which bnpl is best?

There are a number of Buy Now Pay Later apps in India. They offer credits of up to Rs.5 lakhs to eligible borrowers at low interest rates. Your credit limit and interest rates are based on your credit score and anyone with a decent credit score can get a good credit limit instantly. The interest rates on these loans are very low and are charged on a daily reducing basis. So you can save on interest rates as and when you make payments.

Today, we will discuss 6 of the top Buy Now Pay Later apps in India that offer a wide range of credit options and other benefits to customers. Before that, let us briefly look at what BNPL is and how it works.

Buy Now Pay Later (BNPL) is a financing option that provides eligible shoppers with an instant credit limit based on their bank account and past purchases. The credit score is considered for credit, but several other factors are also taken into account. As a result, users with lower credit limits can also benefit from this scheme. The credit limit available for use in making purchases on the e-commerce website and in retail stores. This money is typically repaid interest-free in 30 days. Users can also pay it back in three, six, nine, or twelve simple EMIs at a low interest rate.

CashE is one of the most straightforward Buy Now Pay Later lending options on the market. A fantastic credit limit is obtained through a simple two-step account activation process. Simply enter your basic information and your credit limit will be displayed on your CashE app immediately. Check CashE BNPL below:

By far the most popular BNPL platform for online shoppers is Zest Money. They work with over 1.5 lakh stores across India and provide credit limits of up to Rs.2 lakh. Here are some of the reasons why people prefer ZestMoney BNPL:

Amazon Pay Later is widely used by most Indians due to its online presence. Here are some things to keep in mind about Amazon Pay Later:

LazyPay is more popular among shoppers because it allows users to pay using UPI at merchant locations.

Mobikwik's BNPL service is referred to as 'ZIP.' It is accessible via the Mobikwik mobile app. Here are some of its key features:

Flipkart Pay Later is a well-known BNPL app in India. It enables users to make purchases both online and in stores without making a down payment. They simply need to pay for their purchases within the next 30 days. Flipkart Pay Later provides instant credit to loyal app users. This program already has millions of participants, and more are being added on a monthly basis.

When you need money, a loan is often your only option. But a loan comes with strings attached: you'll have to pay interest, and you'll have to make payments. That's when you turn to buy now pay later, an easy way to get extra money without having to make any payments for a set period of time.

With affordable interest rates and flexible repayment options, BNPL can be a lifesaver when you are in need of a little extra cash. And because BNPL is a short-term loan, you won't have to worry about the loan being a long-term burden. The credit score requirements are also easier to meet than those for a traditional loan.

FAQs of 6 Best Buy Now Pay Later Apps in India 2022:

1:What is Buy Now Pay Later?

Buy Now Pay Later is an instant credit option offered by many online lenders for a short period. The credit limit can be primarily used for shopping online.

2:Can I use BNPL anywhere?

Most platforms allow you to use the BNPL credit limit on any e-commerce website. However, a few brand specific BNPL facilities can be used on their platform only. Like Amazon Pay Later or Flipkart Pay later.

3:How much credit limit can I get under BNPL?

Lenders are now offering BNPL credit limits of up to Rs.5 lakhs, based on the customer eligibility, income, online shopping history, and credit score.

4:How do I get approved for a Buy Now Pay Later facility?

You can sign up for any of the BNPL credit options on their website. You can also lookout for offers at the time of checkout on leading e-commerce apps.

Consumers across the globe are embracing BNPL as an alternative to bank credit cards and loans. It's a way to manage cash flow, divide hefty costs into manageable installments, and satisfy the need for instant gratification with the click of a button.

The appeal is palpable, particularly among younger generations who are cautious about debt but also engaged in e-commerce. From a business perspective, BNPL offers a value proposition. Retailers and e-commerce platforms utilize these services to enhance the customer experience, increase sales conversion rates, and attract a broader base.

Many businesses use installment payment software to provide BNPL options to their customers. They cater to the “I want it now”' economy without adding immediate financial burden on their customers, instilling brand loyalty and promoting repeat purchases. Let's look at exciting BNPL statistics to understand the concept and how the market and users react.

The BNPL concept means consumers can purchase goods and pay over a period of time. Let's delve into the world of BNPL, with some of the top industry statistics shaping this revolutionary trend.

The buy now, pay later system has emerged as a game-changing force on the global stage. No longer confined to specific regions or demographics, it's reshaping retail and e-commerce worldwide.

Below are global market statistics about how BNPL is redefining the future of financial transactions across continents.

The BNPL phenomenon isn't just about enormous market valuations – it's also about the people using these services. Millions of individuals around the globe have embraced this innovative financial solution, altering the course of e-commerce and brick-and-mortar retailers alike.

In the BNPL arena, understanding the demographics behind the growing statistics leads to understanding the seismic shift in consumer finance.

The explosive growth of the BNPL industry isn't merely a tale of market values and user demographics. It's a story of preferences, choices, and the shifting dynamics of consumer behavior. Let's shed some light on the motivations fueling the trend.

