What should a merchant check before enabling pay later at checkout?

Confirm who the regulated lender is and how refunds, cancellations, and chargebacks are handled. Ask for clear fee tables and escalation paths for disputes.

How do RBI actions usually change pay later product design in India?

Providers tend to reduce ambiguity by strengthening disclosures, tightening KYC, and avoiding structures that resemble unlicensed payment flows. Many also shift users toward more standard EMI or bank issued credit rails.

What are the most common operational failure points in pay later programs?

Refund reversals, partial returns, and delayed statement generation create the highest complaint volume. Weak customer support during billing cycles can quickly damage repeat usage.

How can buyers compare fintech led versus bank led pay later options?

Fintech led options may optimize conversion and onboarding speed, while bank led options often offer stronger compliance routines and complaint handling. Compare approval rates, repayment flexibility, and how fast limits can be adjusted.

What early warning signs indicate a pay later partner may pull back?

Sudden tightening of limits, reduced merchant coverage, slower approvals, and changes in partner bank appetite are common signals. Rising delinquencies in short tenor products also tends to trigger rapid policy shifts.

What is a practical way to manage customer impact if a pay later product is discontinued?

Provide a clear final transaction date, a stable repayment path, and regular statements until closure. Ensure bureau reporting is accurate and give customers a documented grievance channel for disputes.

Top India Buy Now Pay Later Services Companies

Paytm Postpaid

2025 restart of credit line on UPI changes Paytm Postpaid's product story and risk posture. The platform is a major player benefiting from broad merchant acceptance, yet underwriting and collections discipline still shape outcomes more than app reach. In 2024, Paytm publicly signaled a pause in postpaid disbursals amid small ticket credit stress, which highlights downside risk if delinquencies rise again. If RBI scrutiny tightens on frictionless credit flows, Paytm can lean on partner bank rails and stronger disclosures, but it must protect trust while scaling.

Leaders

LazyPay

Credit performance optics improved as PayU described a narrower loss profile in its credit business during 2025. LazyPay remains a leading service provider for app based deferred payments, with a clear path to defend volumes through tighter KYC and shorter exposure windows. If funding conditions worsen, the model can shift faster toward EMI like products and fewer risk segments. The key weakness is reliance on partner risk appetite and cost of funds, which can compress unit economics quickly when regulators raise expectations on unsecured credit.

Leaders

Amazon Pay Later

Amazon's completion of the Axio acquisition in September 2025 strengthens control over underwriting and checkout finance execution in India. As a top player, it can pair high frequency commerce data with more predictable credit delivery, which typically improves approval accuracy and fraud defenses. Axio's lending scale signals operational depth for this strategy. If RBI approvals slow new product launches, Amazon can still compound advantage by improving conversion rates and repayment journeys. The main risk is concentration around platform behavior and regulatory expectations for transparency.

Leaders

Flipkart Pay Later

RBI approval for Flipkart's NBFC arm in 2025 supports a shift from partner led credit to more direct control over product design. This major player can blend strong merchant demand with first party risk policies, which often improves unit economics over time. Flipkart plans to broaden lending offers, with BNPL positioned as part of that portfolio. If credit quality worsens in specific cohorts, Flipkart can tighten limits quickly, but it must avoid over correcting and hurting conversion on big sale events.

Leaders

Capital Float (Axio)

Axio's acquisition close in 2025 gives the platform stronger distribution leverage while keeping an NBFC backbone. As a top manufacturer of checkout finance, it can improve approvals and fraud detection by using ecommerce signals, but it must show consistent borrower outcomes to preserve regulator comfort. If Amazon expands lending beyond checkout, Axio becomes more operationally important as the system of record for credit decisions. The critical risk is concentration on one ecosystem, since shifts in partner strategy can rapidly change volumes, staffing needs, and collections load.

