Buy Now, Pay Later (BNPL) in India has experienced a rapid increase in adoption, with its share of e-commerce sales in Asia-Pacific (APAC) surging from just 0.1% in 2019 to an estimated 5.8% in 2023, according to GlobalData.
India’s remarkable BNPL growth has been driven by its low credit card penetration and limited access to formal credit, coupled with a booming e-commerce market that has been fueling demand for BNPL services.
However, recent stringent regulations imposed by the Reserve Bank of India (RBI) have significantly impacted the sector, leading many fintech companies to reassess their BNPL strategies.
For example, ZestMoney, a BNPL fintech supported by Goldman Sachs and other notable investors, is set to shut down in 2024 following challenges with high defaults and operational inefficiencies. Similarly, Freecharge Pay Later is no longer available, according to its website, signaling further shifts in the BNPL landscape.
Other companies are adjusting their business models. Paytm, for example, is pivoting from its BNPL Postpaid product to focus on higher-ticket personal and merchant loans. Similarly, Slice, originally a BNPL firm, has transitioned to offering prepaid credit cards and is now merging with North East Small Finance Bank.
Given these significant changes, we are revisiting today our 2021 list of the Top 10 BNPL Players in India to provide an updated overview of the leading BNPL brands and companies in the Indian market for 2024.
Top 10 BNPL Players in India
OlaMoney Postpaid
OlaMoney Postpaid is a payment service introduced by Bengaluru-based cab aggregator Ola in 2019. Designed as a convenient “use-now-pay-later” option, it allows users to pay for their Ola rides and other online services without the need to frequently recharge a wallet.
Instead, users can accumulate their charges over a billing cycle of 15 or 30 days, depending on their plan, and receive a single bill for the total amount at the end of the period.
Ola is an Indian transportation company known for its ride-hailing services and its expansion into various other business ventures, including financial services and cloud kitchens.
Through its financial subsidiary, Ola Financial Services, the company is focused on building a mobility-centric financial services arm. Currently, the company offers several financial products, including OlaMoney, a digital wallet service; OlaMoney Postpaid, a post-paid credit service developed in partnership with IDFC and Aditya Birla Finance; micro-insurance products; and the OlaMoney Credit Card, which is issued in collaboration with the State Bank of India.
Ola’s massive ecosystem makes it a formidable player in India’s BNPL space.
Flipkart Pay Later
Flipkart, a leading Indian e-commerce company, offers a BNPL service known as Flipkart Pay Later, designed to simplify and enhance the online shopping experience.
With Flipkart Pay Later, customers can bypass the usual hurdles of payment methods like cash on delivery or the delays associated with debit and credit card transactions.
This service provides instant credit of up to INR 100,000 (US$1,200), allowing users to shop with ease and convenience.
Customers can choose to pay the entire balance the following month or opt for monthly installments, all through a 30-second application process that requires only a person’s government-issued identification number, along with bank account authentication.
Flipkart Pay Later also extends its convenience to utility bill payments, covering expenses like gas, electricity, and postpaid bills.
Amazon Pay Later
Amazon Pay Later is a convenient credit service offered by Amazon.in that allows customers to make purchases on the platform and pay for them later, either in the next month or through easy monthly installments ranging from three to 12 months.
The entire process is digital and can be completed in under two minutes, without the need to provide credit card details. Once the one-time setup is complete, users can select Amazon Pay Later as a payment option at checkout, streamlining the purchase process.
The service is provided by Amazon Finance India in collaboration with third-party lending partners, such as Axio and IDFC FIRST Bank. Amazon Pay Later offers several benefits, including an instant decision on the credit limit, no processing or cancellation fees, and no charges for early repayment.
Additionally, users can easily monitor their spending, repayments, and credit limit through a dedicated dashboard.
To be eligible for Amazon Pay Later, customers must have an Amazon.in account with a verified mobile number, a valid tax card, a bank account with a selected bank, and an officially valid address proof such as a driving license, voter ID card, recent utility bills, or passport.
Users must also be at least 21 years old. Eligibility and the credit limit are determined based on the information Amazon already has, along with the customer’s credit bureau history and other factors assessed by the lending partner.
ePayLater
ePayLater is a BNPL operators in India that provides retailers with instant credit of up to INR 2.5 million (US$30,000) at 0% interest for a period of 14 to 30 days, with no processing fees.
This service allows businesses to purchase products at competitive prices and pay the total amount within the interest-free period, enabling them to manage their cash flow effectively. The credit limit can be used repeatedly after each repayment, offering ongoing financial flexibility.
To access ePayLater, retailers simply need to download the app, submit the necessary details, and receive immediate credit approval, which can range from INR 25,000 (US$300) to INR 2.5 million (US$30,000).
The approved credit can be used at any time within a year for product purchases. Retailers can repay the amount used within a minimum of 0 days and a maximum of 30 days, though the repayment period may vary depending on the merchant.
ePayLater also offers a Purchase Finance Program, allowing buyers to pay for invoices using their credit limit and repay later at an annual percentage rate (APR) of 28%. This program provides a repayment period of 7 to 90 days, depending on the terms of the invoice discounting.
ZIP Paylater
ZIP Paylater is a credit service offered by MobiKwik that provides users with up to INR 60,000 (US$715) in instant credit, allowing them to make purchases and pay bills with the flexibility to settle the amount later.
