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ZestMoney extends BNPL to 75,000 physical stores as part of omnichannel strategy

ZestMoney said that it was steadily growing its base of offline network via its point-of-sale payments partners and is targeting to reach 4 lakh offline stores by next year.

August 26, 2021 / 05:01 PM IST
Representative image

Representative image

Fintech lender ZestMoney said on August 26 that it has expanded its retail partnerships to include over 75,000 physical stores in the last 12 months. It already has a network of over 10,000 online partners for its Buy Now Pay Later (BNPL) product across India.

Lizzie Chapman, CEO, and Co-Founder of ZestMoney said, “The offline network is emerging as one of the strongest drivers for growth in the company. Our strong partnerships with PoS platforms like Pine Labs, Ezetap, and Mswipe help us reach a wide number of customers across the country. With 75,000 stores now part of the Zest network, we are one of the largest BNPL players in the country.”

The company said it was steadily growing its base of offline network via its point-of-sale (PoS) payments partners and is targeting to reach four lakh offline stores by next year.

“We have aggressive expansion plans and are doubling down on partnerships with large format and single-chain retail stores. Our partnership with Apple is receiving tremendous response especially in markets beyond metros with iPhones now affordable for a large number of people. By the end of this year, we expect offline contributing to 20 percent of our Gross Merchandise Value (GMV). This will play a crucial role in helping us reach $1 Bn in GMV by this year,” Chapman added.

While smartphones and electronic devices are the largest categories driving demand for BNPL products, Electric Vehicles, batteries, solar panels are fast-growing. ZestMoney said it expects consumer durables and home appliances to further drive demand in the coming months.


Chapman explained, “Mobile, Aadhar, and India stack has made it easier to onboard customers digitally. We have seen merchants benefit with quicker conversion of a sale and an uptick in average ticket size. Some of them have seen conversion go up by 3x with digital BNPL made available.”

The company says it is witnessing robust demand for its BNPL offering at offline stores, especially in Tier II and III markets, with transactions levels back to what they were before the second wave of COVID-19 in March 2021.

Furthermore, the company is witnessing a 50 percent month-on-month growth in the offline business and is expecting demand to double during the upcoming festive season.

70 percent of ZestMoney’s registered customers are from Tier II and II cities with Bhiwadi, Vijayawada, Roorkee, Visakhapatnam, Mohali, Raebareli, Mathura, Udupi, Kanchipuram, and Siliguri seeing massive demand.

ZestMoney has tie-ups with players like Amazon, Flipkart, and MakeMyTrip to enable digital credit lines to customers.

According to a Bernstein report, India’s BNPL market is at $15 billion and is likely to grow to a $100-billion opportunity by 2025. The report envisages fintech BNPL players to constitute around 26 percent of the total market by 2025.
Moneycontrol News
first published: Aug 26, 2021 05:01 pm
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