Buying now and paying later is transforming the way online payments are made. Young India is now relying more on BNPL applications that make their life easy. It is now here, to boost the festival shopping. Know more in this blog about how to buy what you want using a BNPL app like ZeroPay.
Buy now pay later in India is a buzzword that’s causing quite a sensation in the finance world. This fad has made inroads into the routine spending habits of young Indians. Indian consumers are always mesmerized by the enticing offers of the festive season. Festivals are an integral part of Indian culture, and they are considered auspicious occasions to make purchases.
A quick look into the working of BNPL
BNPL can be simplified and defined as an easy short-term credit facility. Borrowers can use such a service to buy the stuff they want and pay later. It can be through installments, or through making the complete repayment at once, depending on the application and their various repayment options.
BNPL is a simple and short-term finance service. It is often offered as a product. It allows customers to spread out their payments for purchases, without paying any additional interest.
Let’s look into some other aspects of its working. The fin-tech firm offering the Shop Now Pay Later service has ties with the leading e-commerce players, they can be food delivery platforms, shopping sites, or travel booking agencies. The customers borrow from the firm to make payments to avail the services offered by those sites.
The customers are given a stipulated time to pay back the amount. It can range from a few days to a few months. Depending on the many repayment options offered by the BNPL service provider, you can choose the option that works for you. Some give the option of repaying with several installments.
How BNPL is more consumer-friendly than credit cards
There are many great features that make BNPL distinct from an EMI scheme on credit cards. The ease of use and fast process make BNPL different and more beneficial than any other finance scheme.
The reason why BNPL has struck a chord in the minds of Indians is, it has addressed the unmet credit needs of the rapidly growing digital users. There are millions who carry out their daily transactions with mobile payments. They find the convenience of such payments highly beneficial.
It is estimated that only 30-35 million Indians are unique credit card users. Compared to the humongous population India has, the credit card penetration is significantly low. Therefore a large chunk of the Indian population is unserved and alienated by the formal credit market. This has allowed BNPL to be the fastest-growing alternate option for consumers.
BNPL is suitable for those individuals who do not own a credit card but can pay back small to mid-ticket instant loans.
Consumers can make the best out of BNPL services particularly during the festive season. It helps them by giving instant credit options, safe transactions, and unbelievable convenience.
BNPL is an interest-free as well as a low-cost option. It helps to reduce the financial burdens that emerge during the festive season. Using it you can better manage your cash flows, it can act as your emergency requirement. It can also help you to make any quick purchase at the end of the month.
BNPL will prove to be beneficial for you and its features will be advantageous only when you are able to maintain financial discipline and make your repayments on time.
Some apps charge late fees if you delay your payment. The interest accruals may cascade into a huge financial burden if left unchecked or unwillingly ignored. ZeroPay does not charge you any late fees, you can breathe and delay your repayment to an extent.
If your dues remain uncleared, the accumulated debt negatively impacts your credit score and hinders your overall financial wellbeing. Be sincere in making your repayments and enjoy a worry-free life.