1. PIYOOSH BAJORIA

2. 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

3. How BNPL Works
PIYOOSH BAJORIA

4. TYPES OF BNPL
PIYOOSH BAJORIA

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. INVESTMENTS IN BNPL
PIYOOSH BAJORIA

12. 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

13. BNPL Sector Wise
Travel
PIYOOSH BAJORIA

14. BNPL Audience Segmentation
35%
25%
23%
19%
13% 4%
PIYOOSH BAJORIA

15. BNPL Players
PIYOOSH BAJORIA

16. Figures in INR
PIYOOSH BAJORIA

17. PIYOOSH BAJORIA

18. 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

19. PIYOOSH BAJORIA

20. Thank You
PIYOOSH BAJORIA