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There is a good enough chance that if you are shopping or merely browsing the Internet, you must come across Buy Now Pay Later options. Buy Now Pay Later is a payment method that permits customers to purchase something now and pay for it later after a given period.
You can buy from a range of merchants such as Zomato, Swiggy, Amazon and the BNPL provider will settle the payment for you. You can make the payment at your own pace and convenience to the BNPL provider at next to no interest within the mentioned time period (which can range between 15 days to a month). Some BNPL companies in India such as Simpl, Slice, and LazyPay have become quite popular lately.
Benefits of BNPL Schemes
Here are some benefits of using BNPL schemes:
BNPL is especially game-changing for people without credit cards who want to make expensive purchases on EMIs but hesitate to do so, as they aren’t able to afford to pay the amount in one go.
You just have to sign up on your BNPL platform, complete the Know Your Customer (KYC) process, and you can start transacting with just a single click.
No OTP required
BNPL providers ensure that your transaction is uninterrupted and quick. This is why they eliminate the requirement for OTP and keep the process short and sweet.
One bill for all purchases
BNPL providers make payments increasingly convenient by presenting a single bill for all purchases made within a time period.
BNPL vs. Credit Cards
Buy Now Pay Later schemes are a great substitute for credit cards. Still, it is important to know some of the distinct differences between the two.
- With BNPL, you can expect quick credit approval as its screening approach relies on machine learning. On the other hand, approval of a credit card has an elaborate criterion (including credit scores) and it might take days or even months for an approval.
- You have to pay a small premium as joining and renewal fees for credit cards, which doesn’t apply for BNPL.
- Credit cards can be used to withdraw cash whereas BNPL schemes have no such provision yet.
- Interest charges levied on credit card payments are generally much higher than the interest on BNPL schemes. But at the same time, BNPL platforms do provide the provision of an interest-free period.
Advantages of Using BNPL This Festive Season
The Buy Now Pay Later market in India has flourished ever since the pandemic hit. As the festival season approaches, we can expect a massive increase in the number of shoppers who would make use of Buy Now Pay Later in India as a part of their shopping experience. Here are a few advantages of using BNPL when shopping this festive season.
Offers on Merchant Platforms
The festive season means incredible sales, unbelievable discounts, and chances to win vouchers and cash backs. Many of which are available only when you pay using specific BNPL platforms.
It is never recommended to buy more than you can spend. So, it is quite crucial to keep track of your expenses and stay within your budget. BNPL companies in India often set a predefined credit line for the same purpose. Their interactive dashboards are also a great way to track your expenses.
These advantages give a clear edge to shoppers who are transitioning towards BNPL, propelling its growth as the preferred payment method for Indians.