India’s BNPL Use Expected to Climb to $50B by 2026, Report Says

The buy now, pay later (BNPL) industry in India is doing well, with forecasts saying it will surge more than tenfold in the next four years, Reuters reported.

That comes as tens of millions of online shoppers are lured in by the interest-free installment payments and fewer hurdles, according to the report.

The BNPL market will hit around $45 billion to $50 billion by 2026, the reported stated, citing research firm Redseer. Right now, it’s currently sitting at $3 billion to $3.5 billion. The amount of BNPL users in the country might hit around 80 million to 100 million customers, an increase from 10 million to 15 million now.

But it isn’t all a rosy outlook as the maximum credit currently being offered on BNPL is 100,000 rupees, or about $1,350, which is lower than what is offered by credit cards, according to the report. Analysts say it will likely still be a while before the industry for cards is disrupted.

One of the bigger players in BNPL in the country is MobiKwik, which is backed by the Abu Dhabi Investment Authority, the report stated. MobiKwik has seen BNPL business almost double in the last two years, with part of the reason being the lack of formal credit access for many people there.

The company said income from the segment has accounted for almost one-fifth of the 3.02 billion rupees (about $41 million) in revenue for the financial year ending March 31.

“Only 60 million to 70 million Indians have access to credit today, which means 93% of India has no access to credit,” said MobiKwik Co-Founder Upasana Taku, per Reuters.

BNPL is becoming popular in many parts of the world. In Africa, for example, B2B eCommerce firm Omnibiz Africa has rolled out a BNPL option.

Read more: OmniBiz Africa Unveils BNPL, Bookkeeping Services

“With the introduction of MyStore App, retailers can now replace the traditional paper-based bookkeeping with the automated bookkeeping app,” Omnibiz Africa CEO Deepankar Rustagi said at the launch.