A study released by researchers found that 60% of respondents in India's Tier‑2 cities had used buy‑now, pay‑later (BNPL) services, compared with 45% in metros and 52% in Tier‑3 cities.
The data, collected from urban households across cities like Pune, Hyderabad and Ahmedabad, indicates that BNPL adoption is highest in Tier‑2 hubs where digital payment habits are deeply embedded. It also highlights that 64% of urban respondents never formally applied for digital credit through an app.
Despite rising checkout financing, the gap between informal BNPL use and formal credit remains wide, suggesting users may be exposed to less transparent terms and lower regulatory oversight.
The survey's respondents, many of whom are young professionals, rely on BNPL for everyday purchases, underscoring a shift in how consumers manage short‑term debt.
The study's findings will inform upcoming policy reviews on digital credit regulation, as regulators consider tightening oversight of BNPL operators.