Page 48 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

One of the key factors that would drive the need for credit over coming years is the shift in

Consumer lending by banks and NBFCs across use cases was estimated to be about
USD267bn in FY17, and it had grown to USD437bn by FY20.

This trend of rising consumption behaviour, particularly among millennials and Gen-Z,
augurs well for credit growth. Tech-based credit solutions will be better placed to target
this credit need compared with traditional credit institutions,-especially considering
smartphone and mobile payment user base was approximately 15 times and 8 times the

One of the key factors In the context of a population starved of formal credit, BNPL has emerged as a major
that would drive the disruptor. Globally as well as in India, BNPL players have made strong inroads in e-commerce,
need for credit over
coming years is the both convenience (for instance, in case of lower ticket size food delivery purchases) and for
shift in consumer
mindset from being consumer durables).
savings-focused to
consumption and Looking at the overall consumer internet opportunity, BNPL would have an estimated

growing aspirations and need for convenience.

become a large share of the consumer internet market
USD300+bn

~3.5X
USD90bn

Including some
merchants as well USD~70-80bn
USD10-15bn ~6X

USD45-50bn

15.0X
USD 3-3.5bn

FY21 BNPL FY26E FY21 Credit Based FY26E FY21 Consumer FY26E
Online Payments Internet Market

payments, shopping EMI and revolving credit platforms, BNPL, disbursals from legacy lenders are excluded.
Source(s): Desk Research: RBI data: RedSear Estimates

46 Edelweiss Securities Limited