Summary

According to PayNXT360, BNPL payments in the country are expected to grow by 16.5% on an annual basis to reach US$17,153.3 million in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.7% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$14,718.1 million in 2023 to reach US$28,477.9 million by 2029.The BNPL industry is expected to grow at a steady pace over the medium term in India. The higher credit demand, among underbanked and underserved consumers, is supporting the uptake of BNPL products. This trend is projected to continue further in India in 2024. The booming e-commerce sector will also provide growth support to the Indian BNPL market over the medium term.
New entrants in the market are also raising funding rounds to scale their product offerings. While the market is poised for growth, rate hikes, and margin pinch have put BNPL firms in a tough spot. In Q4 2023, a few of the providers shut down BNPL services due to higher NPAs and growing losses. In the long term, however, the industry is expected to report strong growth due to rising demand and an improving macroeconomic environment.

BNPL startups are raising funding rounds to ramp up technology and drive adoption in India

The credit demand is growing at a rapid rate among consumers in India. The higher inflation and decline in disposable income are driving the credit demand. Consequently, to reach more consumers, BNPL firms are raising funding rounds from venture capital and private equity firms.

• SalarySe, the BNPL-focused financial services app, announced that the firm had raised US$5.25 million in a funding round in January 2024. The capital round was led by Surge Ventures and included participation from other investors like Pravega Ventures. The firm is planning to use the capital for ramping up its technology, while also targeting higher adoption of its product in the Indian market.
• Going forward, SalarySe is also aiming to launch a credit-on-UPI system for salaried employees. Consequently, the firm is entering into strategic collaborations with banking institutions, HR SaaS platforms, and employers. Notably, the National Payments Corporation of India (NPCI), launched the credit line on UPI facility in 2023 in India.
In 2024, PayNXT360 expects more venture capital and private equity funding to enter the BNPL sector in India. This will support innovation and a competitive landscape in the BNPL market over the next three to four years.

Rate hikes, margin pinch, and higher NPAs resulted in the downfall of BNPL firms in India

To combat the rising inflation, central banks have announced a series of rate hikes in 2023. This, in turn, resulted in a margin pinch for BNPL providers, which were once thriving in a low interest rate environment. Higher inflation also meant that consumer disposable income declined, resulting in higher borrowings and subsequently higher NPAs for BNPL providers. As a result, a few of the firms had to shut down their operations in the Indian market in Q4 2023.
• PayU India, for instance, made a decision to shut its BNPL prepaid card service LazyCard in November 2023. This is part of the firm's strategy to reduce losses while enhancing the overall business profitability. Notably, the firm launched the BNPL service in 2022.
• Zest Money, which was one of the leading BNPL firms in India, also closed operations in December 2023. The firm got stuck in a financial mess because it had too many bad loans, struggled to collect money effectively, and had a flawed business strategy. The firm, notably, was once valued at US$450 million in the Indian BNPL market.
While the macroeconomic environment is projected to improve over the medium term, the outlook for the sector remains bleak in the short term. Consequently, PayNXT360 expects providers to remain under pressure in Q1 2024.

BNPL platforms are looking to onboard an increasing number of merchants to drive growth

The meet the demands of consumers, BNPL firms are targeting more merchant partnerships in the Indian market. Simpl, for instance, announced that the firm is planning to onboard 10,000 merchants from the Delhi-NCR region over the next three to four years. The firm, as of June 2023, had over 26,000 merchants and more than 10 million customers registered on the BNPL platform. In 2024, PayNXT360 expects this trend to further continue across India. This will subsequently support the growth of the industry, while also driving the competitive landscape over the medium term.

The BNPL payment industry in India has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.


• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2020-2029). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.

• Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.

• Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.

• Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.

• Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in India.

