Razorpay-backed POP bets on credit to monetise UPI users

Razorpay-backed consumer fintech platform POP is turning its UPI user base into a new lending opportunity, offering small-ticket credit to shoppers as fintech companies look beyond payments and rewards for ways to monetise their frequent customer interactions.

POP has launched POPchop, a buy-now-pay-later product that allows eligible customers to split purchases made on its POPShop platform into three interest-free payments over three months. The offering marks the company's expansion from UPI payments, rewards and commerce into consumer credit.

The move comes as consumer fintech platforms look to monetise large customer bases built through UPI, where transaction volumes are high but direct monetisation for third-party apps remains limited. Several platforms have expanded into adjacent businesses such as credit, wealth management and commerce to generate additional revenue streams.


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POP said POPchop already accounts for 10-12% of orders on POPShop, despite being in a limited rollout and without external marketing. More than half of its early users, it said, are accessing formal credit for the first time.

“UPI gives us a frequent relationship with the customer, while commerce shows us how that customer shops and uses rewards. Credit is the next extension of that journey,” POP founder Bhargav Errangi said. “For many young consumers, the need is not a large personal loan but the ability to manage the timing of selected purchases against their monthly cash flow.”

The move comes as access to formal retail credit expands. The share of India's credit-eligible population that had accessed retail credit at least once rose to 74% in March 2026 from 35% in March 2017, according to TransUnion CIBIL.

Consumption-linked borrowing is also emerging as an entry point into formal credit. Consumer durable loans accounted for about 46% of consumption-related loan originations among first-time borrowers in the first quarter of the current financial year, while personal loans accounted for another 18%, according to CRIF High Mark data.

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Smaller-ticket borrowing has also gained ground within unsecured credit. The share of open credit cards among India's unsecured credit products fell to 38% in 2026 from 56% in 2016, according to TransUnion CIBIL, while loans of up to ₹50,000 increased their share.

POP's initial proposition was built around UPI transactions, with customers earning POPcoins that could be redeemed on its shopping platform. POPchop brings credit into the same ecosystem, allowing customers to finance purchases without moving to a separate lending service.

The product is offered through partnerships with regulated lenders, including PayU Finance India and LazyPay. Lending partners determine customer eligibility and credit limits based on their own underwriting criteria, while customers can make multiple purchases within their approved limits.

POP has not disclosed approval rates, average credit limits or the average value of purchases financed through POPchop. It plans to add more lending partners as the product expands.

The company said about 60% of early POPchop users returned to place another order in the following month. It also reported 94% UPI retention among customers who have used POPchop, although it has not provided a comparable figure for users who have not used the credit facility.

Repayment performance will be a key metric as the product scales, particularly because more than half of its early users are new to formal credit. POP has not disclosed on-time repayment rates, delinquencies or the proportion of customers who have completed all three payments.

Founded in 2023 by former Flipkart executive Errangi, POP competes with consumer fintech platforms including CRED, Navi and super.money. Razorpay invested $30 million, or about ₹259 crore, for a majority stake in POP in June 2025. POP had previously raised capital from India Quotient, Unilever Ventures, Incubate Fund and Nuventures.

For POP, the credit push is an attempt to extract more value from a customer relationship that began with UPI payments and was extended through rewards and commerce. The performance of POPchop will depend on whether customers continue to use the facility and maintain repayment discipline as the initial rollout expands.