3 reasons BNPL will be on the rise during the festive season
By Leandra Monteiro
In India, the buy now, pay later (BNPL) flexible payment method that initially started with e-commerce marketplaces has gradually moved into other industry verticals. Food delivery, the travel industry, and online grocery buying are some of the sectors wherein BNPL providers are experiencing a lot of growth.
Bhavin Patel, Co-Founder & CEO, LenDenClub said, “This festive season every shopaholic’s go-to solution is Buy Now Pay Later. However, some of them can’t avail credit cards & are looking for interest-free credit on e-commerce sites. Young millennials and Genz’s are attracted to the BNPL service due to the ease of making part-payments for products they bought online or at stores, without additional costs or fees.
We at LenDenClub, offer customized financing solutions to our partners and their customers. The growth rate in comparison to 2020 is exactly two-fold, and we expect it to be three-fold this festive period.”
Here are the main factors Bhavin shared that would contribute towards the growth rate of BNPL:
Easy access to financing: Fintech is bringing more individuals under the financial inclusion umbrella, and BNPL is paving the way. BNPL as a model is making low-cost credit available to a large section of new-to-credit and non-credit card customers. With 0% interest charges, BNPL is becoming a go-to-solution this festive season.
Smaller EMIs with no additional cost: BNPL acts as a support group for customers by allowing them to break down their payments into smaller EMIs at no extra cost. As a consequence of this, customers’ purchasing habits have evolved from large-ticket loans to small-ticket purchases.
Assisting individuals with no credit history: Unlike standard credit card and unsecured loan firms, BNPL lenders explore alternative data sources to underwrite new-to-credit consumers. This encompasses a wide range of salaried and self-employed people with access to point-of-sale credit and allows them to be incorporated into the country’s financial ecosystem.
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