Leaders

Bajaj Finserv

Offline acceptance remains Bajaj Finserv's advantage when consumers want predictable EMIs at the point of purchase. This leading producer benefits from strong partner coverage in electronics and durable categories, with processes built for repeat borrowers. If regulators push for stronger fee transparency, Bajaj can absorb the change through standardized disclosures and mature servicing. The key opportunity is expanding pay later flows into smaller merchants, though the operational risk is sales driven mis selling complaints that can trigger remediation costs and partner friction.

Leaders

Simpl

Regulatory enforcement became the defining constraint after RBI ordered Simpl to halt payment operations in September 2025. The company had built value through low friction checkout and broad merchant coverage and remains a leading vendor, but the immediate risk is operational interruption that erodes merchant confidence. If Simpl reenters with a more tightly licensed structure, it can rebuild on its merchant relationships, yet growth will likely be slower and more compliance led. One realistic upside case is a pivot to collections and credit servicing, while the downside is prolonged customer churn and partner exits.

Established

MobiKwik ZIP

Visible retreat from classic BNPL reduces the forward growth runway for MobiKwik ZIP in its prior form. This major distributor still has a wide user base in payments, yet the credit proposition is now more constrained by partner appetite and product redesign. If consumer delinquencies tick up, MobiKwik can protect outcomes by steering users toward longer tenure EMI products and stricter eligibility. The weakness is that reduced short tenor usage may lower everyday relevance, which can slowly dilute repeat engagement even when the payments app remains sticky.

Established

ICICI PayLater

Discontinuation in May 2025 reshaped ICICI PayLater from a growth product into a managed run off book. This major brand still benefits from trust in banking rails, yet the execution priority is clean statements, predictable repayment, and smooth closure for users. The service was ended across customers, which highlights internal policy risk for bank led pay later features. If ICICI reintroduces a similar offering later, it will likely be rebuilt with stricter controls, but it must overcome customer skepticism from the prior stop.

Established

Slice

2025 push into RuPay linked credit products strengthens Slice's positioning around UPI native credit usage. This major player has a credible innovation angle because UPI behavior can drive high frequency, small ticket usage with clearer repayment cycles. If regulators constrain prepaid like workarounds, Slice's bank aligned path can reduce compliance risk, but it must maintain tight controls on onboarding and dispute resolution. The upside is strong product stickiness among younger users, while the weakness is execution complexity across bank systems, customer service, and bureau reporting.

Performers

KreditBee

2025 step toward becoming a public limited company suggests KreditBee is preparing for tighter governance and future fundraising options. This key supplier can participate in pay later like journeys through small ticket consumer credit, yet it must keep defaults contained as RBI attention remains high on unsecured lending quality. If underwriting improves using better bank data rails, KreditBee can push more approvals in tier two and tier three cities. The downside case is higher delinquencies that force rapid tightening and lower conversion at merchants and partner apps.

Performers

Kotak Mahindra

The bank's RuPay credit card linkage to UPI supports pay later style usage at merchants without a separate BNPL app. This bank led provider benefits from strong compliance muscle, and RBI lifting onboarding and card issuance restrictions in 2025 reduces a prior growth constraint. If UPI credit usage grows faster than POS card usage, Kotak can gain transaction frequency, though it must keep dispute handling fast to protect trust. The key risk is technology downtime and integration stability across UPI apps during peak events.

Performers

HDFC FlexiPay

Debit card linked pay later positioning creates a low friction entry point for users without credit cards. As a major brand, HDFC can scale responsibly by keeping limits small and terms clear, which fits RBI's direction on consumer protection. If delinquencies rise in short tenor credit, the bank can tighten eligibility with minimal brand damage, but conversion may drop in discretionary categories. The upside is broad acceptance where FlexiPay shows up at checkout, while the operational risk is merchant side confusion on refunds and cancellations that can inflate call center load.

Performers

ZestMoney

The shutdown decision in December 2023 ended ZestMoney's ability to compete on new originations. The former top manufacturer of checkout EMI tools had reported heavy losses for FY23, which framed the sustainability challenge before wind down. If the technology stack is reused by an acquirer, some capabilities could reappear inside a regulated lender, but the original brand is unlikely to regain trust quickly. The critical risk is customer servicing through closure, since any billing friction can create complaints and reputational spillover.

