BNPL’s cracker of a Diwali

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Hello readers,

Tick-tock, tick-tock, time was running out. Every second I waited for my transaction to go through was a second I could use elsewhere: My guests were on the way, and there was still a lot to be done before they arrived. So I did it – I tried out buy now, pay later (BNPL) for the first time ever, for an urgent delivery.

It took seconds to activate the option. It took me more time when I opted for BNPL again, all because I was debating the pros and cons of the service. I fall in the category of people who believe that even credit cards, which have been around for much longer than BNPL services, should be sparingly used.
Turns out, BNPL was quite a hit in my home country during the recent Diwali sales hosted by Amazon and Walmart-backed Flipkart.

Today we look at,

• How Diwali underlined the growing popularity of BNPL in India
• Grab’s digibank ambitions
• Other newsy highlights such as a speedbreaker for crypto in Indonesia, and India’s newest unicorn

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BNPL lights up India’s Diwali sales

Image credit: Timmy Loen

In the beginning of 2021, we talked about how the time was ripe for buy now, pay later in Asia. That prediction continues to hold true, as made clear by the most recent festive sales events in India.

• Numbers back this: Walmart-backed Flipkart saw over 1 million customers opting for its pay-later facility to make purchases during the company’s flagship shopping event, The Big Billion Days 2021. In comparison, Amazon’s month-long Great Indian Festival Sale 2021 brought in over 500,000 new customers to the ecommerce major’s pay-later program.

• Size matters, not: From electronics that can burn a hole in your pocket to lighter-on-the-wallet purchases such as apparel, BNPL continues to gain traction because it allows one to shop till you drop – without the worry of emptying out your account altogether.

• Instant cash no longer king: Amazon saw about a 10x surge in BNPL services from Tier 2 and Tier 3 cities. According to one projection, BNPL is going to make up 15% to 20% of how much young Indians spend in the next five years.

Read more: BNPL lights up India’s ecommerce sales this Diwali

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