Close Menu
JustwebworldJustwebworld
  • Astrology
  • Business & Finance
    • Cryptocurrency
    • Make Money
    • Entrepreneur
    • Brands
    • Companies
    • Personal Finance
      • Banking
      • Insurance
      • Trading and Investing
  • Tech
    • Computing
    • Cybersecurity
    • Electronics
    • Android
    • Apple
    • Gadgets
    • Social Media
    • Mobile Apps
    • Softwares
  • Education
    • Vocabulary
    • Abbreviations
    • General Knowledge
    • Writing & Translation
  • Lifestyle
    • Beauty & Cosmetics
    • Fashion & Style
    • Furniture & Decor
    • Luxury
    • People & Relationships
    • Pets and Animals
    • Shopping
    • Parenting
    • Gardening
    • Birthdays
  • Health
  • Travel
  • Auto
  • Gaming
  • Food
  • Entertainment
  • Sports
Facebook X (Twitter) Instagram
Monday, May 19
  • About
  • Contact Us
  • Advertise With Us
  • Disclaimer
  • Terms & Conditions
  • Privacy Policy
JustwebworldJustwebworld
  • Astrology
  • Business & Finance
    • Cryptocurrency
    • Make Money
    • Entrepreneur
    • Brands
    • Companies
    • Personal Finance
      • Banking
      • Insurance
      • Trading and Investing
  • Tech
    • Computing
    • Cybersecurity
    • Electronics
    • Android
    • Apple
    • Gadgets
    • Social Media
    • Mobile Apps
    • Softwares
  • Education
    • Vocabulary
    • Abbreviations
    • General Knowledge
    • Writing & Translation
  • Lifestyle
    • Beauty & Cosmetics
    • Fashion & Style
    • Furniture & Decor
    • Luxury
    • People & Relationships
    • Pets and Animals
    • Shopping
    • Parenting
    • Gardening
    • Birthdays
  • Health
  • Travel
  • Auto
  • Gaming
  • Food
  • Entertainment
  • Sports
JustwebworldJustwebworld
Home » Business & Finance » Personal Finance

Buy Now Pay Later: A Credit Blessing Or A Debt Trouble?

Vidya MenonBy Vidya Menon Personal Finance
Facebook Twitter LinkedIn Telegram Pinterest Reddit Email WhatsApp
Follow Us
WhatsApp Telegram
Share
Facebook Twitter LinkedIn Pinterest Reddit Telegram WhatsApp

As the trend of online shopping continues to rise incessantly, more and more customers are looking for easy and flexible payment options. Due to this, there has been a meteoric rise in BNPL popularity over the last few years, bringing about a disruption in the financial sector of the country.

Big e-commerce companies like Amazon and Flipkart, major financial institutions, and leading fintech players such as Paytm, Freecharge, Mobikwik, etc. have also launched their BNPL services lately.

Buy Now Pay Later - BNPL

Though personal loans and credit cards have been available in the market for long, easy availability, convenience, and flexibility are the key differentiating factors that make BNPL more appealing to customers, especially millennials and GenZ.

But like every other financial borrowing option, it is equally essential to use BNPL wisely and cautiously. Directly or indirectly, it is promoting consumer debt and increasing the reliance of millennials and GenZ on extra credit for lifestyle up-gradation and instant gratification.

Table of Contents

Toggle
  • What is Buy Now Pay Later?
    • How BNPL works?
    • Benefits of BNPL
    • The Downside of BNPL
    • Long Story Short

What is Buy Now Pay Later?

Buy Now Pay Later is a type of credit line that enables you to purchase whatever you want/need on the current date and pay for it later as a lump sum or in instalments. It provides interest-free credit with no hidden fees/charges and is easier to get sometimes even with no credit history.

However, it is important to note that, like with any other loan, your credit behaviour is recorded & reported for BNPL as well. Any default in repayment of BNPL dues adversely affects your credit score and attracts penal charges.

Also Read: Difference Between RD Calculator and Fixed Deposit Calculator Difference Between RD Calculator and Fixed Deposit Calculator

How BNPL works?

To avail BNPL services, you are required to complete KYC formalities and provide a few details to the offering company. Once you’ve been approved and allotted a credit limit, you can then use this BNPL credit to shop online/offline, pay bills, order food, and more.

All that you need to do is select the BNPL option on the checkout page to complete the transaction. A consolidated bill for all your spending is generated once a month which you need to pay by the set due date. The average interest-free period offered by most lenders varies between 30 and 45 days.

Benefits of BNPL

BNPL came out as a blessing in disguise for millennials and GenZ during the pandemic. When there came a wave of lay-offs, many were struggling to get credit due to a lack of formal credit history. With BNPL by their side, millennials and GenZ can build their credit score and prepare for big-ticket borrowing options if the need arises in the future.