Aspirants

ePayLater

Working capital style pay later for small merchants is the differentiator that keeps ePayLater relevant in India. This key supplier wins when suppliers and distributors accept a digital credit card like workflow, but the model is sensitive to fraud and invoice disputes. If data privacy norms tighten further, ePayLater may need more explicit consent flows, which could slow onboarding. The upside is deeper penetration in repeat purchase categories, while the main weakness is operational cost to manage repayment and disputes at scale.

Aspirants

OlaMoney Postpaid

2024 shift toward small PPI wallet positioning signals a narrower operating lane for OlaMoney's wallet stack. As a wallet linked offering, OlaMoney Postpaid's near term story depends on how much credit functionality can be embedded without triggering licensing pressure. If ride hailing volumes soften, the credit use case can weaken since many users first meet the product inside daily mobility payments. The most material risk is compliance driven product freezes, which can interrupt billing and erode customer trust even when the core brand remains visible.

Aspirants

Flexmoney

Checkout enablement for lenders is the core bet for Flexmoney, rather than owning a consumer brand. This key participant can benefit when banks want instant approvals at merchant checkout, including cardless EMI flows. If RBI scrutiny increases on opaque fees, lender partners will demand clearer disclosures and standardized repayment journeys, which Flexmoney can productize across merchants. The risk is dependency on partner integrations, since one lender pause can reduce transaction coverage quickly. One realistic upside is winning more embedded high ticket categories where approval speed is valuable.

Aspirants

MoneyTap

Clearer financial signal emerged when Freo narrowed FY24 losses, and described that it provides credit under the MoneyTap name. This app led provider can still defend relevance through flexible credit lines that resemble pay later use cases for bill like purchases. If bank funding tightens again, the platform's ability to control underwriting and collections will matter more than growth. The main strength is product flexibility, while the key risk is that consumer trust can erode quickly if credit reporting and grievance handling feel slow.

Aspirants

Paytail

Merchant side adoption is the make or break lever for Paytail's offline EMI style proposition. This key participant can win with a simple merchant onboarding story, but it likely faces pressure from better funded lender networks and large platform players. If consumer demand shifts toward credit line on UPI instead of store led EMI, Paytail must adapt its checkout flow and lender integrations. The main risk is uneven service quality at retail counters, where billing disputes can quickly damage trust. One reasonable upside is deeper penetration in specific retail chains where training and controls are easier.

Aspirants

Uni Cards

Product positioning leans toward rewards led credit usage, including UPI enabled spending on a co branded card. As a bank partnered program, Uni Cards can convert pay later intent into revolving credit with transparent statements, which may satisfy regulators more easily than wallet like constructs. If bank partners change priorities, Uni must manage migrations carefully to avoid customer disruption. The strength is a differentiated rewards narrative, while the weakness is dependence on partner issuing and servicing standards. One plausible what if is expansion into installment controls inside the app, which could lift usage.

Aspirants

India Buy Now Pay Later Services Companies: Leaders, Top & Emerging Players and Strategic Moves

Top 5 India Buy Now Pay Later Services Companies

India Buy Now Pay Later Services Companies Matrix by Mordor Intelligence

MI Competitive Matrix for India Buy Now Pay Later Services

Analysis of India Buy Now Pay Later Services Companies and Quadrants in the MI Competitive Matrix

Paytm Postpaid

LazyPay

Amazon Pay Later

Flipkart Pay Later

Capital Float (Axio)

Bajaj Finserv

Simpl

MobiKwik ZIP

ICICI PayLater

Slice

KreditBee

Kotak Mahindra

HDFC FlexiPay

ZestMoney

ePayLater

OlaMoney Postpaid

Flexmoney

MoneyTap

Paytail

Uni Cards

Frequently Asked Questions

Methodology

Analysis of Leading India Buy Now Pay Later Services Companies