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Unlock Shopping Freedom: Top 10 BNPL Apps in India for Flexible Payments

Buy Now Pay Later is an excellent credit solution providing much-needed financial escape during hard times. Access to reasonable credit is crucial because everyone can experience a monetary crisis at any time in their lives.

What Is Buy Now Pay Later?

As the name suggests, BNPL is a method of purchasing goods without paying cash at the time of purchase. While making the transaction, you actually spend money, just not from your own money. You are paid for by the BNPL firm you registered with to use this financing service.

However, a time is given to repay the obtained money once the firm pays for you. Utilizing this kind of service is the same as taking out a loan that you pay back without any additional fees. You could even make the repayments in the form of monthly EMIs.

If you return the money on time, everything is well and good. The BNPL firm has all the rights to add penalty charges if you don't repay within the specified time. Further delays could hamper your CIBIL score as well.

How Does Buy Now Pay Later Work?

Several e-commerce sites now provide the opportunity to buy now and pay later. On all of them, it functions the same; the only variation appears in the terms and conditions.

How, then, does BNPL really work?

  • Buy a chosen item or items from an online store.
  • Select the "buy now, pay later" option while checking out.
  • A modest fee must be paid at the time of buying.
  • No interest or other expenses are applied; you must pay the balance in a series of repayments.

BNPL payments are projected to increase by 22.9% yearly, surpassing the market cap of US$14,289.4 million in 2023.

India's BNPL payment sector has experienced rapid growth over the past four quarters, driven by rising e-commerce penetration.

The Indian BNPL industry's medium- to long-term growth trajectory is still promising. BNPL payments are projected to increase significantly during the projection period, with a CAGR of 12.2% between 2023 and 2028. By 2028, India's BNPL Gross Merchandise Value, US$11,628.8 million in 2022, will be US$25,387.2 million.

Consumers in India's Tier II and Tier III cities increasingly prefer flexible payment options, so the buy now pay later market has grown tremendously. This phenomenon will increase substantially in the following three to four years. Consumers of every age and socioeconomic class have found the payment option helpful and beneficial, and numerous individuals in the nation now use it as their go-to payment method.

Consumer BNPL spending is predicted to rise strongly in Q4 2022 despite newly introduced regulatory barriers, mostly due to the year-end festive and holiday season. As buyers opt for flexible payment choices in response to mounting inflation and cost of living, the payment mechanism is anticipated to boost its market share in both the online and offline markets.

BNPL services are in extremely high demand among fintech companies for online and offline payments.

The business activities of BNPL companies in India have been seriously affected by many new regulations that the Reserve Bank of India announced. The BNPL market is predicted to expand rapidly in Q4 2022 despite regulatory hurdles due to the increased demand from customers and retailers.

Among the various BNPL companies, LazyPay, ZestMoney, and KreditBee saw strong demand for their products and services in Q4 2022. Customers are increasingly using the BNPL payment option to pay for their festive-related buys, which has boosted volume in the nation. Compared to the holiday season in 2021, KreditBee's loan distributions jumped by over 100% in 2022. Customers in Tier II and III cities nationwide accounted for most of the demand for BNPL solutions.

Demand isn't just limited to online payments, though. One of the top fintech companies in the nation, Pine Labs, has seen a sharp increase in the adoption of BNPL services for offline purchases. The company predicted that in October 2022, BNPL transactions would total INR 50 billion; there has been a 100% rise. 

The company additionally partnered with 100,000 retail outlets for BNPL services in October 2022, hoping to take advantage of the rising BNPL demand in the nation. Pine Labs plans to penetrate into Tier III and IV cities throughout India in the short to medium term.

The demand for BNPL has continued to rise in India despite the central bank's increasing scrutiny of the payment method, and financial forecasters predict the trend to keep growing over the following three to four years. Rising inflation and living expenses would further aid consumer adoption in India. And with this rising adoption, there will be a huge demand for BNPL apps in India.


There are many Buy Now Pay Later options available in India. They provide qualified clients with a maximum of Rs. 5 lakhs low-interest loans. Your credit score determines your credit limit and interest rates, and anyone with a good credit report score can obtain a good credit limit immediately. The interest rates for these financial loans are low and deducted daily. Consequently, you can reduce your interest costs as you make consistent repayments. 

In today's article, we'll talk about six of the most popular and best buy-now-pay-later apps in India that provide users with a variety of credit solutions as well as additional benefits. 

Let's now analyse the best BNPL applications available in India. 

#1 Settle 

settle is a BNPL platform that offers lightning-fast credit approval in a few simple steps, enabling users to meet their financial needs for essential to expensive purchases.

