Buy Now, Pay Later (BNPL) is a type of short-term financing that lets you buy something now and spread the payment over the next few weeks or months instead of paying the full amount upfront.Â
In India, BNPL has grown alongside e-commerce and digital payments. Banks, NBFCs and UPI platforms are also becoming part of the BNPL ecosystem. The Indian BNPL market is estimated at $29.11 billion in 2026, up 17.1% from 2025.Â
Here are the latest numbers on BNPL market size, users, spending and growth in India.
BNPL Statistics India 2026 (Editor’s Picks)
- India’s BNPL market is worth about $29.11 billion in 2026.
- The market is projected to reach $53.90 billion by 2031.
- India is estimated to have around 100 million BNPL users in 2026.
- 82.9% of BNPL revenue came from online transactions in 2025.
- Gen Z accounted for nearly 39% of India’s BNPL market in 2025.
- Consumer electronics was the largest BNPL category in India, accounting for about 35% of the market in 2025
Source: Research and Markets
How Big Is the BNPL Market in India?
India’s BNPL market is estimated at $29.11 billion in 2026. The market was worth about $24.86 billion in 2025 and is projected to reach $53.90 billion by 2031, according to PayNXT360’s latest India BNPL market data.
| Year | BNPL Market Size |
| 2025 | $24.86 billion |
| 2026 | $29.11 billion |
| 2031 | $53.90 billion* |
Source: PayNXT360 Report
How Many BNPL Users Are There in India?
India is estimated to have around 100 million BNPL users in 2026. The growth of e-commerce and digital payments has helped BNPL expand, with the service now increasingly linked to UPI, digital wallets and card-based payments.
Number of BNPL Users in India
| Year | Estimated BNPL Users in India | Notes |
| 2020 | 5 million | Pandemic boosted online shopping and BNPL adoption |
| 2021 | 12 million | Fintechs expanded BNPL offerings |
| 2022 | 28 million | BNPL spreads beyond electronics to fashion, travel and everyday spending. |
| 2023 | 55 million | User base roughly doubles in two years |
| 2024 | 80 million | Growth driven by Tier‑2/3 cities and quick‑commerce platforms. |
| 2025 | 90-100 million | Industry estimates put the user base around this level |
| 2026 | ~100 million | Widely cited benchmark for India’s BNPL user base. |
Source: Mordor Intelligence
How Much Do Indians Spend Through BNPL?
The total value of BNPL transactions in India is estimated to grow from â‚ą363 billion in FY2021-22 to â‚ą3.19 trillion by FY2025-26, according to PwC.
| Financial Year | BNPL Transaction Value |
| FY2020-21 | â‚ą192 billion |
| FY2021-22 | â‚ą363 billion |
| FY2022-23 | â‚ą643 billion |
| FY2023-24 | â‚ą1.08 trillion |
| FY2024-25 | â‚ą2.01 trillion |
| FY2025-26 | â‚ą3.19 trillion |
Source: PwC India. FY2021-22 onward are estimates.
BNPL transaction limits vary by the type of purchase. PwC says they generally range from â‚ą1,500 to â‚ą25,000, while some providers offer credit limits of up to â‚ą1 lakh.
How Many BNPL Transactions Are Made in India?
BNPL transaction volume was estimated at 2.127 billion in FY2025-26, up from 96 million in FY2020-21. PwC projected a 67% CAGR in transaction volume over this period.
| Financial Year | BNPL Transactions |
| FY2020-21 | 96 million |
| FY2021-22 | 202 million |
| FY2022-23 | 367 million |
| FY2023-24 | 633 million |
| FY2024-25 | 1.257 billion |
| FY2025-26 | 2.127 billion |
How Fast Is BNPL Growing in India?
India’s BNPL market is projected to grow at a 13.1% CAGR from 2026 to 2031. Online transactions accounted for 82.9% of market revenue in 2025, while point-of-sale BNPL is expected to expand as more providers offer BNPL for in-store purchases.
What Do Indians Use BNPL For?
Consumer electronics is the biggest BNPL category in India. It accounted for 34.6% of the market in 2025, according to Mordor Intelligence.
An earlier Benori Knowledge survey found that 71% of respondents used BNPL for electronics, followed by fashion and lifestyle products at 67% and everyday shopping at 57%.
| Purchase Category | Share of Users |
| Electronics | 71% |
| Fashion & lifestyle | 67% |
| Everyday shopping | 57% |
How Popular Is BNPL for Online Shopping?
Online transactions accounted for 82.9% of BNPL revenue in India in 2025, making online shopping the dominant channel. Point-of-sale BNPL is growing faster as the service expands into physical stores.
An earlier survey by Benori Knowledge found that 75% of respondents had used BNPL on e-commerce websites and apps.
Which Age Group Uses BNPL the Most in India?
Gen Z is the largest age group using Buy Now, Pay Later (BNPL) in India. They made up 39.4% of BNPL users in 2025. Millennials were the next-largest group, while older consumers accounted for a smaller share of BNPL users.
Younger consumers are more likely to use BNPL for online purchases and everyday spending, partly because of the convenience of mobile payments and easy access to short-term credit.
Which Companies Offer BNPL in India?
India’s BNPL market includes fintech companies, banks and digital payment platforms. Major players identified by Mordor Intelligence include LazyPay, Amazon Pay Later and MobiKwik ZIP. Traditional banks also offer pay-later products, including HDFC FlexiPay and ICICI PayLater.
Fintechs accounted for 64.1% of India’s BNPL market in 2025, while banks are expected to be the fastest-growing provider segment through 2031, with a projected 24.71% CAGR.
How Does BNPL Compare With Credit Cards in India?
BNPL and credit cards are used by many of the same consumers. In a Benori survey, 45% of respondents said they preferred BNPL even when they owned a credit card.
BNPL is generally designed for smaller, short-term purchases. PwC puts typical BNPL transaction limits at â‚ą1,500 to â‚ą25,000, although some providers offer limits of up to â‚ą1 lakh.
| Metric | BNPL | Credit Cards |
| Typical transaction/limit | â‚ą1,500-â‚ą25,000 range | ~â‚ą4,200 average ticket (limits go much higher) |
| FY2025-26 transaction value | â‚ą3.19 trillion | â‚ą23.62 trillion |
| FY2025-26 transaction volume | 2.127 billion | 5.7 billion |
BNPL is generally used for smaller purchases and short-term repayment, while credit cards offer higher spending limits and broader acceptance.Â
Global BNPL Trends (2026)
- BNPL now accounts for more than $300 billion globally, compared with around $2 billion a decade ago.Â
- BNPL made up 4% of global e-commerce spending in 2025 and is expected to reach 5% by 2030.
- Asia-Pacific recorded $223.4 billion in BNPL transaction value in 2025, almost double the $115.8 billion recorded in 2022.
- Europe accounted for 9% of e-commerce transaction value through BNPL in 2025, compared with 4% globally. Sweden had the highest share at 25%, followed by Finland and Norway at 19% each.
- China had the highest BNPL transaction value in 2025 at $143.3 billion, followed by the US at $107.4 billion and Germany at $71.6 billion.
- In 2026, 118 million people used Klarna globally, making it the largest BNPL provider by active users. PayPal Pay Later has 32 million, followed by Afterpay at 24 million and Affirm at 23 million.
