BENGALURU: India's smaller cities are emerging as bigger users of digital credit than metros, even as consumers remain far more comfortable using payment apps to make payments than to borrow money, a new study has found.




About 60% of respondents in Tier-2 cities have used Buy Now, Pay Later ( BNPL ) services, compared with 45% in metros and 52% in Tier-3 cities. Yet, 64% of urban respondents have never formally applied for digital credit through an app, pointing to a gap between the growing use of checkout financing and formal digital borrowing .