MobiKwik to leverage BNPL market
The company is witnessing an exponential growth with 157x growth in Buy Now, Pay Later’ (BNPL) transaction volume, which is expected to reach $45 bn by 2026
Hyderabad: MobiKwik, payment service provider, on Wednesday said that it's well positioned to leverage on the Indian 'Buy Now, Pay Later' (BNPL) market, which is estimated to reach $45-50 billion by 2026. The company is witnessing an exponential growth with an overall BNPL GMV grown by 22 times and 157 times growth in BNPL transaction volume. The repeat rate for MobiKwik's Zip is at 80 per cent.
The fintech company is focused on addressing the unmet credit needs of the digitally savvy millennials from tier 1, tier-2 and tier-3 cities and towns of India. With a focus on bridging the credit gap and providing the unserved Indian population, MobiKwik launched MobiKwik Zip, a flagship BNPL product in May 2019.
It has 24 million pre-approved BNPL users. MobiKwik Zip is an interest-free product with Rs 500-30,000 credit limit available in the user's MobiKwik Wallet with a one tap activation in 15-day cycles. MobiKwik has partnered with 10 lending institutions namely IDFC First Bank, Fullerton, etc. MobiScore - a data science driven credit scoring algorithm is used by the company to analyse the consumer profile and assign a pre-approved limit to each customer.
MobiKwik's consumer payment platform provides MobiKwik with an existing base of 120 million users, handled over $7 billion worth of transactions just in three years, KYC of 45 million users and 3.4 million strong merchant ecosystem, where BNPL can be used, giving users a huge flexibility to transact for their daily life use cases.