“Short-term financing has grown increasingly popular in recent years. As the Indian consumer increasingly adopts these credit-driven options, saving-based purchase options are also starting to emerge,” stated Redseer’s report on fintech.
A BNPL (Buy Now Pay Later) plan gives credit for instant purchase of your favourite products. It is offered even for those without good credit scores or credit card eligibility. Couple of clicks on the phone is all that it takes to get credit under BNPL.
In the past decade, this option for instant gratification has gained popularity, especially among young and low-income consumers.
The market has recently been flooded with lending options, and customers have become accustomed to the buy now and pay later concept. However, India has always been a savings-first country and hesitant to take credit. The new concept of Save Now and Pay Later looks to leverage.
India’s traditional, financially conservative DNA. SNPL platforms enable customers to make planned, goal-based savings over time. Once the target amount is reached, they can get the desired product. This is part of the trend of returning to sustainable and mindful spending.
Save Now, Pay Later, or SNPL model, which has brought saving and spending on the same platform, is still a nascent theme globally. Since there has been little innovation in savings accounts as a financial product in decades, start-ups are now using the power of the India stack to give customers a more rewarding savings experience. To date, Indian firms have raised more than $15M collectively.
As per Redseer data,30% of customers are willing to try SNPL. Despite the BNPL wave, with proper awareness of SNPL, customers are looking forward to opting for a strategy to invest their savings for planned expenses. This scheme, combined with the discounts offered by the brands, ensures that users are not caught in a debt cycle and can spend on things they require rather than impulse buys that could result in buyer’s remorse.