Buy now, pay later (BNPL) is a financing option that permits buyers to buy something but pay for it later within a specified interest-free period. The provider of BNPL pays the bill outright with the merchant on the buyer’s behalf. This option is open for everyone, even for those who don’t have credit cards. Like credit cards, ‘Pay later’ shopping typically refers to an interest-free period following the purchase, during which no payments were made and no interest charged. It presents them with easy access to credit for small-ticket purchases. The first-time user on the platform will have to complete the KYC process to use this feature. The interest-free period is generally 15 days. While the credit limit is extended based on the CIBIL record from Rs. 500 to Rs. 10,000, which can be further extended.
Listed below are the benefits of Buy now, pay later:
The reason why BNPL is getting popular among the consumer is that they are open to and hungry for new and time-saving online payment methods, particularly if they give more flexibility and a feeling of greater power over their finances.
The modern revolution in fintech space has proved that whenever there is a need to reduce financial friction, startups will rush in with innovative solutions. Also, this new payment alternative could additionally weaken the traditional credit card market.