BNPL is very marketable nowadays. Many companies including Amazon, Flipkart, Paytm, ZestMoney, etc. are offering BNPL (Buy Now Pay Later) services without any hassle. Among them, about 30% of all 20 to 30-year-olds are spending more than their capacity.
For most people, Buy Now Pay Later can be a convenient way to spread out the cost of your purchases. But as the industry continues to grow, our expressing its concern is getting louder.
There are fears that buyers are spending more than they can afford and adding to the existing loans they are already struggling to manage.
What is Buy Now, Pay Later?
It is a type of short-term financing that helps the consumer to make purchases and pay them at a later date. Instead of paying the full amount of your purchase, BNPL allows you to spread the cost over smaller amounts over a shorter period, usually weeks or months. Generally, the credit-free period ranges from 15 to 45 days and they charge a small interest after 45 days.
How does BNPL work?
Buy now, pay later programs are not exactly the same. Each company has its terms and conditions, but generally, installment credit is set off along the following lines:
- You purchase from a joining merchant and select the Buy Now option, pay later at checkout.
- If approved, you make a small down payment, such as 25% of the total purchase amount, and then you pay the due balance in a series of interest-free installments.
- You can pay by check or bank transfer; Payments can be automatically deducted from your debit card, bank account, or credit card.
Benefits of BNPL
A few of the benefits of buy now pay later are listed below:
- Increases purchasing power
- Quick access to credit
- Safe and secure transactions
- Can choose a repayment term
- No-cost EMI
- Simple and transparent process
Eligibility criteria
To avail of the Buy Now Pay Later feature you need to fulfill the eligibility criteria:
- You must be a resident of India.
- You must live in a major Tier 1 or Tier 2 city.
- You must be above 18 years of age. The maximum age of eligibility can be up to 55 years in some cases.
- You must be a salaried person.
- You must have a bank account and all KYC document
BNPL Apps In India to Get Instant Free credit line
A few of the BNPL apps available in the Indian market are given below:
- LazyPay
LazyPay is one of the most well-liked BNPL app options in India. Along with the paperless KYC process, it offers instant credit lines. Also, to cope with all of the dealer’s usage of UPI, you may pay through scanning or the usage of your UPI ID.
Point of convergence
- Consumers will pay on online retailers like Flipkart, Zomato, Swiggy, etc
- Credit free period is upto 15 days
- Maximum credit limit is upto ₹1,00,000
- KYC document required
- Regular offers on retailers
Offered by: Lazypay(in partnership with PayU India)
2. Simpl
Simpl is another app that offers one-click buy now, pay later service, with no hidden fees or extra charges provided you pay on time. Also, the best part is that you do not require KYC documents to get started with Simpl.
Point of convergence:
- Consumers can pay online at supported retailers
- Credit free period is upto 15 days
- Discounts and offers on retailers
- No KYC document required
- Consumers can pay utility bills from the credit line provided
Presented by: Get Simpl Technologies Pvt. Ltd
- Paytm Postpaid
Paytm is one of the payment apps in India. Interestingly, Paytm also offers a pay later service called Paytm Postpaid to its active customers. You can activate it by going to Paytm > All Services > Loan & Credit Card > Paytm Postpaid.
Postpaid service lets you pay for partner merchants or for eligible services. You will automatically see Postpaid in the payment options whenever applicable. Your postpaid spending limit is decided on the basis of transaction history, relationship with Paytm, and credit history with credit bureaus.
It currently offers three variants – Postpaid Mini, Postpaid Lite, and Postpaid Delete. DELITE has no convenience fee, while the other two have a convenience fee of about 1-3% of the total spend.
