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Tier-2 cities lead BNPL adoption: 60% of respondents have used it, versus 45% in metros

Our read

BNPL growth is likely to be led by Tier-2 cities over the next few quarters, with metros lagging until embedded checkout credit reaches the urban shoppers who have never applied.

For operators

Tier-2 shoppers lead BNPL use at 60%, against 52% in Tier-3 and 45% in metros, so retailers and platforms should prioritise pay-later options at checkout in Tier-2 cities before the metros.

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Tier-2 BNPL usage above the 60% reported, in the study's next wave, would mean adoption is still deepening and lenders' Tier-2 push is paying off.

The report,

Buy Now, Pay Later (BNPL) use stood at 52% among respondents in Tier-3 cities, while 64% of urban respondents have never formally applied for digital credit through an app. The study points to a gap between checkout financing and formal digital borrowing.

Share of respondents who have used BNPL, by city type
  • Tier-2 cities60%
  • Tier-3 cities52%
  • Metros45%

07:30 IST · 10 moves · what each means · free

What it means for online and offline

BNPL usage is highest in Tier-2 cities (60%, versus 45% in metros), which points to credit-linked commerce growth outside the metros, though this is a survey and 64% of urban respondents have never formally applied for digital credit via an app.

Signals to track

  • Metro BNPL usage moving above the 45% reported
  • Share of urban respondents who have never applied for digital credit falling below 64%
  • Tier-3 usage closing in on Tier-2 from the 52% reported
  • New RBI rules or enforcement on digital lending or BNPL products

The source

Source Read the source at Times of India

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