The Consolidation
Several large BNPL providers — including LazyPay and ZestMoney — scaled back operations or pivoted after RBI's digital lending guidelines made their flow-of-funds model non-compliant. The survivors are either co-lending with regulated NBFCs or embedded within e-commerce platforms.
What's Still Available
Healthy BNPL options in 2026 include: Flipkart Pay Later (backed by Axis Bank), Amazon Pay Later (backed by Axio), and Simpl (NBFC-backed). These are compliant, show full interest rates, and report to credit bureaus.
The Credit Bureau Catch
Most BNPL products report to credit bureaus. Missing a BNPL payment affects your CIBIL score the same way a credit card default does. If you use BNPL, treat it as a credit card — pay in full before the due date. The convenience of deferred payments isn't worth the credit score damage or the 24–42% annualized interest on overdue amounts.