Buy Now Pay Later, also known as BNPL, is a payment option that allows you to buy products or services without paying the entire cost upfront. As the name suggests, you can buy now, and pay later, in instalments.
You can choose to pay in fixed amounts over a specific period, typically ranging from a few weeks to a few months. BNPL is becoming a preferred payment option among customers, and more retailers are offering this solution.
However, it's essential to read the terms and conditions carefully before choosing this payment method. Before choosing this payment method, make sure you clearly understand how it works and how it will impact your finances.
There are several advantages to buying now and paying later. These include:
Buy big-ticket items without disrupting your budget
Using a BNPL card well and repaying on time can help you build a solid credit history and improve your credit score
In most cases, BNPL payments can be divided across three to four EMIs
Applying for a BNPL card doesn’t hurt your credit score, as there is no hard inquiry
The application process is simple and easy to complete
You can buy now and pay later at No Cost EMI and this makes it a cost-effective choice!
BNPL is a payment method that allows you to purchase products without a hefty upfront payment. It simplifies big-ticket purchase and offers flexibility with your finances. With BNPL, you can pay for your purchases in fixed amounts over a specific period.
Depending on the payment plan selected, you may be required to pay an initial down payment amount. After the purchase, you will receive a statement outlining the total amount owed, including any interest and fees.
For a better understanding of the workings of Buy Now Pay Later (BNPL), read on.
Buy Now Pay Later (BNPL) provides you with the flexibility to buy expensive products affordably
You can spread your instalments over a tenure of several months
You can make a down payment on your purchase to lessen your EMI burden
You get a statement outlining the total amount owed, including any interest and fees after completing the purchase
Interest rates and fees may apply, and you should carefully review the terms and conditions to understand the associated costs
You can choose the Buy Now Pay Later option using BNPL partners Walnut 369 and Instacred while making a purchase on Bajaj Markets. Here are the steps to follow:
Select the desired product, proceed to checkout to finalise the purchase
Choose the BNPL option as the payment method to avail of the Buy Now Pay Later service
For Walnut 369, provide your PAN, Aadhaar, and mobile number
For Instacred, provide the bank name and mobile number
Walnut 369 requires a minimum amount of ₹999 to be eligible for their BNPL service
Instacred has varying minimum purchase amounts between ₹5,000 and ₹7,000, depending on the selected bank, to be eligible for their BNPL service
To be eligible for BNPL in India, certain requirements must be met.
You must be an Indian resident
You must live in a major first or second-tier city
You must be a salaried individual, between 18 and 55 years of age
You must have a bank account with all the necessary KYC documents
There are some key differences between a credit card and a BNPL facility:
Credit Cards |
BNPL |
There can be hidden charges levied |
Features a transparent and low-cost pricing model |
Acceptance is easy and flexible |
Only certain fintech organisations and e-retailers provide BNPL services |
A good credit history is needed |
Credit history is not mandatory |
Come with standard interest-free periods |
Interest-free periods might go on for 48 months |
It is slightly difficult to get approval |
Approvals are easy and hassle-free |
The option of paying only the ‘minimum due’ is present |
The fixed EMI must be paid as per the scheduled date |
Interest rates can go up to 48% |
Interest rates can go up to 24% |
Interest rates are fixed |
Interest rates vary depending on several factors |
There are a few differences between a personal loan and a BNPL facility:
Personal Loans |
BNPL |
Maximum loan amount can go above ₹25 Lakhs |
Maximum loan amount is limited to ₹1 lakh |
Can be both secured and unsecured loans |
Service is offered against purchase of goods |
Interest is calculated on the principal sum |
No interest is calculated on the principal sum |
There are no restrictions on the spending of the loan |
Limited usage is offered |
Loan tenure can go up to 60 months |
Loan tenure is limited to 90 days |
The Buy Now Pay Later scene in the Indian market is growing steadily. There are many different BNPL players operational in the country. Here’s a quick look at some of the top players.
LazyPay
PineLabs
OlaMoney Postpaid
Flipkart Pay Later
ZestMoney
Simpl
Capital Float
Amazon Pay Later
As the Buy Now Pay Later industry continues to grow in popularity, more players are likely to enter the field in the near future.
Despite being just a few years old, Buy Now Pay Later payment solutions have managed to become very popular. This novel concept has found a lot of takers in the form of millennials and the younger generation.
It enables them to purchase their favourite products and pay their bills with just a few clicks on their smartphones. Most of the service providers operating under BNPL have also started allowing consumers to repay their dues through No Cost EMIs, one of India’s most popular payment options.
That said, although the Buy Now Pay Later concept seems like it is something very new, it is simply another form of a loan that has to be repaid on time. Failing to do so can lead to hefty interests, late payment fees and a negative impact on the consumer’s credit score.
As long as consumers are aware of the pitfalls and dangers of not making repayments on time and using the BNPL facility judiciously and responsibly, the future of this payment solution looks very bright.
Yes, Buy Now, Pay Later is a good idea if you diligently repay the borrowed money as agreed. Consequently, you get to manage your finances while purchasing essentials. It can even help in building and improving your existing credit score.
To enjoy BNPL services in India, you can shop on Bajaj Markets and select the Buy Now, Pay Later option at checkout.
Companies offering BNPL services do not initiate a hard credit check to grant approval for buy now pay later services. However, it is always good to maintain a good credit score.
Buy Now Pay Later (BNPL) has seen a significant rise in popularity, and two main factors driving this growth are the availability of No Cost EMIs and easy accessibility. These features have made BNPL an attractive payment option for consumers looking for a more flexible and affordable payment solution.
Not necessarily. However, BNPL is set to become the preferred choice of payment in Indian households.
Buy Now Pay Later (BNPL) payment solutions have become increasingly popular, and there are several benefits to opting for this payment method. Firstly, it allows you to pay for your bills and purchase your favourite products instantly. This can be particularly useful when you don't have the cash available immediately.
Additionally, there are usually no interest charges associated with using this payment solution, which can save you money. As long as you make your payments on time, you won't have to pay any interest on the amount you spend. Finally, BNPL is secure and encrypted, providing peace of mind when making transactions.
No, you don't pay interest on Buy Now, Pay Later transactions. However, if you fail to make the required payments within the specified time, you may incur interest charges and late fees.
If you do not pay your BNPL instalments on time, you may incur late fees and interest charges. Additionally, your credit score may be impacted, and the unpaid debt may be sent to collections.
Yes, BNPL can be a credit risk as it allows you to defer payments for goods or services. If you fail to make payments on time, it can negatively impact your credit score and result in late fees and interest charges.