Consumer demand has been up by more than 200 per cent in the second phase of lockdown (March-May 21), as compared to the lockdown last year (March to May 2020), according to a survey report by ZestMoney, the Buy Now, Pay Later platform.
Customer applications for the BNPL credit limit on the platform itself went up by 5 instances in the March-May 2021 period as more people today took to organizing their finances superior. The BNPL platforms claim sturdy customer behaviour about repayments, bounce prices signalled green shoots of recovery and a revival in customer demand.
E-commerce transactions had been up by 200 per cent through this period, and the categories driving development integrated on the internet electronics, smartphones, Edtech, style, home decor amongst other people. Bangalore, New Delhi and Mumbai had been the prime 3 metros witnessing the highest BNPL transactions, though Jaipur, Lucknow and Vishakhapatnam emerged as the prime 3 non-metro markets. Top categories that respondents had been most likely to commit on in the coming months: Smartphones, electronics, style, home décor, water purifiers and air tickets. The survey also revealed that 62 per cent of people today planned to splurge on major-ticket products in the coming months though opting for BNPL services.
Despite the financial challenges arising due to the pandemic, the BNPL platforms claim that they have witnessed repayment efficiency enhanced drastically with numerous consumers paying nicely inside their repayment period. The firm has also witnessed an improvement of 40 per cent in bounce prices, though NPAs had been 34 per cent significantly less serious in Phase II, compared to Phase I of the lockdown.
Lizzie Chapman, CEO and Co-Founder ZestMoney says, “Buy Now Pay Later continues to gain traction as people look for financing options that allow them to manage their expenses better. Strong repayment behaviour indicates things are improving at a micro-level with little impact on jobs and income. Interestingly, Tier II and III markets witnessed stronger revival across parameters. It’s a well-rounded growth across categories from electronics to electric bikes.”
Some of the findings of the survey
- 75 per cent of respondents stated that they had been in a position to handle their finances superior this year, compared to Phase I
- 66 per cent had been more optimistic about their job prospects and enterprise this year, compared to last year
- 57 per cent stated that their finances had been not impacted through Phase II of the lockdown
- 62 per cent respondents indicated that they strategy to splurge on major-ticket products, indicating sturdy demand and a positive customer sentiment
- Over 53 per cent of respondents had opted for BNPL in between April to June 2021