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Table of Contents

1 About this Report
1.1 Summary
1.2 Methodology
1.3 BNPL Definitions
1.4 Disclaimer

2 India Buy Now Pay Later Industry Attractiveness
2.1 India Buy Now Pay Later – Gross Merchandise Value Trend Analysis, 2020-2029
2.2 India Buy Now Pay Later – Average Value Per Transaction Trend Analysis, 2020-2029
2.3 India Buy Now Pay Later—Transaction Volume Trend Analysis, 2020-2029
2.4 India Buy Now Pay Later Market Share Analysis by Key Players

3 India Buy Now Pay Later Operational KPIs
3.1 Buy Now Pay Later Revenues, 2020-2029
3.2 Buy Now Pay Later Share by Revenue Segments, 2020-2029
3.2.1 Buy Now Pay Later Revenue by Merchant Commission, 2020-2029
3.2.2 Buy Now Pay Later Revenue by Missed Payment Fee Revenue, 2020-2029
3.2.3 Buy Now Pay Later Revenue by Pay Now & Other Income, 2020-2029
3.3 Buy Now Pay Later Active Consumer Base, 2020-2029
3.4 Buy Now Pay Later Bad Debt, 2020 – 2024 – 2029

4 Buy Now Pay Later Spend Analysis by Business Model, 2020-2029
4.1 Buy Now Pay Later Two-Party Business Model, 2020-2029
4.2 Buy Now Pay Later Three-Party Business Model, 2020-2029

5 Buy Now Pay Later Spend Analysis by Purpose, 2020-2029
5.1 Buy Now Pay Later Convenience, 2020-2029
5.2 Buy Now Pay Later Credit, 2020-2029

6 Buy Now Pay Later Spend Analysis by Functional Attribute, 2020-2029
6.1 Buy Now Pay Later by Open Loop System, 2020-2029
6.2 Buy Now Pay Later by Closed Loop System, 2020-2029

7 Buy Now Pay Later Spend Analysis by Distribution Model, 2020-2029
7.1 Buy Now Pay Later by Standalone, 2020-2029
7.2 Buy Now Pay Later by Banks & Payment Service Providers, 2020-2029
7.3 Buy Now Pay Later by Marketplaces, 2020-2029

8 India Buy Now Pay Later Spend Analysis by Sales Channel
8.1 Buy Now Pay Later Market Share by Sales Channel, 2020-2029
8.2 Buy Now Pay Later Online Channel Market Size and Forecast, 2020-2029
8.3 Buy Now Pay Later POS Channel Market Size and Forecast, 2020-2029

9 India Buy Now Pay Later Snapshot by End-Use Sector, 2020-2029
9.1 Buy Now Pay Later Market Share by End-Use Sector, 2023
9.2 Buy Now Pay Later Sales Uplift by End-Use Segment, 2023

10 India Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029
10.1 India Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis, 2020-2029
10.2 India Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis, 2020-2029
10.3 India Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis, 2020-2029

11 India Buy Now Pay Later Market Size and Forecast by Retail Product Categories
11.1 Buy Now Pay Later Share by Retail Product Category, 2023
11.2 India Buy Now Pay Later Retail Shopping - Apparel, Footwear & Accessories – Gross Merchandise Value Trend Analysis, 2020-2029
11.3 India Buy Now Pay Later Retail Shopping - Consumer Electronics – Gross Merchandise Value Trend Analysis, 2020-2029
11.5 India Buy Now Pay Later Retail Shopping - Toys, Kids, and Babies – Gross Merchandise Value Trend Analysis, 2020-2029
11.6 India Buy Now Pay Later Retail Shopping - Jewellery – Gross Merchandise Value Trend Analysis, 2020-2029
11.7 India Buy Now Pay Later Retail Shopping - Sporting Goods – Gross Merchandise Value Trend Analysis, 2020-2029
11.8 India Buy Now Pay Later Retail Shopping - Entertainment & Gaming – Gross Merchandise Value Trend Analysis, 2020-2029
11.9 India Buy Now Pay Later Retail Shopping - Others – Gross Merchandise Value Trend Analysis, 2020-2029

12 India Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029
12.1 India Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis, 2020-2029
12.2 India Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis, 2020-2029
12.3 India Buy Now Pay Later Home Improvement – Transaction Volume Trend Analysis, 2020-2029

