How BNPL is augmenting the success of India’s retail industry

financialexpress.com:

– By Mayur Mulani

Undoubtedly, one of the most dynamic and fast-evolving industries in India is the Retail industry. Driven by an aspirational middle-class population and the rising purchasing power, India’s retail industry is growing in leaps and bounds. A major catalyst in this growth is the tech-led innovation being seen in the credit financing space. From big-ticket items to small purchases, Indian consumers are not hesitating to avail card-linked credit financing options at the point of sale to check out products from their wish list this festive season. Dubbed Buy Now Pay Later (BNPL), these credit financing options are often misunderstood for many reasons. 

Debunking the myths around No-Cost EMIs

1. Cost of the product includes the interest (hidden charges): One of the biggest misnomers aroundno-cost EMIs is the claim that product prices are elevated to adjust for the discounts. In the era of heightened consumer awareness, availability of multiple shopping options both online and at offline retail stores, today’s smart shoppers can instantly do price comparisons from multiple sources before committing to a purchase. Increasing the cost of the product to accommodate a Pay Later financing therefore is not in the interest of the brands trying to sell to consumers.

2. Consumers are gullible: Consumer financing has always existed, what has improved exponentially is how these are delivered to the end consumer aided by technology. Today, with just a few taps on a POS terminal, consumers can have quick access to their approved line of credit from their banks and avail no-cost EMIs. The experience has shifted from paper-based, documentation-heavy, human interactions with an in-store financier, to paperless and swift