At the rate of its usage, buy now pay later India could become a movement, considering its widespread popularity in the country. The proliferation of buy now pay later apps like LazyPay and their ability to cater to a major chunk of millennials and Gen-Z customers has clearly put the BNPL concept in the spotlight. Shoppers in this category are strongly bringing about a BNPL revolution, particularly in the e-commerce segment. Usage of the BNPL facility, as per reports, increased by a whopping 232% for 2021, if the Gen Z user base is taken into account. E-commerce could well contribute a whopping 12% of global spending by consumers by the year 2025 as per reports, with 59% of transactions taking place via mobile devices as per FIS. 

However, the key trend worth noting is that preferences for payments are steadily growing in the BNPL category, owing to its quick and convenient access to credit in India. Why is buy now pay later India so popular? How is it helping younger consumers in the country? Here are some major reasons for the same. 

1. Sheer Convenience – BNPL has become hugely popular, mostly due to the sheer convenience involved in the whole process. Millennial and Gen Z buyers always prefer faster payment methods with processing times of only a few seconds and easy repayment options for later. Most people in this segment usually go through 4-5 portals before selecting their final destinations for shopping as per experts. Hence, they prefer the quicker payment process via BNPL and the ability to make purchases without paying for them right away. 
2. Absence of Alternative Funds – Most financial institutions do not offer funds to those without credit scores or income as well. Many users in this segment are borrowing for the first time and will traditionally have to get their parents as guarantors in order to get either credit cards or loans. Buy now pay later solutions to make use of alternative information and AI for analyzing user profiles and sanction credit likewise, enabling higher credit access for first-timers without credit histories or steady incomes. Reports indicate that the number of credit cards in the country is only 10% of the total count of users who pay digitally. Hence, access to credit is an issue that BNPL is solving and younger users prefer products where they can repay the amount without interest within stipulated deadlines in most cases. 
3. Seamless Refund Options – Once a consumer buys anything online and then cancels, he/she will get a refund quickly but it is not something that happens instantly. When there is a purchase done through BNPL and later the order is canceled, then refunds happen instantly as well. The transaction is canceled and the loan obligation will no longer be there as well. This is another major benefit that younger consumers are experiencing with the BNPL system. 
4. Convenient EMI Options – Several millennials and Gen Z users use this facility for making smaller transactions, dividing the amount into convenient and easily manageable EMIs that may be repaid over a few months without paying interest. This is helping these users purchase products that were out of their grasp previously. 

It is thus clear why BNPL is gaining increasing popularity amongst Gen Z and millennial consumers in India. It is also helping them immensely in various ways. There should be an even bigger shift toward these payment mechanisms in the future as per expert predictions.

• By Anil Sumra
• Buy Now Pay Later