India’s smartphone market sees shift in consumer payment trends

India’s smartphone market is witnessing a shift in how consumers pay for their devices. According to Counterpoint Research’s Monthly Smartphone Financing Tracker for May 2026, financing options, which comprise NBFC financing, credit card EMI and debit card EMI, are expected to account for 42% of total smartphone sales in 2026, up from 35% last year. With smartphone prices continuing to rise due to component cost inflation, consumers are increasingly preferring these options over cash or one-time payments.

Commenting on the market dynamics, Research Director Tarun Pathak said, “India’s smartphone market has remained under pressure in the first half of the year due to rising memory prices, and this trend is expected to intensify further. Against this backdrop, smartphone financing is gaining ground as a primary purchase mechanism. Among financed smartphone sales overall, around 67% of units are being financed by NBFCs. In Tier 2 and Tier 3 cities, where bank-led credit card EMI schemes are limited, many new-to-credit customers are looking for financing options, a gap that NBFCs can fill. We expect the coming festive season to be driven by these financing options, along with upfront discounts. The onus is now on brands and channels, which will seek to capture demand through aggressive affordability offers like long-term EMIs and exchange schemes.”

Commenting on the brand dynamics, Senior Analyst Prachir Singh said, “Samsung leads the market in terms of smartphone units sold through financing. The company’s strategy to use Samsung Finance+ as well as other financing options is working in its favor. Besides, it provides the best tenures across price bands. Mainline retail-heavy brands, such as Samsung, vivo and OPPO, enjoy higher financing penetration, as mainline channels hold a distinct advantage of person-to-person interaction, and consumers often find it difficult to understand schemes on their own. As seen in our recent survey, hidden charges and unclear terms and conditions were the major reasons people refrained from opting for financing options. On the NBFC side, Bajaj Finance is the leading brand, followed by TVS Credit. As financing continues to expand across brands and channels, those that can simplify the consumer experience and build trust around financing will be best placed to capture the next wave of smartphone upgrades in India.”

Looking ahead, financing is expected to deepen its share of India’s smartphone market through the rest of 2026, as rising device prices keep affordability front and center for consumers. With premium and mid-premium brands already leaning heavily on long-tenure EMIs to drive sales, the trend toward premiumization is likely to gather further pace, supported by financing structures that make higher-value devices more accessible to a broader base of buyers. Counterpoint Research