When Benjamin Franklin said, “Don’t put off until tomorrow what you can do today”, he obviously didn’t hear about ‘Buy Now, Pay Later.’ BNPL is well on its way to becoming a way of life for the young consumer, who is wary of credit cards, or lacks the credit worthiness to qualify for one, and prefers the visibility and flexibility provided by BNPL offerings.
According to Credgenics, a digital debt collection platform, India's BNPL industry is expected to grow over ten-fold within four years as tens of millions of online shoppers take interest-free credit with fewer hassles.
The last couple of years have seen a growing number of Fintech companies offering lines of credit to young spenders seeking short term, smaller ticket loans to purchase small ticket items, which they hope to repay fast. Unfortunately, this process isn’t as simple as it sounds. Because, unlike credit cards which offer a single point of contact (the card issuing bank), BNPL schemes involve an NBFC providing a loan, while the Fintech company provides the interface – that’s two different players for one short term consumer loan.
“The higher adoption of digital transactions by end customers during the pandemic provides a unique opportunity for lenders to leverage tech advancements in this space. Credgenics enables completely digitised loan collections process including communications along with a digital payment platform to deliver a seamless experience for end customers,” says Rishabh Goel, CEO and Co-Founder, Credgenics.