Business · Companies · 8 hrs ago
Indian payment apps revive buy now, pay later with small shopping loans
Indian payment apps SuperMoney and POP are bringing back buy now, pay later for shoppers buying items such as sneakers, skincare and gadgets in instalments.
The services target young, often first-time borrowers, and keep purchases relatively small.
Unlike earlier BNPL providers that mainly offered credit at other companies’ checkouts, these apps also run shopping platforms and earn commissions from brands.
They aim to use UPI payments and repayment records to build relationships with customers and assess them for larger loans.
SuperMoney says its festive-season purchase value rose about sixfold from pre-festive levels, while POP says credit-funded purchases made up 40% of orders within four months of launch.
But instalments do not remove the risk that borrowers will miss payments, and earlier BNPL businesses faced failures and regulatory action in India.
Whether the model can grow without costly loan losses remains uncertain.
Indian payment apps SuperMoney and POP are reviving buy now, pay later through small loans for shopping purchases.
The apps target young, often first-time borrowers buying items such as clothing, skincare products and gadgets in instalments.
They combine shopping and credit on their own platforms, where brand commissions can help cover financing costs and credit losses.
The companies say their products are gaining traction, but missed repayments remain a risk.
- Who
- Flipkart-backed SuperMoney and Razorpay-backed POP are offering the loans.
- What
- They are letting customers split shopping purchases into instalments or use small revolving credit lines.
- When
- SuperMoney launched its splitStore product in August; POP’s launch date is not stated.
- Where
- India.
- Why
- The apps aim to attract customers through payments and shopping, then use repayment behaviour to assess them for larger loans. Brand commissions also provide revenue.
This story does not have two clearly opposing sides.
SuperMoney launched its splitStore product, which requires an upfront instalment followed by two monthly instalments.
POP added more than 200 brands, according to its founder.
SuperMoney said its daily purchase-value run rate was about six times its pre-festive level, while orders were four times higher.
- Companies
- SuperMoney and POP
- SuperMoney instalments
- First payment upfront; two remaining payments over the next two months
- SuperMoney median order value
- ₹2,000, up from ₹890 two months earlier
- SuperMoney shoppers
- About 65% were younger than 25
- POP brand commissions
- 20–25% per sale, according to its founder
- POP credit-funded orders
- 40% within four months of launch, compared with less than 10% earlier
What people are saying
The customer seeking credit is increasingly a young shopper buying shoes, apparel or protein supplements, rather than financing higher-priced goods such as smartphones or televisions.
We keep ticket sizes small.
The upfront payment reduces risk, while the short repayment period helps avoid overburdening borrowers.
We launched splitStore just two months ago, and it has already crossed $100 million in annual recurring revenue.