On the other hand, e-commerce and retail companies have gained huge traction due to BNPL. Improved customer retention, better conversions, and refined user experience are some of the benefits these companies have been able to extract via BNPL.

Financial institutions and fintech companies have been able to attract more customers from across all age groups through BNPL.  And this has provided even the new fintech companies with an opportunity to build a strong, loyal, and diverse customer base.

The Downside of BNPL

While BNPL seems like an astonishing option on its face but the fact is that it’s promoting consumer debt and boosting the purchasing power of millennials and GenZ at the expense of their future income. The ‘pay later’ trigger is too tempting which often leads to impulsive spending, and sometimes overspending.

Also Read: File ITR Online | Income Tax Return Filling Process for Beginner (Guide) File ITR Online | Income Tax Return Filling Process for Beginner (Guide)

Also, a lesser-known fact about BNPL is that most lenders levy high penalty charges if the dues are not cleared on time. In addition, most BNPL lenders don’t offer any flexibility with the payment date. Thus, increasing the risk of default and late payment.

Long Story Short

Whether you think of BNPL as a blessing or otherwise, the key takeaway from the above facts is to have financial discipline. Smart budgeting, efficient spending, and better planning should be the focus while utilizing any extra line of credit, be it a loan, credit card, or BNPL.

On the regulatory front, the impeccable growth in the BNPL sector has caught the attention of regulators and we might soon see some effective regulations in place for its future success.

Follow on WhatsApp Follow on Telegram
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram WhatsApp Copy Link
Previous ArticleTop 15 South Indian Actors Of All Time
Next Article How to Sell Your Used Polycom Phones
Vidya Menon

Vidya Menon is a talented content writer who brings ideas to life with clarity and creativity. She writes across diverse topics, making complex subjects easy to understand and engaging to read. With a passion for storytelling, she delivers content that informs, inspires, and leaves a lasting impact.

Related Posts

Best Alternatives to Balance Transfers | Smart Ways to Pay Off Debt Faster!

Are Tax Saving FDs Worth the Lock-In Period?

How to Use a Current Account to Manage Cash Flow

Easy Zulily Credit Card Login: Manage Bills, Rewards & More

Top Myths About Mutual Funds In India: Separating Fact From Fiction

Are The Expensive Premiums Of Senior Citizen Health Insurance Plans Worth It?

Leave A Reply

Categories
Archives

Jose Alvarado NBA 2025: Inspiring Journey, Impressive Stats, Big Contract & Puerto Rico Pride

Who is Hazel Brugger? Top Swiss Comedian, Eurovision Host & Comedy Queen of Europe

Luke Kornet Full Player Profile | Age, Height, Net Worth, Career Stats 2025

Who Is Brent Faiyaz? Age, Songs, Albums, Net Worth & Tour 2025

FaZe Rug Net Worth, Age, Girlfriend, House & Career | Must Read

Happy Father’s Day Wishes & Quotes | Heartfelt Messages, Sayings & Captions for Dad 2025

Why Stewart Vickers Is the Best SEO Expert in the World

Diljit Dosanjh : Latest Songs, Movies, Net Worth, Concerts & Full Biography

Katie Ledecky: Olympic Gold Queen | Records, Career, Net Worth & More!

Best New Clinic Opening Wishes | Heartfelt Messages, Quotes & Blessings to Celebrate Success

DMCA.com Protection Status
Quick Links
Age Calculator
Angel Number Calculator
Case Converter
Sudoku Online
Word Counter
Love Calculator
Useful Links
Number to Words
Period Calculator
Yes-No Picker Wheel
Demon Name Generator
Kingdom Name Generator
Harry Potter Name Generator
Helpful Resources
Colors Name In English
Best Computer Brands
WhatsApp Web
Most Beautiful Beaches
Tesla Cybertruck Review
Richest Actors in the World
Explore More
Good Morning Handsome
Best English Songs of All Time
Cricket World Cup Winners
Ways to Say Rest In Peace
Britain’s Got Talent Winners
American Idol Winners
Facebook X (Twitter) Instagram Pinterest YouTube Tumblr LinkedIn WhatsApp Telegram Threads RSS
  • About
  • Contact Us
  • Advertise With Us
  • Disclaimer
  • Privacy Policy
  • Terms & Conditions
  • Web Stories
Copyright © 2012-2025. JustWebWorld - All Rights Reserved. | Sitemap

Type above and press Enter to search. Press Esc to cancel.

×

👇 Bonus Reads for You 🎁

How to Get Online Loans
How to Get Online Loans Within One Week?
The Fintech Revolution
Regulatory Updates: How Governments Worldwide Are Adapting To The Fintech Revolution
Building A Good Credit History
Importance Of Building A Good Credit History And Which Cards Are Best To Use
Online Gold Loans
An Insight About Online Gold Loans