  • Create an account in a few minutes, and your credit limit will immediately be approved.
  • Lightening-fast KYC.
  • No complex procedures, all transactions are in one place, and rapid one-tap payouts.
  • Buy products offline or online without a credit card.
  • A comprehensive solution to all of your loan-related issues.
  • Payment in part or in full is not subject to penalty.
  • Get affordable bite-sized instalments of your bill.
  • In-app special discounts are tailor-made exclusively for users.
  • There are no additional charges, and everything is completely transparent.

#2 Simpl

One of the easiest Buy Now Pay Later lending applications available is Simpl. This app offers an easy two-step account activation procedure and gives the user an outstanding limit on credit. Your credit limit will be shown on your Simpl app shortly after providing some basic information. Look below for Simple BNPL.

  • Simpl launched in the year 2015.
  • Start shopping by linking your Simple app to thousands of nearby stores and businesses.
  • For your shopping, obtain a loan of as much as Rs. 4 lacks.
  • Thanks to a Simpl app, you can make all your purchases online with just one click.
  • Repay your loan quickly with two monthly billing cycles. Additionally, pick EMIs spanning between three months and eighteen months.
  • In this app, there are no additional costs or hidden charges.
  • A loan plan enables persons with bad credit to get loans because it is not crucial to your credit score.

#3 Zest Money

Zest Money is by far one of the most often used BNPL applications among consumers online. They provide loans with limits of up to Rs. 2 lacks and deal with approximately 1.5 lakh retailers in India. 

Here are a few reasons why people like ZestMoney BNPL.

  • ZestMoney was launched in the year 2015.
  • partnership with more than 150,000 retailers to deliver the finest products to you
  • Get 0% EMI on your purchases when you use ZestMoney.
  • Conveniently repay in 3–4 months.

#4 Amazon Pay Later

In this modern internet era, Amazon Pay Later is frequently used by most Indians. Pay attention to the following points when using Amazon Pay Later.

  • Amazon Pay Later launched in the year 2018.
  • EMI payments are easy and hassle-free on all eligible purchases made through the Amazon App and website.
  • Repayment terms range from 3 to 12 months.
  • Manage your account using an entirely separate interface to track payments, transaction history, limits, and other statistics.
  • No credit check is necessary. Your bank account decides your credit limit.
  • Processing and cancellation fees are not charged.
  • No fees are charged for pre-closures of loans.

#5 LazyPay

Due to its ability to enable clients to pay at merchant locations via UPI, LazyPay is more favoured and frequently used by consumers.

  • LazyPay launched in 2017.
  • You can make purchases offline as well as online using the smartphone app.
  • Choose an EMI of 3, 6, or 9 months, or pay in full within 15 days.
  • LazyPay is recognised by numerous well-known retailers, including Zomato, Dunzo, Tata Sky, MakeMyTrip, GoIBIBO, and BB Instant.
  • Only PAN and Aadhaar information is required for the paperwork.
  • There aren't any interest fees or other costs when you repay on time. 

#6 Flipkart Pay Later

In India, an established BNPL app is Flipkart Pay Later. Users can buy things online and offline without paying a down payment, and all they have to do is pay for the products in the following 30 days. Committed customers of the app can receive quick credit from Flipkart Pay Later. Millions of people have already signed up for this programme, and new ones are enrolled monthly.

  • Flipkart Pay Later was introduced by Flipkart in 2017.
  • Receive credit limits of up to Rs. 1 lakh instantaneously.
  • Get authorised in less than 30 seconds.
  • No additional interest is charged for payments made within 35 days.
  • Single Cumulative bill for several purchases.
  • You can use the "Try Now, Pay Later" option on a few products and pay once you've received and used the item. 

#7 MoneyTap

MoneyTap, the innovative Buy Now, Pay Later (BNPL) app, has gained significant popularity since its launch in 2016. With a rapidly growing market size and millions of downloads, it has become a go-to choice for many users seeking convenient and flexible credit options.

  • MoneyTap offers a personal credit line that can be accessed instantly through a mobile app.
  • There is no need for collateral for the loan.
  • Users need to download the app, complete the registration process, and submit the required documents for verification.
  • Users can choose from multiple repayment options, including monthly instalments or minimum payments, giving them greater control over their finances.
  • Individuals with good credit scores can enjoy lower interest rates, making it an attractive option for responsible borrowers.
  • Late or missed payments may incur additional charges and negatively impact the credit score.

#8 Sezzle

Sezzle, the Buy Now, Pay Later (BNPL) app, has been making waves since its launch. With its debut in 2016, it quickly captured a significant market size and witnessed a download surge, solidifying its popularity among users.

