ZestMoney and Pine Labs’ Partnership in the Changing Dynamics of POS Lending Market in India

With the rising income of the middle-class, a booming consumption rate as well as digital connectivity and the high FinTech adoption rate along with rapid urbanization and population growth, the Indian consumer finance market is growing steadily, and it is improving access to retail lending for the new and untapped sections of the society. The consumer finance market is also getting redefined with the advent of FinTech companies despite the market being dominated by NBFCs such as Bajaj Finance and big private lenders such as HDFC Bank and ICICI Bank.

With e-commerce accounting for less than 3% of the Indian retail market and with over 90% of the Indian retail market still owned by unorganized players, there is a huge opportunity for offline merchant payment technology. Additionally, the digital lending market is expected to grow to $100 billion by 2023, according to the Boston Consulting Group. Given this opportunity as well as the penetration and adoption of POS devices via merchants across the country, several payment FinTech players, including Razorpay, PayU India, and Instamojo, have started capitalizing on this opportunity. 

These FinTech players who are into processing the payment transactions are analyzing the data from POS machines to offer collateral-free loans to the m ...