Razorpay-backed POP launches POPchop, a three-month interest-free BNPL option
POP is extending its UPI, rewards and commerce platform into credit with POPchop, initially offered on POPShop through PayU Finance India and LazyPay. The limited rollout accounts for 10–12% of POPShop orders, with more lending partners planned.
What happened
Razorpay-backed POP launched POPchop, a three-month interest-free BNPL option for POPShop purchases, extending its UPI, rewards and commerce platform into
Key facts
- POPchop splits purchases into 3 interest-free monthly payments
- POPchop accounts for 10-12% of POPShop orders in limited rollout
- More than 50% of early users are first-time formal-credit users
- India's retail-credit access rose to 74% in March 2026 from 35% in March 2017
- Consumer durable loans were 46% of first-time consumption-loan originations; personal loans 18%
- Credit cards' share of unsecured credit fell to 38% in 2026 from 56% in 2016
- 60% of early POPchop users returned to order the following month
- 94% UPI retention among POPchop users
- Razorpay invested $30 million (about ₹259 crore) for a majority stake in POP in June 2025
Why this matters
POP’s early traction makes it a potential distribution partner for lenders, merchants and rewards platforms seeking access to an engaged UPI-commerce audience, while its planned multi-lender model could create partnership openings.
What to watch
- POPchop order share rising above the initial 10–12% rollout level.
- Repeat-order rate holding near or above 60% after controlling for promotional cohorts.
- Disclosed approval rates, average order value, repayment performance and delinquency indicators.
- Announcement of new NBFC, bank or lending-platform partnerships beyond PayU Finance India and LazyPay.
- Expansion from POPShop to external merchant checkout, offline merchants or higher-ticket categories.
- Any RBI or consumer-protection action affecting BNPL, digital lending disclosures, credit reporting or first-loss arrangements.
- Evidence that interest-free installment subsidies materially compress POP or merchant unit economics.
- Add additional regulated lending partners to increase approval rates and credit-line capacity.
- Expand POPchop eligibility beyond the current 10–12% of POPShop orders using transaction-history and repayment-based underwriting.
- Target high-repeat categories, merchant-funded discounts and personalized installment offers to raise conversion without bearing all subsidy costs.
- Use repayment behavior to segment users into higher-value rewards, merchant offers and eventually longer-tenor credit products.
- Push POPchop into partner merchant checkout flows if POPShop cohort economics remain positive.