Festive Season: Amazon and Flipkart have started Buy Now Pay Later (BNPL) scheme in their annual sale. This is a credit card option.
New Delhi. The festive season is going to start from Navratri. Companies are also ready to woo customers in this festive season running till Dussehra-Diwali, especially e-commerce companies have special offers in their annual sale. ) have been removed.
Amazon and Flipkart have started Buy Now Pay Later (BNPL) scheme in their annual sale. This scheme is proving to be an alternative to credit cards. During the sale, people often use credit cards due to lack of cash and buy the goods they want on easy monthly installments. But for those who have neither money nor credit card, ‘Buy Now, Pay Later’ (BNPL) gives this facility. Let us know which is the best option between credit card and BNPL…
The share of Buy Now Pay Later has increased rapidly,
this facility is provided by both the e-commerce giants in collaboration with the lending companies and its use has increased rapidly during the pandemic. In many cases, people use them even after having a credit card. Goldman Sachs says that it is the fastest growing medium of online payment. Its share was 3 percent in 2020, which will increase to 9 percent by 2024.
Get interest free loan from BNPL
Buy Now, Pay Later (BNPL) is an option to avail instant loan. This loan is also such in which interest is not paid. Rahul Singh, who oversees the e-commerce business, says that in this, the customer does not have to pay a single penny at the time of checkout for online or offline purchases. Not only this, there are also many payment options in it. Pankaj Bansal, Chief Business Officer, BankBazaar, says that to start this facility, you will have to go through a one-time KYC (Know Your Customer) process. However, the company or institution providing the facility of BNPL can look at the credit score and credit profile of the consumer before providing this facility. There are many companies providing BNPL facility like Lazypay, Capital Float, ZestMoney etc.
BNPL facility to small workmen
Credit cards are generally available to only those customers who have a good credit score i.e. CIBIL. But youth with small credit history and small workmen with irregular income can get the facility of BNPL. Also, it takes less time to start it. Hence, Buy Now has emerged as the preferred choice of Pay Later Loans amongst the youth and savvy consumers of the digital world. These consumers are also using it to buy essential goods.
Still not accessible like credit cards Not
all retailers are offering this option at this time. Also, different online and offline retailers offer this facility in association with different lending companies. Compared to this, the advantage of credit cards is that the same card can be used with multiple retailers. Also, the credit card can be used for payments other than purchases as well.
No offers like reward points and cashback, but interest rates are low in
credit cards, rewards, promotional offers, cashback etc. are available, whereas Buy Now Pay Later is not all that. In BNPL, you usually get 15 to 45 days to repay the amount, after which interest is charged at an annual rate of 0 to 26 percent. Credit cards give you 30-40 days for payment, after which 24 to 48 per cent interest is charged annually.
Credit card is better if you want to earn rewards
If you are unable to get a credit card due to low credit score or short credit history, then BNPL can be the right option for you. Similarly, if you want to earn reward points, then a credit card is perfect. However, those who wish to make late payments instead of using credit cards can opt for BNPL. But before choosing Buy Now Pay Later, see how the credit inquiry is being done. Some BNPL plans will make strict inquiries about you from the bureaus every time you choose them. This can damage your credit score.
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