BNPL basically stands for the Buy Now Pay Later in India. It is a recent phenomenon that is sweeping the nation. Buy Now Pay Later is a new way of shopping that has been gaining popularity in recent years because of its flexible payment terms and easy access to credit. The concept of buy now pay later is the same as any other credit card, but without the need for a credit check.
The idea behind it is to provide customers with the opportunity to buy products without having to pay for them immediately. It is also sometimes known as deferred payment or deferred purchase. With buy now pay later, you are able to make purchases and not worry about having enough money on hand to cover it until your next paycheck arrives. It’s an easy way to shop without worrying about how much money you have on hand at any given time.
BNPL is beneficial for customers who want to buy expensive items but don’t have enough money upfront for them. With this option, customers can make payments in instalments over a period of time until the full amount has been paid off.
Difference between Buy Now Pay Later (BNPL) and Credit Card
A Buy Now Pay Later BNPL is a type of credit line which is issued by a financial institution, where the customer does not need to pay the entire outstanding balance on the due date. Rather, they are given an interest-free period to pay off what they owe and make their repayments in instalments.
The main difference between BNPL and a credit card is that the customer does not pay interest on their purchases, which makes it more affordable. It is a form of deferred payment, in which the customer pays for the item at a later date. The customer is given the option to pay for the item in instalments or pay it off in full at any time. This type of financing is offered by online retailers, such as Amazon and Flipkart, to their customers.
Advantages of Buy Now Pay Later (BNPL):
- Convenient and easy to use.
- Instant Access to Credit Line.
- Access to No Cost EMI facility.
- Purchase items without having to worry about the upfront cost.
- Amount can be paid in short term and long term EMI.
- Amazing offers being provided by BNPL service providers.
Advantages Over Other Financial Products
The Buy Now Pay Later option can be used as an alternative to credit cards or personal loans. It offers buyers more flexibility with the ability to purchase something big without having all the money upfront, but with a higher interest rate than traditional loans or credit card purchases.
Buy Now Pay Later (BNPL) Players in India:
- Amazon Pay Later
- Flipkart Pay Later
- Ola Money Postpaid
- LazyPay by PayU
- ZestMoney
- UNI Card
- Slice Card
- Simpl
- PostPe by Bharat Pe
- Paytm Postpaid
- Redcarpet
- Flexmoney
- EPayLater
- Capital Float
- Freecharge Pay Later
- Mobikwik Zip
- ICICI Pay Later
Conclusion:
Buy now pay later is a great way for people with low income to purchase things that they would otherwise not be able to afford. It also provides a way for people to maintain their credit score, which is often negatively impacted by late payments, late returns and other financial mistakes.
BNPL in India has been around for quite some time now and has been providing an excellent service for the Indian population. The Indian government has been supportive of BNPL as well and it can be seen as one of the reasons why BNPL has grown so much in India.
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