BNPL is on the rise in Punjab, driven by Generation Z and Millennials: ZestMoney Report 2021

Chandigarh, February 4, 2022: ZestMoney, India's largest and fastest-growing Buy Now, Pay Later platform, has released its annual Buy Now, Pay Later report, which decodes the top consumer preferences, categories driving demand, adoption of BNPL by merchants and highlights triggers for  shift in consumer behavior.
Besides revealing consumer preferences and how Indian states took to BNPL in a big way, ‘The India Buy Now, Pay Later Report 2021’ also gives an overview of the Indian BNPL ecosystem, global best practices, and the way forward for the industry in India. 
The report offers interesting insights into customer behavior and highlights the diverse trends of 2021 from across the country. While most of the customers (median) were in the 23-26 years group, BNPL emerged as the preferred option for people across age groups with the youngest customer being 18 years old and the oldest at 66. The number of millennial and GenZ customer base increased by 2X and 3X respectively, indicating that the BNPL segment has been driven by young cohorts in India in line with the global trend. 
Overall BNPL transactions on ZestMoney increased about 300% in 2021 compared to 2020. Punjab had a 5x increase in BNPL transactions on ZestMoney in 2021 compared to 2020.Fashion and lifestyle, a strong area for BNPL globally, has also made the list of top categories in India. The number of transactions on the platform increased by 2.3X, with a 55 percent increase in the last quarter of CY2021 alone. In 2021, the top cities that used BNPL for lifestyle and fashion were Bangalore, Hyderabad, Mumbai, Pune, and Mohali.
As part of the report, insights are also revealed on what women and men shop for across the country.Women in Chandigarh spend heavily on electronics, while men spend heavily on fashion and lifestyle.
Bangalore, Mumbai, New Delhi, Pune, Hyderabad, Chennai, Ahmedabad, Thane, Kolkata, and Jaipur emerged as the top cities witnessing demand for BNPL in 2021. 
Commenting on the report, Lizzie Chapman, CEO & Co-founder of ZestMoney said, ‘2021 was an intense year, with the volatility of the pandemic coupled with its impact on the consumer we serve - from pain to recovery and then rapid demand acceleration over the last two quarters. Customers continued to lap up Pay Later because it gives them the perfect flexibility to spread out costs and plan their finances better. We've doubled our user base in the last 12 months taking our total registered user base to 15 MN – almost 2X growth. It's been a well-rounded growth across categories from smartphones, electronics, fashion, and home decor emerging as the top categories on the platform.”
“We not only added the highest number of new customers and merchants but also gained market share in an ever-growing market.   We saw a 300% YoY growth in BNPL transactions as people took to convenience and affordability in a big way. Owing to the solid consumer demand we saw last year, we now have a 50% market share in the Indian BNPL market and over 70% market share in the online ‘Pay in 3’ no-cost interest-free offering. On the back of the strong demand and our expansion plans, we are confident of hitting a $10 BN GMV run rate in the next 3 years and cementing our position as the market leader in the country.” added Lizzie Chapman. 
Direct to consumer (DTC) brands took to enabling BNPL at checkout as they saw an increase in sales and average order value. ZestMoney saw a 10X YoY growth in the number D2C merchants on its platform indicating the popularity of the BNPL option among them. While DTC brands in Fashion, Beauty, and Skincare topped the demand for BNPL, Electronics, Home & Decor, and Travel were the other major categories.
During the festive season, customer applications for BNPL went up by 10X with top categories being Smartphones, electronics, large appliances, fashion, furniture, and home decor. ZestMoney witnessed a 200% growth in transactions on Amazon, Flipkart, and Myntra compared to last year. While physical stores observed growth of 100% during the festive season compared to 2020. 
In Chandigarh, customers transacted more on Edtech, whereas in Mohali, customers transacted more on smartphones and electronic devices, resulting in an increase in Pay Later transactions in physical stores. Moreover, Fitness transactions on the platform increased by 2.3X as Chandigarh preferred BNPL for its greater flexibility in payment.
The report also highlights the importance of collaboration between banks and fintechs to scale the adoption of BNPL and drive financial inclusion in the country. ZestMoney said it partners with 25 leading banks and NBFCs to service demand from customers. 
ZestMoney is the largest omnichannel Buy Now, Pay Later platform with 15 Mn registered users across the country. It has the largest network of merchants with 10,000+ online partners including the biggest e-commerce platforms like Amazon, Flipkart, Myntra, MakeMyTrip, Nykaa among others. It is also present at 75,000+ store partners including brands like Reliance Digital, Sangeetha Mobiles, Pai International, Pai Mobiles, and Poorvika Mobiles across the country.