Cash crunch is nothing new but the buy now pay later (BNPL) products and scheme is catching eyeballs. And this has been driven by the COVID-19 pandemic to some extent as people are keen than ever to save up for rainy days. Many BNPL products in the market have emerged to solve this issue.
According to a report by Allied Market Research, the global BNPL market generated $90.69 million in 2020, and is projected to reach $3.98 trillion by 2030 – witnessing a CAGR of 45.7% from 2021 to 2030. Affordable and convenient payment services of buy now pay later platforms and growth of the e-commerce industry across the globe drive the growth of the global buy now pay later market.
This has also been driven by major payment solution providers such as Visa and MasterCard having recently announced their partnership to offer affordable installment financing services, which accelerate the growth of the market during the COVID-19 outbreak. Increase in customer spending on health treatment, rise in cost of luxury electronic products, and increase in use of online payments services are some of the important factors that boost the growth of the BNPL market.
BNPL products are convenient as we can get instant access to credit, we can also monitor all transactions diligently and choose smart repayment tenure. Here is list of some platforms that have made their mark in helping people tide over month-end liquidity issues and help manage expenses smartly by offering easy and flexible repayment options:
Fintech startup, Uni recently launched its pay later card called Pay 1/3rd – it is the longest interest-free credit period card in the market. The card automatically splits the transactions into 1/3rd, allowing consumers to pay their monthly spends in three parts over three months for no extra charges.
Or you could pay upfront and get 1% cashback. Pay 1/3rd provides a credit line in the range of Rs 20,000 to Rs 6 lakh. For the Pay 1/3 card, one can download the app from Play Store and then sign-up for the card through a quick process. The digital card is activated immediately, while the physical card is delivered within two to three days.
Founded in 2016, Simpl is a short-ticket mobile-first lending platform that offers easy credit at points of sale and eCommerce checkout. Aiming to reimagine the trust-based relationship between merchants and customers to avail easily accessible line of credit.
Simpl gives users a custom credit limit in the range of INR 2K – INR 20K. This limit is typically used for eCommerce purchases or at the retail checkout. Simpl prefers to stick to low ticket sizes since it involves no documentation. It claims zero time lag for accessing credit.
This company is focused on India’s youngsters aiming to build a smart, simple and transparent financial platform to redesign the financial experience for the millennials. It challenges the traditional credit card ecosystem by offering simplified credit solutions to consumers. Slice provides millennials with a credit line starting from Rs 10,000 up to Rs 10 lakh.
It has a smooth onboarding process and the app is designed to be highly interactive, intuitive and relatable to millennials and Gen Z – helping them demystify the complexities of traditional banking. The Slice super card also provides up to 2% rewards on every card transaction and is instantly redeemable to cash. Through the slice app, once can have complete control of their card – track their expenses, and repayment schedule and the card can also be used across millions of merchants as it runs on the Visa network.
Ola Money Postpaid
This is a fast and easy digital credit payment system from Ola which allows users to pay for their Ola rides and various other online services. It is said to be an effort by the company to wean users off cash payments while also doing away with wallet recharge.
Ola offers this credit facility to the customers without any additional charges and aims to offer its customers a hassle-free payment option. It allows users to accumulate rides on Ola and then collectively make the payment for the 15 days of charges in one go.
LazyPay is a payment service that has been built to provide users with an easy payment option for their day-to-day purchases. LazyPay offers ease of transaction at multiple merchants. Users have the flexibility to club all LazyPay transactions and make consolidated payments through the LazyPay dashboard.
A consolidated invoice summary is generated on the 1st and 16th of every month. Users can pay back the amount right after the transaction until the next due date to avoid late penalty charges. The due date is three days after the invoice summary generation.