Buy Now Pay Later
                     BUY NOW PAY LATER: ALL YOU 
NEED TO KNOW
WHAT IS BNPL 
PAYMENT?
BNPL also known as Buy Now Pay Later is a 
payment option where you can make a 
purchase without having to pay from your own 
pocket. Generally, you sign up with a company 
providing this facility who makes the payment 
when you make the purchase.
Source: www.bankbazaar.com
HOW DOES BNPL 
WORK?
BNPL service providers share the same 
operational model with terms and conditions 
being the only differentiator. Here's how it 
usually works:
• Make a purchase at a participating retailer.
• Opt for the ‘Buy now, pay later’ option.
• Make a small down payment of the overall 
purchase amount.
• The remaining amount shall be deducted in 
a series of interest-free EMIs.
Source: www.bankbazaar.com
ADVANTAGES OF 
BNPL
• Increases affordability
• Instant access to credit
• Safe and secure transaction
• Can choose repayment tenure
• No cost EMI
• Simple and transparent process
Source: www.bankbazaar.com
ELIGIBILITY CRITERIA FOR 
BUY NOW PAY LATER
• You must be a resident of India.
• You must reside in a major tier 1 or tier 2 
city.
• You must be aged above 18 years. The 
maximum age of eligibility in some cases 
can be up to 55 years.
• You must be a salaried individual.
• You must have a bank account and all the 
KYC documents in place.
Source: www.bankbazaar.com
INTEREST RATE 
COMPARISON (CREDIT 
CARD VS BNPL)
• The rise of BNPL service providers can be 
accounted for the pandemic. With the 
increased demand for e-commerce services 
due to lockdowns and consumers preferring 
to break down large expenses into smaller 
interest-free EMIs, BNPL has become a go-to 
option for many. 
• ‘Buy Now, Pay Later’ has a lot to offer, 
however, it is still a loan and you need to be 
careful while looking to avail it. While you 
can get BNPL approvals easily, failure to 
make payments on time can hurt your credit 
score.
Source: www.bankbazaar.com
BNPL PLAYERS IN THE 
INDIAN MARKET
Some of the BNPL players available in the 
Indian Market are given below:
• ZestMoney
• LazyPay
• Simpl
• Amazon Pay Later
• Ola Money Postpaid
• Paytm Postpaid
• Flexmoney
• EPayLater
• Capital Float
Source: www.bankbazaar.com
THE FUTURE OF BUY NOW 
PAY LATER
The future of BNPL can be very bright as the 
concept will attract more customers to 
purchase an item of their choice instantly. 
Most of the lenders who provide this facility 
offer repayment at no cost EMIs which in future 
is likely to become the preferred payment 
option especially among the youth.
Source: www.bankbazaar.com
HOW DOES BNPL MAKE 
MONEY?
BNPL makes money from both sellers and 
consumers. In case of sellers, they pay BNPL a 
fee ranging between 2% and 8% of the 
purchasing amount if the customer uses the 
BNPL facility. 
BNPL players also make money by solidifying 
their positions through various marketing or 
promotional spend given that the seller is able 
to increase conversion or traffic.
Source: www.bankbazaar.com
 IS BUY NOW PAY LATER AN 
INSTALLMENT LOAN?
BNPL is a type of installment loan as you pay 
the amount spent by you via Equated Monthly 
Installments (EMIs). 
After a certain period, interest is charged on the 
amount spent by you, and in case you fail to 
pay within the stipulated period, penalty is 
levied. A repayment tenure is set within which 
the amount is to be repaid.
Source: www.bankbazaar.com
DOES BNPL AFFECT 
CREDIT?
As long as you repay the amount on time, your 
credit score will not be impacted. If you clear 
the amount on time, you credit score is likely to 
improve. However, if you miss or delay your 
payments, then you credit score will fall.
Source: www.bankbazaar.com