Buy now pay later vs credit cards! Which option is better

Credit card podcast by raman

Buy now pay later vs credit cards! Which option is better

Buy Now Pay Later (BNPL)is a payment option given by select online merchants and fintech companies to buyers for purchases they make. It is a short-term finance option that allows consumers to pay in installments or lump sum within a stipulated time period for any financial transaction.

The BNPL formula has tasted success which led to further introduction of this mechanism in a newer format such as BNPL card. BNPL cards are prepaid instruments with a credit line attached and it expands the available credit line to consumers beyond online platforms to include offline, point-of-sale touchpoints also.

For more information click on this link: https://cardinsider.imprint.to/post/tips-to-maximize-your-credit-card-rewards

Currently, there are quite a few players in this BNPL space such as LazyPay, Slice and Uni amongst others. These BNPL platforms offer the card facility to ease payment complexities for their consumers. BNPL cards are emerging as a powerful instrument and an alternative to paying from savings, credit cards. Individuals having limited credit options are also adopting it, reflecting a growing payment trend as Indians, especially young consumers, are increasingly opting for the solution for its convenience, accessibility and affordability.

How they differ in their interest-free credit period
While credit cards typically come with an interest-free credit period of up to 45 days, under BNPL the interest-free credit period is for mostly up to 15 days. However, certain BNPL lenders now offer up to 45 days of interest-free period. In fact, some ever offer longer interest-free periods. For instance, Uni, a BNPL lender ,provides its consumers using its Pay later card an interest free credit period of 3 months.