Point of convergence:
- Consumers can pay at Paytm retailers and online partners
- Consumers can pay their bills or shop at Paytm Mall
- Credit free period upto 30 day
- The Maximum Credit limit is upto ₹60000
- They charge a convenience fee applicable on Mini and Lite
- KYC document required
Offered by: Paytm (in partnership with Aditya Birla Finance, Clix Finance)
- Amazon Pay Later
Amazon Pay EMI service has been renamed as Amazon Pay Later. It is a hassle-free way to get fast credit for Amazon.in EMI purchases through a completely digital approach. The amount can be paid by the 5th of the next month or EMI can be paid over 3 to 12 months. However, for this you have to set up auto-repayment,i.e, the amount will be automatically deducted from your bank every month.
Point of convergence:
- Consumers can pay their mobile, water, electricity bills, etc.
- Credit free period is upto 30 days
- Maximum credit limit is upto ₹60,000
Offered by: Amazon India (in partnership with Capital Float/ IDFC First Bank)
- Freecharge
FreeCharge Pay Later is a credit facility for consumers that is available for select registered users of FreeCharge. It offers a one-click payment experience for making purchases/payments at FreeCharge or its merchants/partners and paying off dues up to 30 days of the credit period. Point of convergence:
- Maximum credit limit is upto ₹10,000
- Use for payments on Freecharge or other partners
- Interest is charged on the amount used
- An annual fee is charged by Axis bank, the amount of ₹199.
Offered by: Freecharge (in partnership with Axis bank)
- Flipkart Pay Later
Flipkart Pay Later is an easy way to avoid inconvenience during the Flipkart Pay Later checkout process. Now you can buy your products, experience using them and pay for them with zero extra charges before the 5th of next month. Flipkart Pay Later gives you the freedom to make the purchases you want without any hassle in a quick, simple and convenient way.
Point of convergence:
- It can be used to shop only on Flipkart
- Credit free period is upto 35 days
- Maximum credit limit is upto ₹70,000
- A usage fee of ₹10 on bill amounts greater than ₹1,000
Offered by: Flipkart (in partnership with IDFC First Bank)
7. Mobikwik Zip Pay Later
Zip Pay Later is an exclusive small credit offering from MobiKwik. You can use that money to pay bills, shop for groceries, food, medicines, or just about anything online, and simply pay bills through Zip. Your zip bill will be generated twice a month after 15 days. So that means you can make any purchase you want and pay for it later. Credit given to a user through MobiKwik is at 0% interest if the bill is paid on time.
Point of convergence:
- Mobikwik Zip Pay Later help to pay bills and on brands associated with Mobikwik
- Credit free period is upto 30 days
- The maximum credit limit is upto ₹30,000
- They charge a one-time activation fee of ₹99
Offered by: Mobikwik (in partnership with ZipPay)
- ZestMoney
ZestMoney is a unique platform that uses mobile technology, digital banking, and Artificial Intelligence to make life more affordable to millions of Indian consumers by putting customers in touch with our lending partners and managing their credit for them.
Point of convergence:
- Credit free period is upto 3-4 months
- No joining fees and zero hidden charges
- KYC document require
- Maximum credit limit of up to 2 lac
Offered by: ZestMoney’(in partnership with Nahar credit cooperation)
- Postpe
Postpe is another shopping and payment platform that allows you to buy now and pay later, on anything and everything. It is the latest BNPL app in the peer group. It gives you financial independence and helps you keep track of your monthly expenditures.
Point of convergence:
- Maximum credit limit of up to Rs 10 lakh.
- Credit free period up to 30 days
- No joining and annual fees
Offered by: ZestMoney’(in partnership with Nahar credit cooperation)
10.Bullet- Pay Later
Bullet Pay Later is a loyal postpaid UPI app from the house of Neo banking platform Jupiter. You can use this credit limit to make payments to both online and offline merchants that accept UPI payments. Bill is generated twice on the 15th and last day of every month. You can repay the bill within five days of generation. Unfortunately, it looks like Bullet has temporarily paused the onboarding of new customers.
- Consumers can pay online on apps like Swiggy, Zomato, Amazon, etc
- Pay your mobile recharge and other utility bills
- Credit free period is upto 15 days
- Maximum credit limit is up to ₹10,000
Offered by: Bullet (in partnership with Amica Financial Technologies Private Ltd).