LazyPay, a Buy Now Pay Later (BNPL) fintech company in India, has extended its Pay-Later services for the Small and Medium Businesses (SMB) ecosystem through its partnership with Dukaan, an app that lets retailers create online stores.
Through the collaboration, small businesses and entrepreneurs will be able to expand their operations by taking advantage of the BNPL solution. This partnership will provide a seamless checkout experience for quick transactions for end-users.
The partnership demonstrates the growth of LazyPay’s merchant ecosystem and the high demand for efficient, easy, and hassle-free BNPL solutions. According to the company, LazyPay’s merchant ecosystem has grown multifold which currently stands at 46,000 since its launch in 2017.
Reportedly, close to 60 per cent of Dukaan’s merchants for the mobile-first app are from the Tier II and III markets. Besides, integrating the BNPL solution into available payment modes will help business owners in increasing sales and encourage first-time customers to shop repeatedly.
By leveraging LazyPay’s strong user base, the partnership may also accelerate customer adoption. Additionally, Dukaan will benefit from LazyPay’s near 100 per cent transaction success rate in addition to quick and seamless checkout experiences.
Sharing his views, Varun Vummidi, Payments Head, LazyPay, said, “India is a booming economy and SMBs (small businesses) are contributing largely towards growth. They are becoming ubiquitous with the increasing adoption of technology. We are excited to partner with Dukaan as Buy Now Pay Later solutions to increase opportunities for SMBs, allowing them to cater to a wider section of online customers with a penchant for the faster and hassle-free shopping experience.”
Commenting on the collaboration, Suryansh Kumar, VP Business, Dukaan, said, “Joining hands with LazyPay will be a catalyst to our business, by helping us add to our objective of providing the best services to our customers. We are looking forward to this collaboration.”
LazyPay extending its services to SMB merchants is a strategic response to BNPL becoming one of the preferred payment options in current times. SMBs are considered the core of the country’s economic growth.
An industry survey claims that technology adoption in small businesses has increased to 40 per cent from 29 per cent due to the Covid-19 pandemic. Furthermore, as per LazyPay’s estimates, BNPL will boost its market share by 6 per cent from 3 per cent to 9 per cent in 2024, making it the fastest-growing option for online payments in the country.
Currently, the BNPL market has been quietly expanding in the fintech space as digital lenders increasingly target consumers who lack access to credit cards or feel reluctant to use plastic money for a variety of reasons.
In recent times, legacy banks including ICICI Bank and Axis Bank as well as non-fintech businesses such as Amazon, Flipkart, and BYJU’S have entered the market, perceiving the chance to serve a larger audience.
As per reports, gross transactions in the BNPL space shot up to $1.5-2 Bn in 18 months from a few million in 2019. Additionally, market forecasts show that India’s BNPL sector is expected to reach $100 Bn by the end of 2023.