This service can be used for a wide range of expenses, including shopping for clothes, groceries, electronics, ordering food, paying bills, and more at over 100,000 brands across India, such as Swiggy, Zomato, Flipkart, Myntra, and Pharmeasy.
ZIP Pay Later offers an interest-free credit line, with no additional charges if the bill is paid within the specified billing cycle, which can be either 15 or 30 days.
The initial credit limit is determined based on the user’s credit history, but it can increase over time with consistent on-time repayments. This feature not only provides financial flexibility but also helps users improve their credit score by ensuring timely repayments.
Axio
Axio, formerly known as Capital Float, is a Bengaluru-based fintech company that operates with a non-banking finance company (NBFC) license. The company specializes in offering credit solutions, including loans, through its own resources as well as through co-lending partnerships with banks and other NBFCs.
Through Axio, shoppers can opt for flexible payment terms ranging from three to twelve months, making online shopping more accessible and manageable. The company supports over 3,000 merchants, enabling them to embed credit financing and money management tools directly at the checkout.
Axio has successfully reached around 10 million credit customers and boasts an annualized disbursal volume of over US$1 billion.
The startup secured in August 2024 a US$20 million equity investment to scale its lending operations, enhancing its checkout finance options, and expanding its range of credit products. Since its inception in 2013, the company has raised US$671 million in debt and US$137 million in equity from prominent investors, including Creation, Elevation, Ribbit Capital, Sequoia, and Lightrock.
Simpl
Founded in 2016, Simpl is a prominent fintech company specializing in BNPL. The platform allows customers to access a credit line at the checkout page of online storefronts and delivery apps, offering a convenient and interest-free window to repay their bills.
Simpl’s innovative BNPL solution enables users to make purchases online and repay the amount within a few days without incurring any additional charges.
This ease of use has attracted over eight million users, and the platform has successfully processed more than 49 million transactions. Additionally, Simpl offers a BillBox product, which facilitates seamless bill payments for its users.
Simpl has rapidly grown its presence in the Indian market, partnering with over 26,000 merchants, including major names like Zepto, BigBasket, and Nykaa.
In fiscal year 2023, the startup experienced a 176% increase in operating revenue, reaching INR 873 million (US$10.4 million), up from INR 316 million (US$3.8 million) in the previous year. The company hopes to hit profitability by Q1 of fiscal year 2026.
LazyPay
LazyPay is a digital credit solution in India, known for its fast and seamless credit solutions. Launched by PayU in 2017, LazyPay offers a one-tap digital checkout process across over 250 popular apps, including Swiggy, Zomato, Book My Show, Make My Trip, Vodafone, and TataSky, allowing users to access instant credit with minimal hassle and enabling quick purchases and flexible repayments.
The platform offers several flexible repayment options, including 15-day interest-free credit, revolving balances, and low-cost monthly installment schemes. Additionally, LazyPay provides instant personal loans through its app, catering to a wide range of financial needs, from everyday purchases to emergencies.
The platform extends beyond just online purchases. Through its app, users can access digital credit via the national instant payment system, making it possible to use credit at any time by scanning a QR code at local stores or using a unique LazyPay handle for online payments. This innovative approach makes LazyPay a pioneer in offering credit through the Unified Payments Interface (UPI), a first in India.
In June 2024, LazyPay expanded its reach by partnering with quick commerce app Blinkit, offering users a one-tap checkout experience with a credit line that incurs no additional cost to merchants.
This partnership adds Blinkit to LazyPay’s growing portfolio of quick commerce partners, which includes Zepto, Instamart, and Big Basket.
Flexmoney
Flexmoney is a pioneering fintech company with a mission to simplify and democratize consumer credit in India. The company’s flagship product, InstaCred, is a digital credit infrastructure that enables banks and NBFCs to offer branded, instant, cardless point-of-sale (POS) credit seamlessly across Flexmoney’s extensive network of partner merchants. The platform is designed to provide frictionless and secure purchase finance options, allowing lenders and merchants to offer instant credit to consumers directly at checkout, without the need for a physical credit card.
Flexmoney has already made substantial progress in realizing its vision with over 25 million pre-approved cardless BNPL credit lines from six trusted banks and NBFCs active on its platform. Its strategic goals include expanding its credit network by onboarding more lenders and merchants and introducing additional products to strengthen its market position.
Fibe
Fibe, formerly known as EarlySalary, is a prominent consumer lending app in India. The company focuses on addressing the financial needs of young professionals, a demographic often underserved by traditional lenders. Fibe’s core mission is to simplify financial access for mid-income groups, helping them achieve their goals and upgrade their lifestyles.
The platform offers a variety of financial products, including short-term instant cash loans, long-term personal loans, and BNPL plans. It caters to sectors such as health, education technology, and consumer technology, ensuring that users can find financial solutions for a range of needs.
One of the standout features of Fibe is its instant personal loan service. Users can apply for loans up to INR 500,000 (US$6,000) through the Fibe app. The entire process is streamlined for convenience: users can receive funds directly into their bank accounts within just two minutes. The repayment options are flexible, allowing users to choose from tenures ranging between three and 36 months.
Fibe has served over 2.5 million customers and has disbursed more than 6.5 million loans amounting to over INR 225 million (US$2.7 million).
Featured image credit: edited from freepik
