Players shaping landscape with innovative solutions
India’s “Buy Now Pay Later” (BNPL) market is expected to grow by 13.4% on annual basis, reaching US$21.95 billion in 2025, following on to the robust growth of CAGR 22.3% achieved during 2021-2024, according to an industry report.
“This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 9.8% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of US$19.36 billion to approximately US$35.07 billion,” said the ResearchAndMarkets’ report on the industry which is on offer since 30 Oct.
India’s BNPL market is evolving rapidly, driven by the growth of e-commerce, the entry of diverse providers, and increasing consumer demand for flexible payment options. Players such as LazyPay, Amazon Pay Later, and ZestMoney are shaping the landscape with innovative solutions tailored to Indian consumers.
Over the next 2-4 years, the sector is expected to see significant growth and diversification, with BNPL becoming a staple payment method in both traditional and non-traditional sectors, according to the report.
Regulatory developments will play a key role in ensuring the market’s sustainability and balancing innovation with consumer protection to create a robust and transparent BNPL ecosystem in India.
The surge in consumer demand for flexible payment options has been a pivotal factor driving BNPL adoption. Additionally, the rapid growth of digital commerce in India has created an ecosystem conducive to BNPL services. E-commerce platforms and increasing smartphone penetration have enabled BNPL providers to reach a broader audience, particularly among younger consumers.
The reported pointed out that India’s BNPL market is set to grow further as digital commerce and consumer awareness expand. With providers innovating and tailoring their offerings to meet diverse needs, BNPL will likely become a mainstream payment method across urban and rural areas. This evolution will position BNPL as a critical enabler in India’s digital payment landscape over the coming decade.
Players in the industry are: ZestMoney, Klarna, Simpl, LazyPay, ePayLater, Cred, Pine Labs, MobiKwik, HDFC Bank’s SmartBuy and Axis Bank’s Flexi Pay. Fiinews.com
