2026 |
Volume 11 |
Issue Issue 1
Evaluating the Role of Buy Now, Pay Later in India’s Digital Payment Ecosystem
1.
Banani Das
– Student of Bachelor of Business Management Studies, Department of Management Studies, St. Xavier’s College (Autonomous), Kolkata, West Bengal, India.
2.
Diptangee Sarkar
– Student of Bachelor of Business Management Studies, Department of Management Studies, St. Xavier’s College (Autonomous), Kolkata, West Bengal, India.
3.
Kaushik Goswami
– Faculty of Computer Science, Post-Graduate and Research Department of Computer Science, St. Xavier’s College (Autonomous), Kolkata, West Bengal, India.
4.
Sayantani Sur
– Faculty of Information Technology, Post-Graduate and Research Department of Commerce (Morning), St. Xavier’s College (Autonomous), Kolkata, West Bengal, India.
Received
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Accepted
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Published
25-Mar-2026
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Abstract
This study examines the rapid growth and emerging significance of Buy Now Pay Later (BNPL) as an alternative payment system in India’s expanding e-commerce sector. BNPL enables consumers to split purchases into interest-free instalments, offering flexibility, convenience, and enhanced purchasing power. The research explores consumer awareness, behavioural shifts, advantages and risks associated with BNPL, and its impact on merchants, including increased sales and higher average order values. Using primary data collected from 100 respondents across major Indian cities and supported by secondary sources, the study analyses generational adoption patterns, with particular emphasis on the dominance of Generation Z and millennials. The findings reveal that while BNPL improves affordability and simplifies digital transactions, concerns regarding overspending, hidden charges, and regulatory transparency persist. The paper also evaluates leading platforms such as Amazon Pay Later, LazyPay, and Simpl, highlighting their features and market positioning. Overall, BNPL demonstrates strong growth potential but requires responsible use and regulatory oversight.
Keywords Alternative payment systems, Buy Now Pay Later (BNPL), Digital payments, E-commerce, Financial technology
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