‘Buy now pay later’ (BNPL) consumers in India are a younger set of borrowers who avail short-term credit. BNPL players account for a low share within the new-to-credit customer base, and delinquency rates are high.

The companies are exploring various business models to establish economic viability with limited revenue drivers.

In fact, BNPL will serve as a funnel to credit cards for many customers, and credit-card companies will benefit as they will be able to acquire credit-tested customers.