Arya.ag, an India-based agriculture service platform, has rolled out a buy now, pay later (BNPL) service to assist those in the commodity buying space, BW Disrupt reported.
Currently, buyers in the space get a credit up to INR 25 Indian rupees (about $33,500) with 0% interest for two weeks, but that amount will shortly go up to 2 crores (about $23 million), according to the report.
Buyers who want to use BNPL will have to upload their financial and know your customer (KYC) details, the report stated. After they are onboarded, they can get credit in minutes. Arya.ag is also bridging the gaps between those offering BNPL, and it will provide the solution to warehouse rent, loan repayment and more.
“There is always a need for simple and innovative financial solutions in every sector,” said Arya.ag CEO Prasanna Rao in the report. “BNPL, which is mostly available in the retail space, will now be made available for people in the B2B trade of agri commodities. Through the BNPL service, Arya.ag will bring in more ease and trust in commerce and the market linkage transactions. It will mitigate payment risk for the supplier and add assurances for the buyer, which will benefit farmers, [farmer producer organizations (FPOs)] and small agri businesses selling on the platform.”
There is demand for financial solutions in the commodity market, with BNPL expected to be a heavy driver of revenue in the next six to 12 months, according to the report.
BNPL’s popularity has been increasing due to the financial climate of the pandemic. Afterpay, a prominent firm in the field, has expanded its offering to Nordstrom and Nordstrom Rack, J.Crew, Madewell, American Eagle and others.
Read more: Afterpay Expands BNPL Reach to More Retailers
The partnerships will allow customers of those and other stores to pay in four interest-free installments.
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