Buy Now, Pay Later – A New Trend in the Lending Ecosystem

With the digital medium being the preferred choice for shopping and the increase in spending, items that give immediate gratification have made ‘buy now, pay later,’ or BNPL, a success. By partnering with financial institutions worldwide, sellers have also been making the process of buying as seamless as possible over the decades—from the invention of credit cards to converting purchases into EMIs instantly without any processing fee and now to BNPL. But how is BNPL different from the rest?

We at MEDICI define BNPL as the credit amount given to the user for certain amounts of days without any processing fee and interest rate. These credits enable the user to pay for their purchases upfront without any deduction in the bank account and gives them the convenience to pay with all their purchases together. The BNPL solution provider either charges an interest rate if the user cannot pay the credit amount within a specified number of days or provides easy EMI options.

In India, like the rest of the world, BNPL is a very new concept. BNPL has evolved from the EM …