  • It offers a seamless, interest-free instalment payment solution, allowing users to split their purchases into manageable instalments without incurring additional charges.
  • It has a network of more than 10,000 online stores.
  • Users must simply sign up, complete the verification process, and link their payment method.
  • Sezzle offers a transparent payment schedule outlining the instalment amounts and due dates.
  • Late or missed payments can result in penalties, affecting the user's credit score and potentially incurring additional fees.

#9 FreeCharge

FreeCharge, the Buy Now, Pay Later (BNPL) app, has redefined the shopping experience since its launch. The FreeCharge app was introduced in 2010. With its strong market presence, widespread downloads, and growing popularity, FreeCharge has become a trusted name among users.

  • What sets FreeCharge apart from other BNPL apps is its seamless integration with its digital wallet functionality.
  • Any interest you pay is returned to you as Freecharge cashback, which you can use to cover your next bill.
  • Getting approved for FreeCharge's BNPL feature is straightforward. Users must download the app, sign up, and complete the verification process.
  • They can opt for full payment or split their purchases into convenient instalments based on their financial preferences and requirements.
  • Speaking about cons, not all merchants may accept FreeCharge as a payment option, limiting its usability in certain cases.

#10 PostPe

PostPe, the Buy Now, Pay Later (BNPL) app, has revolutionized the shopping experience since its launch. PostPe was launched in 2021 and has gained popularity among users due to its unique features and offerings.

  • It aims to support local economies by providing customers with flexible payment options while shopping from their favourite neighbourhood stores.
  • Getting approved for PostPe is a simple process. Users need to download the app, sign up, and complete the verification process.
  • Users can utilize PostPe cards for online as well as in-store purchases.
  • The flexible repayment option lets users plan their finances effectively and avoid late payment penalties.
  • Interest rates on PostPe may vary depending on factors such as creditworthiness and the specific terms and conditions of the app.

Cons of Buy Now, Pay Later

However, BNPL, with its several benefits, has some shortcomings, too; thus, it could be worthwhile to look at alternatives.

Two out of every three users of BNPL solutions, according to the 2021 LendingTree survey report, felt that using BNPL apps led to their overspending while shopping. 42% of customers, according to a recent survey held by LendingTree, have fallen behind on at least one payment and, as a result, have been assessed an extra charge or interest, raising their total costs for borrowing.

Additionally, it may be challenging to build a good credit score because some BNPL apps impose convenience charges for each instalment, while other apps may not disclose your payments to credit rating agencies. So choosing the right BNPL apps for your purchases is crucial.

Methodology for Selecting the BNPL Apps

1. Low account maintenance fee

The majority of BNPL apps charge a small fee for account maintenance, and this cost is billed on a monthly basis. Exceptionally reasonable late fines are imposed. Because of this particular characteristic, most individuals can afford to use such apps.

BNPL apps include this feature in consideration of the fact that the majority of its customers are school students or undergraduates. Even better, few BNPL apps don't even demand fees for maintaining the account.

2. The spending limit

As can be seen, most BNPL apps are only available for smaller purchases. You have a lower probability of getting stuck in a debt trap as a result, and the last thing you want when using BNPL apps is to lose money.

3. Transparency

Hidden fees are typical characteristics of credit cards. Being in debt is the last thing someone still learning the credit system wants.

As a result, BNPL is favoured by the majority of people. There are no unknown fees, and you only have to pay EMIs. Millennials and Gen Z value transparency and the absence of extra fees.

4. Safer transactions

What will you pay the greatest attention to when making a payment? A secure and reliable system for making payments, BNPL offer an encrypted environment for secure payments. Therefore, you can make your transactions without any concerns.

5. User-friendly

Most people are perplexed by how a FinTech app operates. Honestly, It is incredibly annoying. You are spared from such annoyance by BNPL apps! These apps are comparatively simple to use. If you're still unclear, some BNPL apps have extremely user-friendly UI with tons of financial blogs to assist the clientele.

6. Quick clearance

Isn't it annoying when a quick verification procedure takes an absurdly long time? We are aware of that, as are BNPL apps. As a result, verification in most of the BNPL apps happens very quickly. You don't need to squander your valuable time, and customers value the rapid process.

7. Accessibility

Although BNPL is not recognized everywhere, it may be accepted in the majority of shops worldwide. The availability of these apps is not a problem. Users can shop now and pay later on most online shopping websites and apps. Visit any online seller, and there's a good chance you'll see the BNPL option.

8. Refunds

According to several studies, most consumers use the BNPL option to make multiple purchases in a single transaction. Typically, they fully intend to return some of the items, and therefore, some BNPL apps provide a hassle-free refund procedure. An impressive feature, right?