13 India Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029
13.1 India Buy Now Pay Later Travel – Gross Merchandise Value Trend Analysis, 2020-2029
13.2 India Buy Now Pay Later Travel – Average Value Per Transaction Trend Analysis, 2020-2029
13.3 India Buy Now Pay Later Travel – Transaction Volume Trend Analysis, 2020-2029

14 India Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029
14.1 India Buy Now Pay Later Media and Entertainment – Gross Merchandise Value Trend Analysis, 2020-2029
14.2 India Buy Now Pay Later Media and Entertainment – Average Value Per Transaction Trend Analysis, 2020-2029
14.3 India Buy Now Pay Later Media and Entertainment – Transaction Volume Trend Analysis, 2020-2029

15 India Buy Now Pay Later in Service: Market Size and Forecast, 2020-2029
15.1 India Buy Now Pay Later Service – Gross Merchandise Value Trend Analysis, 2020-2029
15.2 India Buy Now Pay Later Service – Average Value Per Transaction Trend Analysis, 2020-2029
15.3 India Buy Now Pay Later Service – Transaction Volume Trend Analysis, 2020-2029

16 India Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029
16.1 India Buy Now Pay Later Automotive – Gross Merchandise Value Trend Analysis, 2020-2029
16.2 India Buy Now Pay Later Automotive – Average Value Per Transaction Trend Analysis, 2020-2029
16.3 India Buy Now Pay Later Automotive – Transaction Volume Trend Analysis, 2020-2029

17 India Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029
17.1 India Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis, 2020-2029
17.2 India Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis, 2020-2029
17.3 India Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis, 2020-2029

18 India Buy Now Pay Later in Others: Market Size and Forecast, 2020-2029
18.1 India Buy Now Pay Later Others – Gross Merchandise Value Trend Analysis, 2020-2029
18.2 India Buy Now Pay Later Others – Average Value Per Transaction Trend Analysis, 2020-2029
18.3 India Buy Now Pay Later Others – Transaction Volume Trend Analysis, 2020-2029

19 India Buy Now Pay Later Analysis by Consumer Attitude and Behaviour, 2020-2029
19.1 Buy Now Pay Later Spend Share by Age Group, 2023
19.1.1 India Buy Now Pay Later by Age Group – Gen Z (15-27) – Gross Merchandise Value Trend Analysis, 2020-2029
19.1.2 India Buy Now Pay Later by Age Group – Millennials (28–44) – Gross Merchandise Value Trend Analysis, 2020-2029
19.1.3 India Buy Now Pay Later by Age Group – Gen X (45 – 60) – Gross Merchandise Value Trend Analysis, 2020-2029
19.1.4 India Buy Now Pay Later by Age Group – Baby Boomers (60+) – Gross Merchandise Value Trend Analysis, 2020-2029
19.2 Buy Now Pay Later Spend Share by Default Rate by Age Group, 2023
19.3 Buy Now Pay Later Share by Income, 2023
19.3.1 India Buy Now Pay Later by Income Level – Tier 1 – Gross Merchandise Value Trend Analysis, 2020-2029
19.3.2 India Buy Now Pay Later by Income Level – Tier 2 – Gross Merchandise Value Trend Analysis, 2020-2029
19.3.3 India Buy Now Pay Later by Income Level – Tier 3 – Gross Merchandise Value Trend Analysis, 2020-2029
19.4 Buy Now Pay Later Gross Merchandise Value Share by Gender, 2023
19.5 Buy Now Pay Later Adoption Rationale, 2023
19.6 India Buy Now Pay Later Market – Spend by Average Monthly Expense Segments, 2023

