Fri. Mar 29th, 2024
Women In Tier I, II Cities Use BNPL Option For Buying Electronics & Ed-tech Courses, While Men Focus On Lifestyle & Fashion: Report

People across different age groups preferred using the –Buy Now, Pay Later (BNPL) options for buying things online in 2021, with the youngest customer being 18-year old and the oldest 66, shows the survey by ZestMoney, a BNPL platform.

The report reflected upon the top consumer preferences, the categories driving demand, and the consumer behaviour dynamics. ‘The India Buy Now, Pay Later Report 2021’ not only reveals consumer preferences but also provides an insight into the Indian BNPL ecosystem, worldwide best practices, and the industry’s future in India.

BNPL
Source: ZestMoney

BNPL was quite famous amongst people, especially with the age group of 23-26 years, in 2021. The customer base for millennial and GenZ customers multiplied 2X and 3X each, reflecting the BNPL segment got a push majority by the young Indian brigade that goes hand-in-hand with the global trend.

In the last year, the platform saw a 143% of increase in women customers, while male customers rose by 137%. A 50% increase was witnessed in the last two months of 2021 amongst customers using BNPL for travelling purposes.

Also Read:  The Buy Now Pay Later (BNPL) Phenomenon: What Is It?

The blanket BNPL transactions on ZestMoney leapt 300% in 2021 as against 2020.

The findings show that men from Tier 1 and 2 cities spent heavily on fashion and lifestyle, while women from Tier 1 and 2 cities spent on electronics and edtech courses, respectively.

Zest money report
Source: ZestMoney

Bengaluru, Mumbai, New Delhi, Pune, Hyderabad, Chennai, Ahmedabad, Thane, Kolkata, and Jaipur were the top cities that heavily availed BNPL option in 2021, while Lucknow, Kanchipuram, Vijayawada, Visakhapatnam, Guntur, Surat, Indore, Bhopal, Tiruvallur, and Coimbatore emerged as the top tier-II and tier-III cities on the platform.

Lizzie Chapman, CEO & Co-founder of ZestMoney said: “2021 was an intense year, with the volatility of the pandemic coupled with its impact on the consumer we serve – from pain to recovery and then rapid demand acceleration over the last two quarters. Customers continued to lap up Pay Later because it gives them the perfect flexibility to spread out costs and plan their finances better. We’ve doubled our user base in the last 12 months taking our total registered user base to 15 MN – almost 2X growth. It’s been a well-rounded growth across categories from smartphones, electronics, fashion, and home decor emerging as the top categories on the platform.”

ZestMoney said that it had not only added the highest number of new customers and merchants but also obtained a significant market share.

“We saw a 300% YoY growth in BNPL transactions as people took to convenience and affordability in a big way. Owing to the solid consumer demand we saw last year; we now have a 50% market share in the Indian BNPL market and over 70% market share in the online ‘Pay in 3’ no-cost interest-free offering. On the back of the strong demand and our expansion plans, we are confident of hitting a $10 BN GMV run rate in the next 3 years and cementing our position as the market leader in the country,” added Lizzie Chapman.

During the times of festivity, the usage of BNPL options increased ten times for purchasing products such as smartphones, electronics, large appliances, fashion, furniture, and home decor.

ZestMoney noted a 200% growth in transactions on E-commerce platforms like Amazon, Flipkart, and Myntra, as against last year. The transactions on physical stores witnessed 100% growth during the festive season compared to the previous year, the report noted.
The report signifies the growing demand for BNPL options, as instead of deferring the demand due to financial constraints, customers believe in availing this option.

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.

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