9. Flexible repayments

Customers like having control over their loan repayment options. Clients of BNPL apps can choose how they want to make repayments. They provide customers with sufficient freedom when it comes to repayments. Customers have greater control over their money thanks to this flexibility.

10. Credit history is not necessary.

You must have a credit history to apply for a standard credit card. However, if you obtain a credit card without having any credit record, you will be burdened with a higher interest rate. You don't have to have a credit history to use BNPL services; therefore, your obtained loans have no exorbitant interest rates.

11. Quick Payment

Some payment options subject users to a tedious transaction experience. However, some BNPL apps provide a relatively quick way of payment, and most customers appreciate a fast payment process.

12. Simple account management 

BNPL apps are more popular with users, making it simpler for customers to handle their accounts and manage their finances. Customers can view all of their financial details at once through BNPL apps and get immediate access to details about their transactions, payments, settlements and personal information.

13. No papers are required

The fact that everything is stored digitally on BNPL apps is one of their most significant advantages. No offline papers must be produced by customers. The entire loan application and approval procedure occurs online, and the paperless approach is now the most widely accepted practice.

14. Referrals

Some BNPL apps include referral schemes to current users. Users receive additional rewards from these referral schemes. Users might suggest a BNPL app to relatives or friends, for instance. The users receive benefits when their mentioned friends make transactions on the app. Isn't it a fantastic scheme?

15. Notifications

Great BNPL apps take care to give their consumers a sense of security. There are several methods for BNPL apps to express their gratitude to their subscribers; notifications stand out as one such method. These apps make sure to alert customers to repayment due dates, and customers can avoid paying late charges with this feature.

When to Use a Buy Now, Pay Later App vs a Credit Card?

You want to purchase a 20000 rupees smartphone, and the seller offers you a BNPL loan while checking out. If accepted, BNPL loans usually ask for an initial down payment, typically 25% of the total purchase price. The needed upfront deposit is calculated by multiplying the sum by 0.25. For instance, the BNPL plan would demand a 5000 rupees deposit for that 20000 smartphones.

The balance of 15000 rupees has to be repaid in recurring payments, usually in the form of EMIs. For instance, during the following three weeks, your credit or debit card might be debited with the remaining three payments of 5000 rupees each.

BNPL loan plans have a high rate of acceptance. 69% of loan applicants between the age range of 18 and 24 are authorised for BNPL financing, says CFPB. If you've had difficulties obtaining approval for a conventional credit card owing to a low CIBIL score, or a short credit record, you may be a good candidate for one of these loans.

Many consumers struggle to be authorised for credit cards than BNPL financing. If you're below 21, your capacity to pay off the loan and your credit score may influence your approval. The fact that Gen Z has the weakest CIBIL scores of any generation might be the reason for their minimal credit card usage.

If you're older than 18 and have no prior credit record, you should consider getting a secured credit card, which can teach you how to handle a credit card and help you establish an excellent credit score through timely payments. A student credit card with simpler qualification criteria but typically has a lower credit limit is another option if you're still in school.

You are not required to pay interest if you use a credit card and repay the balance monthly. If not, the part of the balance you failed to pay will be subject to interest the following month.

The amount you can obtain with a buy-now, pay-later platform is typically less than what you might get with a traditional credit card because they usually have short-term, interest-free payback plans. However, BNPL offerings also provide longer-term finance solutions with interest for higher sums.

According to a Harvard Business School study, among low-income (those making BNPL users, 20% incurred overdraft penalties and 17% paid low-balance fines. Therefore be mindful of the expenses if you're utilising BNPL plans to finance your purchases.

The vast majority of BNPL plans just conduct a mild investigation to determine whether to grant you the loan. If you're trying to build good credit, be aware that most BNPL businesses don't consistently or not submit transaction reports to credit agencies. However, certain BNPL companies may report you to credit authorities if you make delayed payments or fail to repay the loan. Your credit rating can decline.

On the contrary, a rigorous investigation will be made when you initially enrol for a credit card. Then, they give information to credit monitoring agencies about the loan and repayment. Your credit score can increase if you make your credit card payments on time and keep your overall debt to a minimum. However, late payments and high credit card obligations might lower your credit rating.


Getting a loan can sometimes be your only choice when you're short on money. However, obtaining a loan requires paying interest and making repayments. At that point, consider using buy now, pay later, a convenient approach for obtaining finances without making repayments for a predetermined amount of time.

When you need additional funds, BNPL can help simplify your life with reasonable interest rates and flexible repayment plans. You won't need to be concerned about BNPL becoming a long-term burden because it is a short-term loan. Additionally, it is simpler to fulfil the credit score requirements than for a conventional or standard loan.

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