Global card networks Visa and Mastercard plan to launch their respective Buy Now, Pay Later (BNPL) platforms in India by the end of FY22, three top industry executives aware of the developments told ET.
Visa and Mastercard are reportedly scouting for partners to set up platforms that would facilitate retail brands and online merchants to directly tie up with banks and offer their customers various payment options, the sources cited above said.
“BNPL platforms by both Visa and Mastercard are in the works, and it makes complete sense as they have a goldmine of customer data to create platforms for banks looking to enter this space,” said the chief executive at a large private bank.
Both Visa and Mastercard have approached major card-issuing local banks on their respective networks with product propositions. Visa is also said to be in talks with one or more payment gateways for a strategic tieup, sources added.
Another source involved with the talks said that the plans were finalised after the Reserve Bank of India (RBI) announced stringent card data storage norms. The new rules set to kick in from 2022 will prohibit merchants from storing card data of customers, which could significantly hamper their ability to offer customised discounts and EMI options.
„From January, the credit card market is expected to shrink due to the new rules that restrict merchants from storing card details,” said an executive cited above. „For the large payment operators, BNPL allows an opportunity to use scale.”
Through the festive season, top consumer Internet companies, including Flipkart, Amazon, Paytm and Byju’s, are offering BNPL services to customers. The premise is simple: Millions of Indians who took to online shopping amid the Covid-19 pandemic are opting for interest-free credit at checkout points on online platforms. Banks, too, are willing to underwrite the risk.
Industry insiders say the size of India’s annualised BNPL market in gross transaction value terms has grown to around $1.5-2 billion in less than 18 months, from just a few million dollars in 2019.
„Dupa ce oamenii creeaza un cont PayByFace si au adaugat cardul, selfi-ul si PIN-ul, si au avut un pic de curaj sa se duca sa incerce, daca au incercat o data plata prin recunoastere faciala nu mai folosesc altceva (n.r. ca modalitate de plata). 80% dintre ei numai asta folosesc. Le place la nebunie.”
Afla aici rezultatele in adoptia platii prin recunoastere faciala.