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With tech innovation and growing digital financial services, all industries are shifting to online space. The education sector is no exception where several edtech businesses have come into play. In fact, India’s edtech industry is set to reach $10.4 billion by 2025 with 37 million paid edtech users.
The edtech industry further skyrocketed during the pandemic when physical classes were shut down and digitalisation became the new normal. In the last couple of years, edtech startups became the most funded ones making India one of the edtech capitals of the world.
When conventional ways could not make quality education accessible to a large audience, edtech attempts to bridge the gap.
But the edtech industry also comes with its own set of challenges!
While it is important to have engaging content and quality teachers, it also requires robust payment infrastructure to make it more accessible. Traditional financial institutions were more of a brick-and-mortar structure and thereby, could serve a limited area. With digital payments, students from rural and remote areas can access online education.
Moreover, many students still cannot afford to pay the high fees for tuition and courses. Even digital education platforms come with high upfront costs. This not only makes education expensive for students but also affects the revenue flow for many edtech businesses.
However, ever since Buy Now Pay Later services have surfaced in the market, it has helped resolve the affordability concerns of customers along with cash flow issues of the businesses.
The BNPL payment model in the edtech sector allows students to ‘Study Now Pay Later’. Students or their guardians can purchase a course on digital platforms even when they fall short of money to pay the total upfront costs.
Customers can repay the BNPL lenders in a stipulated time with zero-cost or low-cost EMIs.
With multiple edtechs and BNPL lenders in the market, partnerships between the two plays a vital role in enhancing each other’s business.
But there’s a catch!
Integrating with each BNPL lender becomes a tedious task for edtechs. But you need not worry!
We are here with our BNPL Suite at Cashfree Payments, saving you time and effort. Connect with our multiple BNPL lending partners with a single and smooth integration process.
Why Should You Choose the BNPL Suite of Cashfree Payments?
Cashfree Payments is designed to meet the business needs of various industries where we offer payment solutions, payouts, BaaS and other financial services on one platform.
What makes our BNPL Suite interesting and a valuable payment option for your business is:
- Instead of integrating with multiple BNPL lenders one at a time, get access to our various partners in a one-time integration process. Go Live in Quick Time with our Customised Payment Gateway Integrations and Plug-ins
- We offer the widest range of ‘Buy Now Pay Later’ options. Customers of edtech, e-commerce, travel and other businesses can find flexible payment options with card and cardless EMI
- You can unlock more revenue by reducing drop-offs and attracting new customer segments by enabling easy access to credit
- In partnering with Cashfree Payments and using the BNPL Suite, you can increase customer conversions by 30% and average order value (AOV) by 40%-60%
- BNPL solutions will help the business merchants to retain more customers, therefore, turning one-time customers into loyal ones
- Customers can have a faster and smoother check-out experience with a one-click pay-later option where businesses can provide No-Cost EMIs and offers through discounts and cashback offers
- Cashfree Payments offer custom pricing designed for enterprises with discounted prices, a dedicated account manager and early access to new features. You also have supported over Whatsapp and other channels
- Other than credit/debit card EMI and cardless EMI, we offer various Pay Later partners. Here’s why Cashfree Payments is your best choice for an affordability payments partner:
- KreditBee, a leading Cardless EMI provider with 6 million+ customers, is an exclusive BNPL partner on Cashfree Payment Gateway
- Native OTP on Freecharge Pay Later: Provide quick and easy checkout to customers and boost your success rate
- Exclusive cashback and discount offers to your customers run by our partners like Simpl, Freecharge, ZestMoney and others on a seasonal basis
Read more to know How to Integrate Cashfree Payments’s BNPL Affordability Suite onto your Checkout Page!
How Vedantu Achieved a 3.3x Increase in AOV with Cashfree Payments BNPL Suite
With the boom of edtech, customers have also started looking for viable payment options that can help them purchase online courses. The conventional credit system could not solve the customers’ problems which would ultimately impact the revenue of edtech startups.
Vedantu, an Indian online tutoring platform aims at disrupting conventional education. It envisions offering a learning experience that is free of the inefficiencies that plague traditional educational models.
Vedantu was well aware of the fact that one of the biggest challenges for most Indians is financial access to quality education. Especially during the lockdown, although edtech was scaling up, customers had tightened budgets and limited purchasing power to afford high-priced tutorials online.
So, it was looking for simple and easily accessible solutions for customers that would help lower the upfront cost of signing up for the courses.
At the same time, it was important for Vedantu to ensure that its revenue keeps growing or at least stays steady.
Vedantu partnered with Cashfree Payments! It achieved a 3.3x increase in average order value for EMI and BNPL payments.
Customers got an easy and effortless checkout experience with our wide range of BNPL solutions at the point of sale. They could buy Vedantu’s supplementary educational content for their children by pushing the costs to the future.
Simultaneously, Vedantu would receive the price of the courses directly at the time of purchase, making this a mutually beneficial solution for all parties.
The BNPL offers come at attractive rates, often at 0% interest and no additional costs.
Customers can purchase courses via card/cardless EMIs, and new-age digital wallets along with BNPL providers such as ZestMoney and Kreditbee.
Can BNPL Transform Your Edtech Business Too?
Buy Now Pay Later helps in improving the customers’ accessibility and affordability. It provides them with quick access to a short-term loan which they can repay in monthly instalments.
Most of the BNPL offers nowadays come with ZERO charges or at very minimal costs, which is an add-on!
BNPL can help revolutionise the edtech sector because it has solutions for customers who face a cash crunch. Traditional banking and credit systems do not provide that flexibility.
Conventional loan offers often require collaterals, physical presence at the bank and paperwork. They also come with processing fees, deductions, and interest charges as well as take time to process.
Similarly, there is low credit card penetration in the country because banks usually offer it to prime customers. To add to it, it comes with high rates of interest and often certain hidden costs
On the other hand, BNPL can offer quick solutions to all of the above concerns. It has emerged as a sustainable model for education financing.
With Cashfree Payments’s BNPL Suite, customers get an instant credit at no extra cost for small-ticket purchases on edtech sites and apps with faster and safer checkouts. It helps in expanding the customer base, improving the conversion rates and increasing the average order value (AOV).
So, do you want a competitive edge over your competitors?
