Buy Now Pay Later
A lending or a payment service
BNPL (Buy Now Pay Later)
The credit limit for BNPL is very low as compared to a normal credit card limit.
BNPL billing cycle is usually 15 days and the repayment window is 5 days from the bill generated date.
Customer Centric Features
Pay online on supported merchants
Pay utility bills with the provided credit line
15-day zero-interest repayment cycle
Discounts and offers on merchants
No KYC documentation required
It helps to build a credit score
Benefits for merchants
Builds customer trust
Attracts new customers
Generates more business from existing customers
Basically, it increases customer conversion and retention.
Merchants tailor solutions
End Use
Open
Locked
Repayment
EMI
Bullet
Interest
Subvention (paid by merchant)
Customer/borrower
BNPL Variants
Its all about permutation and combination of End use, Repayment and Interest.
Locked + EMI + Subvention
Locked + Bullet + Subvention
Above mentioned are the most common one used pay LazyPay, Simpl, Paytm Postpaid, Amazon Pay Later etc.
Where as there is other side as well i.e. credit to merchant which is been used by Bharatpe & Paytm. Now Phonepe & Gpay also following the same.
Open + EMI + Borrower (merchant)
Open + Bullet + Borrower (merchant)
From lender point of view it help them to
Acquire new customer
Scale the portfolio
Cross sell
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