Hey,
Have you ever heard the term “Buy Now Pay Later” when shopping online?
As expenses rise, people seek flexible payment options. That’s where Buy Now Pay Later apps come in. You can purchase products and services that allow you to pay later. But the question is whether using these BNPL apps is worth it. Let’s find out through this article.
What are Buy Now Pay Later Apps?
The meaning of the Buy Now, Pay Later term is clear from its name. It allows users to use small finances and pay later. Many e-commerce platforms and small finance companies offer these pay later services to users for convenient experience. A buy now, pay later loan is short term loan that allows consumers to make purchases and pay after some time. Consumers can enjoy flexible credit on purchases without any credit card. Compared to credit cards buy now pay later it is much easier to get credit approval.
- Timely payments through BNPL apps help you to build your credibility.
- Convenient payment and transparency with zero hidden charges generate valuable user experience.
How Do Buy Now Pay Later Apps Work?
The process of BNPL apps is simple. Buy Now Pay Later is flexible payment option that allows consumers to purchase items immediately and pay for them over time, usually in installments. Here’s how it works:
Select BNPL at Checkout:
Select the product or service you want to enjoy through the buy now pay later, then go to the checkout page. choose the BNPL option at checkout.
Instant Approval:
If you are new user, you need to provide some basic information for quick credit check. Add your accurate information (name, PAN card details, address, mobile number). Approval is usually instant.
Choose a Payment Plan:
After getting credit limit you need to select repayment plan that suits your budget. This could be weekly, or monthly installments.
Make the Purchase:
Complete the purchase and enjoy the benefits of the buy now pay later service.
Repay Over Time:
Pay off the balance in installments over the agreed period. Many BNPL services offer interest free periods but be aware of any late fees or interest charges if you miss payment.
Advantages of Using Buy Now Pay Later Apps:
Using BNPL apps can offer several benefits that might appeal to various shoppers:
1. Easy to Use
The BNPL process is not like the credit card. You don’t need to follow the lengthy process to get credit approval. You can avail short term credit facility instantly.
2. Zero Interest Credit
The main advantage of this BNPL app is you can enjoy their credit service without paying any interest on timely payments. You only need to pay the amount, you use through the BNPL credit limit which makes your purchase easier.
3. Increased Purchasing Power
Buy now pay later apps make your purchasing power increase. You can utilize your credit limit facility at that time when you have low cash budget. This can be especially useful during seasonal sales when items may sell out quickly.
4. Cash Flow Management
With the help of pay later or pay in installment options, makes it easier for consumer to manage their cash budget. User does not need to pay the full lumpsum amount at once.
5. No Hidden Charges
It is not like credit card where you get lots of hidden charges that you are not aware of. You have to pay only that amount which you use from your credit limit.
The Risk Involved With Buy Now Pay Later: What You Need to Know
While Buy Now Pay Later apps offer many benefits but there are also risks involved that you should be aware of:
Overspending: The ease of making purchases without immediate payment can lead to overspending and accumulating debt. It is important to budget and ensure you can afford the repayments. Some times spending through credit facilities puts you in the debt crisis.
Interest and Fees: Many BNPL services offer interest free periods but missing payment can result in high interest rates and late fees. Always read the terms and conditions carefully.
Credit Score Impact: Missing and delaying payments can negatively affect your credit score. Consistently managing your payments is crucial to maintaining good credit rating. Willful payment default makes you defaulter and lose the chances of getting the loan in the future.
Limited Consumer Protections: BNPL services may not offer the same level of consumer protection as credit cards. This can be an issue if you need to dispute the charge.
Impulse Buying: The convenience of BNPL can encourage impulse buying and lead to unnecessary purchases. It is important to consider whether you truly need the item before committing to the payment plan.
Complex Terms: Some BNPL services have complex terms and conditions that can be difficult to understand. Make sure you fully comprehend the repayment schedule and any potential penalties.
List of Top Best BNPL Apps in India
Here is the list of top best buy now pay later apps in India that give credit facilities on purchases.
- Simpl Pay Later
- Lazypay
- ZestMoney
- Amazon Pay Later
- Flipkart Pay Later
Simpl Pay Later
This BNPL app is user friendly and easy to use. With Simpl pay later you not only use your credit limit on purchasing products, you can also use this limit on paying your utility bills.
- Without any other additional charges you can enjoy your purchase, charges will be levied on late payment.
- Enjoy higher limit upgrades on timely repayments.
- Also pay your utility bills i.e. mobile, electricity, LPG cylinder, and your housing maintenance through the Simpl Pay Later app.
Lazypay
Lazypay’s name uniquely reflects its concept of allowing users to make payments later with ease and convenience.
- Through this lazy pay app you can pay back in full or in installments according to your convenience.
- Easy activation process and shop directly on multiple stores.
ZestMoney
This app allows user to pay in one tap for their purchase. This BNPL app is accepted in 10000+ online platforms in India.
- Easy activation with simple user interface and upload your KYC documents to get credit limit on ZestMoney.
- Without any joining fees and hidden charges you can enjoy up to 2 lakhs credit limit.
Amazon Pay Later
Another convenient option for consumers in Buy Now Pay Later app in India is Amazon Pay Later. This app allows users to purchase anything from Amazon on credit basis without any credit card.
- Easy installment option is available to repay the amount.
- No processing fee is required to set up Amazon pay later account.
Flipkart Pay Later
Like Amazon pay later, Flipkart also introduced buy now pay later facility for their users who have good credibility.
- Get instant credit approval without needing credit card.
- Use Flipkart Pay Later during checkout for smooth and hassle free shopping experience.
Conclusion
Is Using Buy Now Pay Later Apps Worth It?
The answer is not straightforward. It depends significantly on your financial habits and current situation. If used responsibly, BNPL can offer practical way to manage your purchases without overwhelming your finances.
By being aware of these risks and using BNPL services responsibly, you can enjoy the benefits without falling into financial trouble. Always budget carefully, read the fine print, and make timely payments to avoid any negative consequences.
Frequently Asked Questions (FAQ’s)
Q1. What happens if I miss payment?
Ans. Late fees may apply and it could negatively impact your credit score. Always set reminders for your payment deadlines.
Q2. Is my personal data safe with BNPL apps?
Ans. Reputable BNPL apps employ strong security measures but it is always wise to read their privacy policy and understand how they handle your information.
Q3. Which is the best Buy Now Pay Later app is best?
Ans. Popular options include Amazon pay later, Flipkart pay later, and Simpl pay later for seamless shopping experience.
