerce but also extends its support to offline stores. With the introduction of digital cards like LazyCard by LazyPay, BNPL enables a broader range of purchases, including payments at nearby grocery stores and petrol pumps. This expansion allows BNPL to reach deeper into Tier-II and Tier-III cities, where internet connectivity is rapidly advancing.
According to a report, by 2025, the number of active internet users in rural areas is expected to surpass that of urban areas in India. As BNPL continues to bridge the gap between online and offline transactions, it is set to empower consumers across the country, transforming how they make payments and fueling the growth of digital commerce in all corners of India.
Conclusion
In the world of consumer finance, buy now pay later (BNPL) is redefining how customers access credit. By seamlessly integrating the latest user interface and user experience (UI/UX) designs with your favourite brands, BNPL is transforming the economics of traditional lending. This innovative payment method offers convenience and encourages repeat purchase behaviour.
For a seamless experience, choose a trusted platform like LazyPay that brings the ease of online bill payments, the exclusivity of a premium service & the excitement of purchasing everything on your wish list to pay later!
Start shopping with LazyPay today and enjoy the freedom of delayed payments.