20 Further Reading
20.1 About PayNXT360
20.2 Related Research

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List of Tables/Graphs

Table 1: India Buy Now Pay Later – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 2: India Buy Now Pay Later – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 3: India Buy Now Pay Later – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 4: India Buy Now Pay Later – Revenues (US$ Million), 2020-2029
Table 5: India Buy Now Pay Later – Merchant Commission (US$ Million), 2020-2029
Table 6: India Buy Now Pay Later – Missed Payment Fee Revenue (US$ Million), 2020-2029
Table 7: India Buy Now Pay Later Pay Now – Other Income (US$ Million), 2020-2029
Table 8: India Buy Now Pay Later – Active Consumer Base (Thousand), 2020-2029
Table 9: India Buy Now Pay Later – Bad Debt (US$ Million), 2022-2024-2029
Table 10: India Buy Now Pay Later – Two-Party Business Model (US$ Million), 2020-2029
Table 11: India Buy Now Pay Later – Three-Party Business Model (US$ Million), 2020-2029
Table 12: India Buy Now Pay Later – Convenience (US$ Million), 2020-2029
Table 13: India Buy Now Pay Later – Credit (US$ Million), 2020-2029
Table 14: India Buy Now Pay Later – Open Loop System (US$ Million), 2020-2029
Table 15: India Buy Now Pay Later – Closed Loop System (US$ Million), 2020-2029
Table 16: India Buy Now Pay Later – Standalone (US$ Million), 2020-2029
Table 17: India Buy Now Pay Later – Banks & Payment Service Providers (US$ Million), 2020-2029
Table 18: India Buy Now Pay Later – Marketplaces (US$ Million), 2020-2029
Table 19: India Buy Now Pay Later – Gross Merchandise Value by Online Channel (US$ Million), 2020-2029
Table 20: India Buy Now Pay Later – Gross Merchandise Value by POS Channel (US$ Million), 2020-2029
Table 21: India Buy Now Pay Later Retail Shopping – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 22: India Buy Now Pay Later Retail Shopping – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 23: India Buy Now Pay Later Retail Shopping – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 24: India Buy Now Pay Later Retail Shopping - Apparel, Footwear & Accessories – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 25: India Buy Now Pay Later Retail Shopping - Consumer Electronics – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 26: India Buy Now Pay Later Retail Shopping - Toys, Kids, and Babies – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 27: India Buy Now Pay Later Retail Shopping - Jewellery – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 28: India Buy Now Pay Later Retail Shopping - Sporting Goods – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 29: India Buy Now Pay Later Retail Shopping - Entertainment & Gaming – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 30: India Buy Now Pay Later Retail Shopping - Others – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 31: India Buy Now Pay Later Home Improvement – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 32: India Buy Now Pay Later Home Improvement – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 33: India Buy Now Pay Later Retail Shopping Home Improvement – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 34: India Buy Now Pay Later Travel – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 35: India Buy Now Pay Later Travel – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 36: India Buy Now Pay Later Travel – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 37: India Buy Now Pay Later Media and Entertainment – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 38: India Buy Now Pay Later Media and Entertainment – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 39: India Buy Now Pay Later Media and Entertainment – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 40: India Buy Now Pay Later Service – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 41: India Buy Now Pay Later Service– Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 42: India Buy Now Pay Later Service – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 43: India Buy Now Pay Later Automotive – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 44: India Buy Now Pay Later Automotive – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 45: India Buy Now Pay Later Automotive – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 46: India Buy Now Pay Later Healthcare and Wellness – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 47: India Buy Now Pay Later Healthcare and Wellness – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 48: India Buy Now Pay Later Healthcare and Wellness – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 49: India Buy Now Pay Later Others – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 50: India Buy Now Pay Later Others – Average Value Per Transaction Trend Analysis (US$), 2020-2029
Table 51: India Buy Now Pay Later Others – Transaction Volume Trend Analysis (Thousand), 2020-2029
Table 52: India Buy Now Pay Later by Age Group – Gen Z (15-27) – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 53: India Buy Now Pay Later by Age Group – Millennials (28–44) – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 54: India Buy Now Pay Later by Age Group – Gen X (45 – 60) – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 55: India Buy Now Pay Later by Age Group – Baby Boomers (60+) – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 56: India Buy Now Pay Later by Income Level – Tier 1 – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 57: India Buy Now Pay Later by Income Level – Tier 2 – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029
Table 58: India Buy Now Pay Later by Income Level – Tier 3 – Gross Merchandise Value Trend Analysis (US$ Million), 2020-2029