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BNPL (Buy Now Pay Later) has been around for quite some time in India. However, the pandemic pushed its adoption among the masses at an unprecedented pace. According to a Research and Markets report, in India, Buy Now Pay Later is expected to grow by 89.5% on annual basis to reach US$ 6927.4 million in 2022. And India being a billion-strong consumer market riding a rising wave of e-commerce, the trends further look even more promising with growing players like LazyPay (a PayU service).
To understand this new e-commerce trend of BNPL shopping mean in India, let’s dive deeper from its basics to its benefits.
Page Contents
What is BNPL
BNPL, short for Buy Now Pay Later, is a payment option where you can purchase a product or service immediately. Instead, your BNPL service provider pays it on your behalf. And at the end of the stipulated time (usually a month), you are required to pay to back the accumulated amount to your BNPL service provider.
How BNPL works
In essence, all BNPL providers like operate similarly with differences in their terms and conditions, and their participating merchants.
So, once you register yourself with a BNPL service provider, you are offered a credit limit. . Thereafter, here are the steps you take to use its services:
- Choose a product or service at a participating merchant on your BNPL platform
- While payment, pick for ‘Buy now, pay later’ option
- Your BNPL service provider makes the payment. (The amount gets deducted from your credit line)
- At the end of the stipulated tenure, you make the repayment on your BNPL account with a debit card, online banking, or other accepted methods.
Do note, that if you fail to make the repayment on or before your due date, you may have to pay interest over your borrowings; and further delays may impact your credit score as well.
This process gives you the advantage of managing your expenses on a monthly (or repayment stipulated time) basis.
Once you register for the LazyPay BNPL service (iOS or Android),. This credit limit can increase periodically when you make timely and full payments.
Features of BNPL
BNPL is great for those looking to extend their monthly expenses without getting a credit card. The following are other amazing benefits of BNPL:
- Increases your affordability
- Instant credit at hand
- Quick and secure transactions
- Zero-interest rates on repayment
- Convenient checkout in under 5 seconds
For its ease of usage and rapid adoption among Gen-Z shoppers, a varied range of merchants on Lazypay, offer best-in-the-market deals and discounts on each transaction.
One of the most popular BNPL services in India, LazyPay offers
Why to prefer BNPL over Credit Card
To start with, getting a credit card requires you to have a good credit score, but BNPL providers onboard without it. This simple onboarding process makes it attractive for Millennials and new earners who are new to the credit industry.
Below are more reasons which explain BNPL rising trend over traditional credit cards:
| Credit Card | BNPL |
| May have joining charges | No joining charges |
| Must have good credit score to apply | Not mandatory to have credit score |
| Mutiple hidden charges (annual, maintenance etc.) | No hidden charges as such |
| Interest rates are high | Interest rates are low to negligible |
Upward trend continues
The access to credit without credit score makes BNPL services a great alternative to credit cards. Moreover, faster checkouts at e-merchants, attractive deals, and the general preference of digital payment over cash, are pushing the trend upwards even further.
Not surprising how LazyPay, a BNPL product by PayU, witnessed a 300% increase over the last festive season in India. The demands for food and beverages, travel, and entertainment have been the highest among its 40+ merchants. With LazyPay facilitating five million transactions every month through its platform in 2021, its target is to acquire two million new consumers by 2023. Make the best of the BNPL trend by getting on LazyPay today!
