India Buy Now Pay Later Market: Current Analysis and Forecast (2025-2033)

India Buy Now Pay Later Market Size & Forecast

The India Buy Now Pay Later Market was valued at USD ~16,200 million in 2024 and is expected to grow to a strong CAGR of around 11.90% during the forecast period (2025-2033F), owing to the rising digital payment adoption.

India Buy Now Pay Later Market Analysis

A service known as Buy Now Pay Later or BNPL is whereby one is given a short-term credit facility to enable them to buy goods or services and then pay in installments without incurring interest charges. It is a form of credit card, whose target market includes both the first-time and second-generation credit card customers, as well as the younger generations who are into online shopping. BNPL is incorporated at the point of purchase, either online or in physical settings, thereby making it easy to use at the time of purchase.

To boost business in India, BNPL providers are diversifying their partners in sectors including e-commerce, travel, healthcare, and education. Banks and other businesses are adopting AI-instrumented credit scoring to increase the number of customers while remaining safe. There have been promotions of zero-cost EMIs and instant approvals, and even added benefits for more usage to consumers. Some of the leading players are also promoting campaigns for and supporting regional apps in Tier II and III cities.

On September 05, 2024, Infibeam Avenues Ltd announced a collaboration between its flagship digital payments platform, CCAvenue, and ShopSe India, a wholly digital-first EMI/BNPL marketplace. The partnership offers a flexible payment option to millions of consumers across India while completing payments on innumerable merchant websites powered by the CCAvenue payment gateway.

India Buy Now Pay Later Market Trends

This section discusses the key market trends that are influencing the various segments of the India Buy Now Pay Later market, as found by our team of research experts.

Shift Toward Zero-Interest and No-Cost EMI Products

The rising trend for the BNPL sector in India is the presence of zero-interest and no-cost EMI products that are rapidly popular among price-sensitive consumers. These features make it possible for the users to share the costs in a manner that does not cost them anything extra among the various income brackets. Players are currently courting merchants so that they can effectively bear the cost of interest as a marketing strategy for the acquisition as well as the retention of clients. The day in question is generally applicable during holidays, during which people are most likely to go on bargain hunting, and during the purchase of electronics, appliances, and other costly items that need temporary price slashing. This is because several consumers believe that BNPL is a wiser option than credit cards since it is clearer and simpler. Moreover, the advantage of No-Cost EMI products is that the customers can make repeat purchases and have a higher cart value. This is increasing pressure for more BNPL providers to make it a standard offering among them in the market. Continued awareness and trust in BNPL will make zero-interest BNPL a standard aspect of the digital checkout across industries.

Buy Now Pay Later Industry Segmentation

This section provides an analysis of the key trends in each segment of the India Buy Now Pay Later market report, along with forecasts at the regional and state levels for 2025-2033.

The online channel category is expected to grow with a significant CAGR during the forecast period (2025-2033).

Based on the channel, the market is segmented into online, point of sale (POS). Among these, the online channel category is expected to grow with a significant CAGR during the forecast period (2025-2033). The online sector is one of the essential factors that has facilitated BNPL in India because of the ease of incorporation with this checkout system. BNPL helps improve the shopping experience of the customers by approving credit immediately and thus decreasing cart abandonment. Businesses that fall under e-commerce, such as travel, deliveries, and education services, are increasingly adopting BNPL to increase sales. It mainly targets the youth who need the flexibility of the service without paying with credit cards. This convenience has made the trend of digitization much faster among the Tier I to Tier III cities.

E-commerce Category Dominates the Buy Now Pay Later Market.

Based on the end-user industry, the market is segmented into e-commerce, travel, healthcare, electronics, and others. Among these, the e-commerce category dominates the buy now pay later market in 2024. E-commerce is the key contributing factor for BNPL in India because a significant chunk of transactions comes from this segment. E-commerce marketplaces such as Amazon, Flipkart, and Myntra, among others, have thus incorporated BNPL to clip repeat purchases and enhance the basket size. It provides credit facilities to the otherwise financially excluded groups, bringing in inclusiveness. This boosts customer acquisition when BNPL is prompted most often: during flash sales and festive seasons. The large consumer reach of e-commerce expansion, especially in small towns, has greatly increased the BNPL sector’s linkage. In February 2025, Flipkart acquired checkout financing platform BharatX to integrate buy now, pay later (BNPL) and installment-based payment solutions into UPI transactions. 

North India held a dominant share of the buy now pay later market.

With major consumption center locations such as the Delhi NCR region, North India stands out as the prime influencer toward BNPL because of most of this region's users’ high internet usage and advanced digital inclination. The region has a strong interest in and adoption of instances in fashion, electronics, and education. There are currently new entrants into the market focusing on smaller cities such as Jaipur, Chandigarh, and Lucknow. The market drivers include increased usage of smartphones and increased consumer uptake of online shopping. North India also depicts a growing inclination toward credit-based electronic transactions.

India Buy Now Pay Later Competitive Landscape

The India Buy Now Pay Later market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top India Buy Now Pay Later Companies

Some of the major players in the market are Lazypay, ZestMoney (DMI Infotech Solutions Private Limited), Paytm (One97 Communications Limited), Freecharge Payment Technologies Pvt. Ltd., ePayLater, North East Small Finance Bank Ltd. (Slice), Amazon.com, Inc., Flipkart Internet Private Limited, OLA Financial Services Private Limited, One Sigma Technologies Private Ltd. (Simpl).

Recent Developments in the Buy Now Pay Later Market

• On March 1, 2022, Mastercard, DBS Bank and Pine Labs partnered to launch ‘Mastercard Installments with Pine Labs’ - a new program that allows DBS/POSB credit cardholders to pay via interest-free installments at merchants with the ‘Pay Later’ identifier, simply by presenting their DBS/POSB cards at checkout.

• On November 9, 2021, Mastercard launched its first “Buy Now, Pay Later” commercial card solution for small business financing in APAC. Mastercard announced the next evolution of the payments model with the launch of a new commercial card offering designed specifically for small and medium enterprises. Called Mastercard Installments Card for Business, it enables financial institutions to provide small businesses with a similar payment product: the first-of-its-kind, network-based, open-loop installments solution to be made available anywhere in the world.

• On June 29, 2021, Amazon Pay announced it had reached 2 million customer users who signed up under Amazon Pay Later. Launched amidst the pandemic last year to enable purchases of essentials as well as high-value items, allowing customers to buy now and pay next month or in installments (EMIs).

India Buy Now Pay Later Market Report Coverage

Reasons to Buy India Buy Now Pay Later Market Report:

• The study includes market sizing and forecasting analysis confirmed by authenticated key industry experts.

• The report briefly reviews overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, type portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional level analysis of the industry.

Customization Options:

The India Buy Now Pay Later market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.