Get No-Cost EMIs at leading online stores. Shop using your Bajaj Finserv EMI Network Card Apply Now

What is Buy Now Pay Later?

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.

Benefits of Buy Now Pay Later

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!

How Does Buy Now Pay Later Work

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

Buy Now Pay Later With Bajaj Markets

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:


  1. Select the desired product, proceed to checkout to finalise the purchase

  2. Choose the BNPL option as the payment method to avail of the Buy Now Pay Later service

  3. For Walnut 369, provide your PAN, Aadhaar, and mobile number

  4. For Instacred, provide the bank name and mobile number

  5. Walnut 369 requires a minimum amount of ₹999 to be eligible for their BNPL service

  6. Instacred has varying minimum purchase amounts between ₹5,000 and ₹7,000, depending on the selected bank, to be eligible for their BNPL service

Eligibility Criteria & Documents Required for BNPL

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

Difference Between BNPL and Credit Card

There are some key differences between a credit card and a BNPL facility: 

Credit Cards


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  

Difference Between BNPL and Personal Loan

There are a few differences between a personal loan and a BNPL facility: 

Personal Loans


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

BNPL Players in the Indian Market

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. 


  1. LazyPay

  2. PineLabs

  3. OlaMoney Postpaid

  4. Flipkart Pay Later

  5. ZestMoney

  6. Simpl

  7. Capital Float

  8. 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. 

The Future of Buy Now Pay Later

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. 

FAQs on Buy Now, Pay Later

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. 


Download App
Credit Score