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Why BUY NOW PAY LATER Cards are facing the heat from the Regulators? : DARK side of BNPL
In the past 2 years, The buy now pay later industry has been one of the fastest-growing industries in India. and whats absolutely mind-blowing is that the BNPL market is growing so fast in India, that it achieved an insane growth rate of 569% in 2020 and 637% in 2021.
But on 20 th of June 2022, the Reserve bank of India made an announcement that shook the entire BNPL industry!! This notification disallowed non-bank prepaid wallets and prepaid cards from loading credit lines into these platforms. In simple words, This is a huge blow to some of the fastest-growing Indian start-ups like Slice, Uniorbit, and Jupiter. and until now these start-ups with their credit lines have played a vital role in taking financial inclusion and digitalization to the next level in India,
So the question is, What is the problem with the buy now pay later industry?
Why is the RBI hindering its growth with these regulations in spite of the industry growing at such a rapid pace?
and most importantly, as a student of Business what are the study materials to help you understand the super fast BNPL market of India?