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What Are Buy Now And Pay Later Apps? How They Are Disrupting The Credit Card?

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In recent years, a number of buy now pay later (BNPL) mobile apps in India have emerged on the Indian market. These apps work in a similar way to credit cards in that they give users an immediate credit line that customers can use to pay for goods and services like energy bills, food, and shopping. This method provides customers with a simple and quick approach to meet their daily expenses without having to worry about running out of cash.

 

Take a look at some of India's best buy now and pay later apps:

1. Lazy Pay

1. Lazy Pay

You may get a personal loan of up to Rs. 1 lakh with the LazyPay app. You simply need to enter some basic information to find out what is your credit limit. One of the most significant benefits is that you may apply for a personal loan online for sums as little as Rs. 10,000 or Rs. 20,000, up to your credit limit.

PayU Finance India Private Limited, a systemically significant non-banking finance firm incorporated with the Reserve Bank of India, owns the LazyPay technology platform.

2. Postpe
 

2. Postpe

Postpe is another shopping and payment platform that allows you to buy now and pay later, on anything and everything. It is the newest BNPL app in the peer group. It gives you financial independence and helps you keep track of your monthly expenditures.

Postpe is owned by Bharatepe, an Indian Fintech company with a focus on small merchants and retail stores in India. BharatPe is a market leader in providing QR codes for UPI payments in the country.

3. PayTM Postpaid

3. PayTM Postpaid

PayTM is a market leader in the Fintech peer group in India. Initially, it was designed to offer daily payments through mobile with digital wallets. Later in 2015, they stepped into payments bank, a new banking system by RBI.

Paytm Postpaid facility can only be used to make online or offline in from specific merchant websites or shops that accept Paytm Platform payments. You can avail of credit up to Rs 60,000 at 0% interest rate for 30 days. Getting a PayTM Postpaid facility is a totally digital process.

4. Amazon Pay Later

4. Amazon Pay Later

The Amazon Pay EMI service has been renamed Amazon Pay Later. It's a hassle-free way to acquire fast credit for Amazon.in EMI purchases through an entirely digital approach. You must complete a one-time setup process that should take no more than 2 minutes and does not involve credit card information.

5. Flipkart Pay Later

5. Flipkart Pay Later

It is a credit facility offered by the e-commerce giant on its app for its customers. It offers a credit limit of Rs. 70,000. It allows the customers to avoid the use of Credit Card on its platform. Customers can use Flipkart Pay Later to prevent delays during the checkout process on Flipkart.com. Customers who use the service can purchase things and pay for them before the 5th of the next month, incurring no additional fees. With Flipkart Pay, keeping track of your bills is a breeze.

6. Mobikwik ZIP pay

6. Mobikwik ZIP pay

MobiKwik is another Mobile wallet similar to PayTM, however, they don't licence to operate payments banks as PayTM has. It is a well-known fintech brand in India, especially among those who live in big cities and even small towns. MobiKwik has developed to be India's most efficient and beneficial indigenous fintech brand, with over 120 million customers across the country.

MobiKwik ZIP is a digital credit card with a credit limit of up to INR 30,000 with 0% interest, equivalent to a credit card. To get these credit perks, you must register for the MobiKwik App and activate the ZIP feature. The money you've been assigned will be deposited into your digital wallet right away.

How BNPL is disrupting the credit Business?

How BNPL is disrupting the credit Business?

BNPL apps are completely aligned with the consumer, as they do not levy late fees or deferred interest to take advantage of customers as banks do. Risk modelling is used by BNPL enterprises, and they are ideally positioned to undertake credit assessments and provide loans. This is due to the fact that they have access to critical data, and merchants are ready to give the BNPL provider a cut because they now have vital customer-level data, and the BNPL option allows merchants to produce more sales.

One of the reasons why customers prefer BNPL apps over the traditional credit card offered by the banks is their reliability, ease to apply, seamless process, and minimum charges. Unlike bank credit cards, which are hard to get as customers need to provide various documents such as income proof, CIBIL score, and other tons of documents.

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