BUY NOW PAY LATER

BUY NOW PAY LATER

TOPIC: Economy

Context- The ease of access to credit has made BNPL the most preferred product among GenZ consumers, young millennials, new to credit borrowers, who were often underserved or overlooked by traditional banks.

Concept-

What is Buy Now, Pay Later

• Buy Now Pay Later or BNPL, as it is popularly known, is a financing option that allows you to buy a product or get a service without paying for it immediately.
• It’s simply a short- term loan product where the BNPL lender pays the merchant or service provider at the point-of- sale and allows you to repay the loan at a future date with little or no interest charge.
• The repayment can either be in lumpsum or in the form of equated monthly instalments (EMIs).
• g. Zest- Money, LazyPay, MobiKwik, Paytm Postpaid, Amazon Pay Later, Flipkart Pay Later, Capital Float among others.

In what way is it different from credit card payment?

• Both credit cards and BNPL are similar in a sense that both offer deferred repayment options to the borrower.
• However, there are certain key differences between these two credit products.