Buy Now Pay Later
Financing at the point of sale may be a small share of unsecured lending in India today, but it’s growing fast. Banks seeking long-term growth should explore market entry, and merchants should reassess their financing offers.
Point-of-sale (POS) financing services in India have grown significantly over the past 24 months, especially since the onset of COVID-19. Trends fueling growth include digitization, rising merchant adoption, increasing repeat usage among younger consumers, and an expanding set of players targeting lending at point of sale, a service also known as “buy now, pay later.”
POS financing’s expanding role in unsecured lending
Credit originated at point of sale is projected to continue its growth from 4 to 6 percent of India. This is the only unsecured-lending asset class that might experience double-digit growth post COVID-19 crisis. The growth is underpinned by increased consumer and merchant awareness and adoption of point-of-sale financing solutions.
Banks/Fintech needs to come out of traditional BNPL methods, additionally they can focus on smaller though regular intervals transactions like Monthly Grocery bills, Monthly office/ residential rentals, electricity bills, society bills etc. which will help banks/fintech to connect customers more occasionally through SMS/Emails/Wts app etc.
High Investment and Technology is required to get high average returns on these kinds of assets.
Fundupay has a API which supports Banks/NBFCs/Fintech for setting up the BNPL business for their growth in this platform.
The Buy Now Pay Later solution is a new alternative to traditional credit-based instruments for inventory procurement with no upfront payments. Our tailor-made solution helps brands & enterprises get instant payment against products sold, while your buyers get immediate financing to purchase products on credit with a flexible repayment window.
Fundupay can set up all BNPL related work flow for smooth functioning of portfolio, following work flow is offered.
- Credit Assessment Module for quick decision making.
- Setting up transaction wise BNPL limit and disbursement
- Monthly statement issuance
- Monthly online payment reminders ( SMS, Email, Wts app, Call center calling etc )
- Collection of dues / overdue etc…
