Page 47 - Edelweiss India Conference 2022 FLIPBOOK

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to-use digital interface. The solution powers multiple bank accounts into a single
mobile application (of any participating bank), merging several banking features,
seamless fund routing and merchant payments under one hood. It has single click-
2-factor authentication, which is aligned with regulatory guidelines and yet enables a
seamless single click payment.

Money transfer between consumers and merchants using wallets or UPI is becoming
increasingly common in India, and has led to a surge in mobile payments over the last few
years. For perspective, mobile payments shot up approximately 16 times from 1.6bn in
FY17 to 26bn in FY21. Money transfer
between consumers
and merchants using
wallets or UPI is
becoming increasingly
As late as March 2021, India had only 30–35mn unique credit card users—that’s a measly
credit card penetration of 3.5% (of the total Indian population above the age of 15 years) common in India, and
vis-à-vis the world’s major economies. This implies a huge consumer credit gap, but also has led to a surge in
great scope for growth of credit card as well as other credit instruments. mobile payments over
the last few years
In general, a large part of the Indian population continues to be unserved or underserved
by the formal credit market. Millions of people in India have, hence, either low or no access
to credit, or only have access to credit at very high interest rates.

Inequality of credit distribution in India is evidenced by household credit utilisation as a
percentage of GDP at 11% vis-à-vis 75%-plus for developed economies such as the US and
the UK.

India's BNPL market has rapidly grown to reach USD 3-3.5 bn in disbursals in Fiscal
2021 and is on track to USD 45-50 bn by Fiscal 2026 driven by user growth

BNPL market (deferred payments+shopping EMI) User Base in India
Loan Disbursals GMV in USD bn Mn Unique users for each mode

45-50 Credit BNPL
Card Users Users

80-100
CAGR 70-75
68% BNPL user base
to surpass cards
user base

CAGR 30-35
>80%
3-3.5 10-15
<0.5
FY18 FY21 FY22P FY23P FY24P FY25P FY26P FY21 FY26
Source: RedSear Estimates

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