Shoppers are increasingly turning to credit purchases, with credit sales doubling this festive season. According to e-commerce enabler GoKwik, credit-driven purchases on its platform have surged significantly, rising from 3.49 per cent in 2023 to 6.9 per cent in 2024, driven by credit cards and Buy Now, Pay Later (BNPL) options.

Categories such as footwear and fashion have shown the highest preference for credit-based prepaid payments, while other categories, like beauty and personal care, continue to favour cash on delivery (COD). This trend is not limited to top-tier cities; consumers in tier-3 cities are also opting for credit payment options, including credit cards and BNPL.

Additionally, prepaid payments rose by 13 per cent compared to last year, while COD orders, dominant at 46 per cent in India saw an 8 per cent decline.

Average Order Value

While overall Average Order Value (AOV) rose by a nominal 3 per cent during this period, categories like fashion and jewellery saw particularly strong growth at 15 per cent and 13 per cent respectively. Categories with high AOV products like electronics saw a 36 per cent increase in credit card payments and a 27 percent increase in BNPL, showing that shoppers prefer these payment methods for high-value purchases.

Founded in 2020, GoKwik is an e-commerce enablement company with a network of 120 million data points. The company offers smart COD interventions across cities and towns, reducing Return to Origin (RTO) for its partners, managing returns and exchanges, and maximising customer engagement across all channels.

GoKwik supports over 10,000 brands in its network, including Lenskart, Neemans, Man Matters, and Shoppers Stop. These brands span various key online shopping categories, including fashion, beauty, health and nutrition, electronics, and more

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