Embedded lending offers convenient, streamlined access to financing for specific expenses from within merchant, business and other platforms. This proves impactful for individuals and microbusinesses and small businesses (MSBs) that want to align their cash flow and expenses.
In India, 15% of consumers and 37% of MSBs have recently used this type of lending. PYMNTS Intelligence’s data shows much greater adoption among those with unstable cash flows. That tells only part of the story. More than two-thirds of each segment say they are highly likely to switch to providers that offer embedded lending. This suggests the future for this lending in India is bright.
However, users widely experience friction that detracts from their experience. More than 9 in 10 experience of consumers and MSBs report at least one pain point. Among the most important problem areas is the application process, with 31% of consumers and 65% of MSBs that recently used embedded lending reporting issues. This is an area providers must address.
These are some of the findings detailed in “The Embedded Lending Opportunity: India Edition,” a PYMNTS Intelligence report commissioned by Visa. This report explores the state of play for embedded lending in India for the consumer and MSB market segments. The report draws on a 360-degree study of lenders and end users, conducted between Jan. 13 and March 15.
This report includes crucial information for lenders looking to become market leaders in embedded lending. Download the report to learn more about what’s next for this type of lending in India.