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PIYOOSH BAJORIA
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What is BNPL? BNPL is a financial tool (loan) designed to benefit both consumer & merchants. Any consumer can sign up at any time on BNPL platform to avail credit irrespective of any credit history. BNPL enhances the buying power of the consumers Merchants can offer a seamless checkout experience to their buyers which results in better sales conversions. PIYOOSH BAJORIA
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How BNPL Works PIYOOSH BAJORIA
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TYPES OF BNPL PIYOOSH BAJORIA
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INTEGRATED SHOPPING APPS
Tenure : 4 installments without any interest Avg Ticket Size : $500 - $1500 Leading Players : Afterpay, Klarna, Sezzle Age Group : All Geographic Presence : South-East Asian countries Scope : Recorded 300 – 400% growth in 2020 alone PIYOOSH BAJORIA
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CARD LINKED INSTALLMENTS
Tenure : No Cost EMI ( 3months – 1 Yr) Avg Ticket Size : Purchases above $1000 Leading Players : Splitit Age Group : All Geographic Presence : Asia & Latin America Scope : Growing at a CAGR of 200 to 300% PIYOOSH BAJORIA
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OFF CARD FINANCING Category : Electronics, furniture, sports equipment
Avg Ticket Size : Mid & High ( $1000- $50000) Leading Players : Affirm & Uplift Audience : Generally, users have high credit scores Geographic Presence : North America Scope : With a growth rate of 80 – 100% PIYOOSH BAJORIA
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VIRTUAL RENT TO OWN Tenure : 6 months – 3 yrs
Audience : Consumer who wish to own the product. Category : Home Appliances, Electronics, Furniture Leading Players : Acima, Acceptance Now, Progressive Leasing Audience : Consumers with poor credit scores Geographic Presence : USA Scope : Growing at 35% CAGR PIYOOSH BAJORIA
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VERTICAL FOCUSSED LARGER TICKET PLAYS
Category : Healthcare, Vetirinary, Power Sports, home improvement. Avg Ticket Size : High Purchases ( $ $50000) Leading Players : CareCredit (Healthcare) & Greensky Age Group : 25 yrs – 50 yrs Geographic Presence : USA Scope : 10 – 15 % CAGR PIYOOSH BAJORIA
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SME SALES FINANCING Tenure : Interest free for certain period post that interest is charged. Audience : Small Business running low on capital Leading Players : CIT & Dell Fin. Services, Solv & Zip (Online) Geographic Presence : USA Benefits : Lowering costs, increasing loan disbursal volumes, easing credit evaluation without significant risk implications PIYOOSH BAJORIA
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INVESTMENTS IN BNPL PIYOOSH BAJORIA
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Benefits For Customers : Instant Access to Credit Ease of Use
Safety & Security Help building positive credit profile Enhances Buying Power For Merchants : Increased Sales Value New Customers Loyalty Opening a new stream of income via loan interest Providing a holistic and pleasant branded customer purchase experience Benefits PIYOOSH BAJORIA
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BNPL Sector Wise Travel PIYOOSH BAJORIA
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BNPL Audience Segmentation
35% 25% 23% 19% 13% 4% PIYOOSH BAJORIA
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BNPL Players PIYOOSH BAJORIA
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Figures in INR PIYOOSH BAJORIA
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PIYOOSH BAJORIA
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Credit Card Vs BNPL Parameters Credit Card BNPL Transparency
Hidden Charges & exorbitant Interest Rates Follows a low cost & transparent pricing Model Instant & Digital process Customer requires to go through lot of paperwork & approvals Anyone can sign up & apply digitally More Accessible For High CIBIL customers (only 30 Mn) BNPL by nature is designed for a much bigger market, including new to credit customers or people with insufficient credit history Interest Rates Interest rates on missed payments can go up to 48 per cent. BNPL companies charge around 0 to 24 per cent interest rate depending on the merchant, tenure and the borrower Checkout CC needs to be saved which is also considered to be risky Easy Registration, the convenience of use & seamless Checkout. PIYOOSH BAJORIA
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PIYOOSH BAJORIA
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Thank You PIYOOSH BAJORIA
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