(Buy Now Pay Later) BNPL in India are gaining renewed traction as payment apps and fintech platforms explore ways to make short-term credit more sustainable. Flipkart-backed SuperMoney and POP, backed by Razorpay, are introducing instalment-based shopping options for young consumers, allowing them to purchase products such as footwear, apparel, skincare items and gadgets through small-ticket loans.

Key Highlights

• SuperMoney and POP are expanding BNPL in India through small-ticket shopping loans for young and first-time borrowers.
• Marketplace commissions, smaller credit limits and repayment data are central to the new BNPL business model.

The new approach combines digital payments, online shopping and embedded credit. Platforms aim to acquire customers through the Unified Payments Interface (UPI), finance their purchases and use repayment behaviour to assess their eligibility for larger credit facilities.

Unlike the earlier BNPL model, which largely focused on providing checkout credit across third-party merchant platforms, the emerging approach also gives fintech companies access to shopping-related revenue, including brand commissions. This could provide an additional income stream to offset funding expenses and potential credit losses.

SuperMoney and POP Bring BNPL Back Through Shopping Platforms

SuperMoney and POP are targeting young shoppers, including first-time borrowers, with smaller credit limits and short repayment periods.

POP offers customers what its founder and chief executive officer (CEO) Bhargav Errangi describes as a "sachet limit", a small revolving credit facility designed for everyday purchases rather than high-value consumer goods. Its customers can use credit to buy products such as shoes, apparel and protein supplements.

SuperMoney introduced its splitStore offering in August. Under this model, customers pay the first instalment upfront and settle the remaining two instalments over the following two months.

SuperMoney founder and CEO Prakash Sikaria said the upfront payment helps reduce lending risk, while the shorter repayment period prevents customers from taking on an excessive repayment burden.

BNPL Platforms Explore New Revenue Models

The latest BNPL offerings differ from earlier models by combining lending with direct shopping platforms. Instead of depending only on merchant fees from checkout financing, companies can earn commissions from brands selling products through their marketplaces.

According to POP founder Bhargav Errangi, the platform receives commissions of 20–25% from brands on each sale, compared with the 2–5% revenue pool he associated with checkout financing.

This marketplace-led model could give platforms greater flexibility to manage funding costs and credit losses. By controlling the shopping experience and financing facility, companies also aim to strengthen customer relationships and encourage repeat purchases.

SuperMoney and POP Report Higher Festive Shopping Activity

SuperMoney reported a significant increase in shopping activity during the festive sales period. Its daily purchase-value run rate rose around sixfold compared with pre-festive levels, while order volumes increased fourfold.

Fashion accounted for 42% of purchase value, followed by electronics, smartphones, beauty and personal care. The median order value increased to Rs 2,000 from Rs 890 two months earlier. Around 65% of its shoppers were below 25 years of age.

At POP, credit-funded purchases accounted for 40% of orders within four months of the product's launch, compared with less than 10% previously, when credit purchases were largely made through cards. Fashion contributed 40% of its credit sales, while the platform added more than 200 brands during the September quarter.

Also Read: BlueStone Business Grows 45% in Q3 FY27 on Festive Demand

Small Credit Limits Aim to Manage BNPL Risks

Despite the renewed interest in BNPL, lending platforms face the challenge of balancing customer acquisition with repayment discipline.

SuperMoney uses payment data, shopping behaviour and SMS insights to assess customers. For borrowers without an established credit history, the platform typically offers an initial limit of around Rs 5,000, according to Sikaria.

POP follows a similar approach, with lenders starting customers at smaller limits and increasing them as they demonstrate consistent repayment behaviour. Errangi said lenders prefer to assess a borrower's repayment record on a Rs 2,000 limit before considering a larger exposure of Rs 20,000.

The platforms also use UPI AutoPay mandates to facilitate repayments. According to Errangi, these mandates help reduce the burden on collections.

However, smaller loan sizes and shorter repayment periods do not eliminate default risk. Customers may still fail to repay their instalments, leaving lenders exposed to credit losses.

Earlier BNPL Players Faced Business and Regulatory Challenges

The earlier wave of BNPL services, led by platforms such as Simpl Pay Later and LazyPay, offered checkout financing across categories including food delivery, quick commerce and travel.

However, the model faced pressure from funding expenses, defaults and limited merchant-fee income. Some players also encountered business disruptions and regulatory scrutiny.

ZestMoney shut down in December 2023 before the DMI Group acquired its platform. In September 2025, the Reserve Bank of India (RBI) directed Simpl to halt payment operations. The company subsequently reduced its workforce.

The RBI has also tightened rules governing digital lending. Its measures include restrictions on loading prepaid payment instruments through credit lines, higher capital requirements for specified unsecured retail exposures and a 5% cap on default-loss guarantees for relevant loan portfolios.

These developments have made compliance, underwriting standards and credit-risk management important considerations for companies seeking to expand short-term digital lending.

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BNPL Growth Depends on Sustainable Lending Economics

The renewed BNPL model is also drawing attention to the economics of consumer credit. According to RBI data cited in the report, consumer durable loans at non-banking financial companies (NBFCs) increased 56.4% year-on-year to Rs 77,784 crore in August.

Anuradha Kumari, chief operating officer of PayU Finance, the NBFC powering POP's pay-in-three offering, said short-duration pay later feature address different consumer needs, including low-value and frequent purchases.

She noted that instalment-based payments can improve affordability and flexibility, particularly for consumers who may not have access to credit cards or conventional equated monthly instalment (EMI) options. For merchants, these facilities can also support checkout conversions by allowing customers to spread purchase costs.

The return of BNPL in India therefore reflects an effort to build a model that connects payments, shopping and lending. While marketplace commissions and customer transaction data may offer platforms additional ways to manage costs and assess borrowers, the long-term viability of these services will depend on repayment performance, responsible credit limits and the ability to control defaults.