'Buy now pay later' in lifestyle purchases showing non-payments: Report

Micro businesses in states like Bihar, Rajasthan and Madhya Pradesh have the highest non-performing assets, while the UT of Jammu and Kashmir is the best performer, the report by OkCredit said

Lifestyle enhancing purchases in segments like apparel and jewellery using the 'buy now pay later' instrument are showing higher incidents of non-payments because of higher ticket sizes and stagnancy in demand due to the pandemic, a report said on Wednesday.

Micro businesses in states like Bihar, Rajasthan and Madhya Pradesh have the highest non-performing assets, while the Union Territory of Jammu and Kashmir is the best performer, the report by OkCredit said.

OkCredit released its annual study titled ‘Decoding Informal BNPL’, a detailed report that purportedly delves deep into the system of credit linked purchase in unorganised retail.

The data analysed is OkCredit’s proprietary data of over 30 million registered merchants. The report delves on the various elements of Informal BNPL in unorganised retail.