More Indians are likely to purchase using Buy Now Pay Later (BNPL) services in the coming 12 months than consumers in other markets across the world, according to a new report by YouGov.
At the moment, however, data from the last three months show that more Indonesians and Mexicans (27 and 24 percent, respectively) are using BNPL services than Indians (22 percent).
Looking ahead, many more urban Indians (28 per cent) say they intend to make purchases using BNPL plans in the next 12 months. Across the globe, the intent to use these services is the highest in India, much above the global average of 17 per cent, highlighting the growing popularity of BNPL services among Indian consumers, "the report titled The Future of Financial Services Report" says.
Consequently, more players are also expected to enter the BNPL fintech market in the future as more Indians are likely to explore online shopping.
As the COVID-19 pandemic turned people towards online shopping, the rise of digital payments and demand for easy tax-free loans has driven more players to enter the BNPL market, the report says.
BNPL is frequently viewed as a preferred method for consumers to purchase items that they cannot afford to pay for right away.
The report was prepared using deep-dive custom research and data from YouGov’s profiles to explore the current global financial landscape, as well as identify the global adoption of, and trust in, new and emerging financial services across 18 international markets.
The report offered some interesting insights. More men (33 per cent) than women (22 per cent) planned on using BNPL services. Youngsters in the 18–24 age groups weren’t likely to explore BNPL plans. Those in the 35–54 age group and working full time were most likely to use BNPL services.
The typical Indian BNPL user, according to the report, would be someone in the 30-39 age group, residing in a Tier-1 city, working full-time, and usually from a high income group.