India Buy Now Pay Later Services Market – Growth, Trends, COVID-19 Impact and Forecast (2022-2027)

India Buy Now Pay Later Services Market is segmented by Channel (Online and POS), by Enterprise (Large enterprise and small & medium enterprise), and by end-user (Consumer electronics, Fashion & garments, Healthcare, Leisure and entertainment, Retail, and others).

Market Snapshot

India BNPL market
Study Period: 2018-2027
Base Year: 2021
CAGR: >15 %

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Market Overview

Buy now pay later services in India are about to cross USD 7000 million in 2022. 22% of consumers in India bought goods using BNPL services. The 26 to 35 age group is the primary segment of the BNPL market in India. Nearly 70 million Indians have access to credit, accounting for 7% of India. Still, 93% of Indians do not have access to credit.

Pandemic turned people towards online shopping, increasing digital payments and easy tax-free loans driving. 71% have been purchasing more items online since the pandemic. Clothing and Electronics are the major products purchased by BNPL service.

Lazy pay witnessed a 400% growth in the last two years, with 296 merchant partners offering simple as a payment option. Customers like the low penalty for late payments, the app's reliability, and the speed with which customer issues are resolved. Even among niche players, the flexibility of onboarding new consumers has fueled adoption.

Scope of the Report

Buy now pay later is a kind of short-term financing. Consumers can purchase the products and pay later with no interest. India Buy Now Pay Later Services Market is segmented by Channel (Online and POS), by Enterprise (Large enterprise and small & medium enterprise), and by end-user (Consumer electronics, Fashion & garments, Healthcare, Leisure and entertainment, Retail, and others).

By Channel
By Enterprise
Large Enterprise
Small & medium enterprise
By End-user
Consmer electronics
Fashion & garments
Leisure & entertainment

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Key Market Trends

Surging Ecommerce and Digital P2M Payments Boosting the Market

Ecommerce in India is about to cross USD 100 billion soon. Digitizing the economy and providing cheap internet to the people are a few of the many reasons that boosted digital sales growth in India. Buy now pay later is becoming a preferred mode of payment for e-commerce transactions. It will comprise 14% of the transaction value for e-commerce companies over the next few years.

India is one of the world's largest millennial and Gen-Z populations, and these generations are contributing more and more to the country's exponential use of smartphones and digital payments. Over the last year, there has been a significant rise in online shoppers, particularly in Tier-2 and 3 cities, due to increasing awareness about e-commerce and the adoption of cashless payments.

India BNPL service market

Rise in Consumer Spending Driving the Market

Consumer spending in India is recovering from the pandemic, and with offices opening, consumer spending is rising. The index of consumer sentiments has risen cumulatively by 36.8% between June 2021 and March 2022 and made a comeback of 56.6% since hitting its lowest point in May 2020.

India BNPL market

Competitive Landscape

The report covers major players operating in India's Buy Now Pay Later services market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players, including Zest money, Paytm post-paid, Free charge, epaylater, and Flipkart pay later.

Recent Developments

  • On October 07, 2021, Zest Money partnered with Colive, a prop-tech platform for rental accommodation, to offer the convenience of Pay Later/ equated monthly installments (EMI) on their stay rent.
  • On August 19, 2021, Capital Float partnered with RazorPay to extend its buy now pay later (BNPL) solution to all RazorPay-enabled online merchants.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Various Regulatory Landscape

    5. 4.5 Insights on impact of technology and innovation in the market

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitutes

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Impact of COVID-19 on the Market


    1. 5.1 By Channel

      1. 5.1.1 Online

      2. 5.1.2 POS

    2. 5.2 By Enterprise

      1. 5.2.1 Large Enterprise

      2. 5.2.2 Small & medium enterprise

    3. 5.3 By End-user

      1. 5.3.1 Consmer electronics

      2. 5.3.2 Fashion & garments

      3. 5.3.3 Healthcare

      4. 5.3.4 Leisure & entertainment

      5. 5.3.5 Retail

      6. 5.3.6 Others


    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Zest Money BNPL

      2. 6.2.2 Free charge

      3. 6.2.3 Paytm postpaid

      4. 6.2.4 epayLater

      5. 6.2.5 Mobikwik ZIP

      6. 6.2.6 Flipkart pay later

      7. 6.2.7 Olamoney Postpaid

      8. 6.2.8 Money Tap

      9. 6.2.9 Simpl

      10. 6.2.10 Lazy Pay

      11. 6.2.11 Flexmoney

      12. 6.2.12 Amazon Pay later

      13. 6.2.13 Capital float

      14. 6.2.14 Slice

      15. 6.2.15 Kreditbee

      16. 6.2.16 Postpe*

    3. *List Not Exhaustive


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Frequently Asked Questions

The India Buy Now Pay Later Services Market market is studied from 2018 - 2027.

The India Buy Now Pay Later Services Market is growing at a CAGR of >15% over the next 5 years.

Lazypay, Paytm Postpaid, Zest money, Free charge, Simpl are the major companies operating in India Buy Now Pay Later Services Market.

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