BNPL Statistics India 2026: Users, Growth & Market Size
Buy now, pay later (BNPL) in India is estimated to have around 100 million users in 2026 and a market value of roughly 29 billion US dollars, according to figures compiled from Mordor Intelligence and PayNXT360. Those numbers come from private research firms rather than a regulator, so they are estimates and different firms disagree. This article lays out what is known, who says it, and what is changing in how pay-later credit is offered.
Every figure here is attributed to the report that published it. Where sources conflict, we say so rather than picking one.
BNPL in India at a glance
| Metric | Figure | Source |
|---|---|---|
| Market size, 2025 | about 24.86 billion USD | PayNXT360 report, as cited by GrabOn |
| Market size, 2026 | about 29.11 billion USD | PayNXT360 report, as cited by GrabOn |
| Projected size, 2031 | about 53.9 billion USD | PayNXT360 / Mordor Intelligence |
| Projected growth, 2026 to 2031 | about 13.1% CAGR | Mordor Intelligence |
| Estimated users, 2026 | around 100 million | Mordor Intelligence |
| Transaction value, FY2025-26 | about 3.19 trillion rupees | PwC India, as cited by GrabOn |
| Transactions, FY2025-26 | about 2.127 billion | PwC India, as cited by GrabOn |
An earlier press release forecast that India's BNPL user base would grow nearly five-fold from 2022 to pass 100 million by 2027; current estimates suggest the country reached about that level a little earlier.
Users and demographics
Mordor Intelligence estimates 90 to 100 million BNPL users in 2025, rising to about 100 million in 2026. The same research reports that Gen Z made up about 39.4% of users in 2025. Typical transaction limits with BNPL providers range from about 1,500 to 25,000 rupees, and some offer higher limits of up to 1 lakh rupees, according to the compilation cited.
These are modelled estimates. A "user" may mean anyone who has ever activated a pay-later line, not someone who uses it monthly.
What people buy with BNPL
- Consumer electronics is the largest category, at around 35% of the market in 2025 according to Research and Markets and Mordor Intelligence figures.
- Online transactions generated about 82.9% of BNPL revenue in 2025.
- Fashion, travel, food delivery and small-ticket lifestyle purchases follow, though category splits vary by report.
The electronics lead makes sense: BNPL and no-cost EMI are used to break up higher-value purchases into instalments.
Who provides BNPL
Fintech companies held around 64.1% of the market in 2025 according to Mordor Intelligence. Names commonly listed among major providers include LazyPay, Amazon Pay Later, MobiKwik ZIP, HDFC FlexiPay and ICICI PayLater. Banks and NBFCs increasingly sit behind these products, since RBI rules require lending to be done through regulated entities.
The regulatory shift
The industry has changed since RBI tightened rules on prepaid wallets and digital lending. Market commentary in 2026 describes a move away from standalone pay-later wallets toward bank-anchored credit distributed through UPI, including pre-sanctioned credit lines and RuPay credit cards integrated into UPI payments. In practice, that means "pay later" is looking more like a regulated credit line than an unregulated app feature. We recommend reading RBI's digital lending directions directly for the exact rules, since summaries can oversimplify them.
BNPL versus credit card versus EMI
| Feature | BNPL | Credit card | Card or store EMI |
|---|---|---|---|
| Typical use | Small to mid purchases | Everyday spending | Larger purchases |
| Interest-free period | Often short, e.g. a billing cycle | Up to around 50 days on many cards | Depends on offer |
| Credit reporting | Increasingly reported | Reported | Reported |
| Rewards | Rare | Often cashback or points | Sometimes no-cost EMI |
| Late fees | Common and can be steep | Interest plus fees | Fees and possibly interest |
Cards can often replace BNPL and add rewards. If you already hold a cashback card, such as the SBI Cashback Credit Card or the Axis Flipkart credit card, compare it against the BNPL fees before taking pay-later credit.
Risks users should know about
- Overspending: deferred payment makes purchases feel cheaper than they are.
- Late fees: missing the due date can trigger charges and credit score damage.
- Multiple lines: using several BNPL apps makes it hard to track what you owe.
- Credit reporting: many lenders now report to credit bureaus, so defaults can hurt your score.
- Data sharing: read what permissions the app requests.
Tips for using pay-later responsibly
- Use it only for planned purchases you could afford in cash.
- Set a reminder before the due date, or enable auto-pay from a funded account.
- Keep total pay-later dues under a comfortable share of monthly income.
- Prefer regulated lenders and read the fee schedule before activating.
- Check your credit report periodically for dues you forgot.
Frequently asked questions
How many BNPL users are there in India?
Mordor Intelligence estimates around 100 million in 2026. It is an estimate, not a regulator's count.
How big is the Indian BNPL market?
PayNXT360 figures cited by GrabOn put it at about 29.11 billion USD in 2026, growing to about 53.9 billion by 2031. Other research firms publish different numbers.
Is BNPL regulated in India?
Lending must go through RBI-regulated entities, and RBI has issued digital lending directions. Check RBI's site for current rules.
Is BNPL better than a credit card?
It depends. Cards often offer rewards and longer grace periods; BNPL can be easier to obtain for small purchases.
Does BNPL affect my credit score?
It can. Missed payments may be reported to credit bureaus.
Conclusion
BNPL in India is large, at around 100 million users by current estimates, and is maturing from app-based wallets toward regulated, bank-backed credit on UPI. Treat market-size numbers as directional, since research firms differ, and treat pay-later like any other loan: use it deliberately and repay on time.