The BNPL revolution isn't just transforming how you pay. It's also changing what you buy. As BNPL services become increasingly popular, they profoundly influence consumer purchasing patterns.

As the BNPL phenomenon continues its rapid expansion, its influence on the lending landscape promises to be profound. Let's read about trends, potential shifts, and exciting prospects in the BNPL revolution.

BNPL's adoption across a diverse range of consumers and the surge in partnering businesses indicate that BNPL is more than just a fad. It's a transformative financial trend shaping the future of retail and e-commerce.

View these statistics within a broader context. The potential benefits for both businesses and consumers are substantial, but so are the potential risks and challenges. As with any financial service, understanding the terms and potential pitfalls is key.

As BNPL continues its trajectory, businesses must strategically weigh the potential increase in sales against the costs associated with these programs. Consumers need to responsibly navigate these services, ensuring they understand the terms of their agreements and can comfortably manage their payments.

• Top BNPL Apps in India.
• Paytm Postpaid.
• OlaMoney Postpaid and Wallet.
• Freecharge Pay Later.
• Flipkart Pay Later.
• Amazon Pay Later.
• ePayLater.
• MobiKwik ZIP.

But there has to be a catch, right? Well, not BNPL platforms have the same requirements, rates, and fees. Before you agree to make a purchase using BNPL, you should be aware of how it works and how it could impact your finances.

To help make your decision a little easier, the Fortune RecommendsTM editorial team reviewed a few of the most popular BNPL platforms. We weighed annual percentage rates (APRs), late fees, loan terms, mobile app ratings, and more to help you decide if buying now, and paying later is worth it. (Read our full methodology here.)

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Our top 5 picks*

*This section last updated March 24, 2023

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Here’s our rundown of the top 5 BNPL apps and services, including the key figures you should know before you use one. (Note: eligibility requirements, fees, and other numbers in our list below are up to date as of March 24, 2023, and are subject to change.)

About: Sezzle was first launched in 2016 and offers BNPL services to more than 40,000 merchants, offering both in-store and online payment options for customers hoping to boost their purchasing power.

If you fail to make a scheduled payment, you may be charged a reactivation fee of up to $15 should that payment be late by more than two days.

Good for those who want to build credit. Sezzle not only offers the longest repayment option on our list, but it also offers a unique perk that most BNPL platforms do not: the ability to have your payment history reported to the credit bureaus. When you upgrade from a standard Sezzle account to “Sezzle Up,” your payment history will be reported to all three major credit bureaus—Equifax, Experian, and TransUnion. At the end of each month, the platform will review the overall standing of your account, including your outstanding balance and payment status. That month-end standing is then reported to the credit bureaus. Sezzle has an average rating of 4.75 across both app stores and had one of the highest customer service scores on our list.

About: Zip was founded in Australia in 2013, and provides BNPL services to consumers, merchants, and businesses across the globe. The platform currently offers interest-free credit across a directory of more than 18,500 merchants.

If your installment payment is late, you may incur an initial late fee of $7.

Customer support representatives can be reached via phone every day of the week between 8:00 a.m. and 10:00 p.m. EST, as well as via live chat Monday through Sunday from 7:00 a.m. to  11:00 p.m. EST, and via email.

Good for those who want to pay off their purchase sooner, rather than later. Zip ranked highly on our list for its interest-free model and for having one of the lowest late fees on our list. The app also boasts an average mobile app rating of 4.4 on Google Play and the App Store. Using Zip has zero impact on your credit score and you can use the service almost anywhere Visa is accepted. This platform did have the shortest repayment timeline out of all of the platforms we reviewed. When using this service, customers will split their purchase up into four installments over the course of six weeks. For customers who are looking to finance a larger purchase, this could put a strain on their budget.

About: Klarna was founded in Stockholm, Sweden, in 2005 and now serves 150 million consumers across the globe, across more than 500,000 merchants in 45 countries.

The lesser of $7 or up to 25% of your total purchase amount may be charged if any scheduled payment remains unpaid after 10 days.

Klarna representatives can be reached 24/7 via phone or chat.

Good for those who want to finance a larger purchase. Klarna made our list for its 24/7 customer service options, wide range of repayment options, and its credit limit (or lack thereof). Klarna offers 4 different payment options: Pay in 4, Pay in 30 days, Pay over time, and Pay now. For the sake of our methodology, we weighed Klarna’s most popular payment product: the Pay in 4 option. This route allows users to split payments up into 4 interest-free payments that will be paid once every two weeks.

Another perk: When you use Klarna, there is no predefined spending limit. Instead, a new automated approval decision will be made each time you use the service that will tell you what your credit limit is. Consumers who are managing their credit responsibly may see an increase in their purchasing power over time, which could make it easier to cover larger purchases. Klarna’s app, which has an average mobile app rating of 4.6, also offers a rewards club that will allow you to earn points on your purchases, a place to store loyalty cards from your favorite stores, price drop notifications, and more.

About: Afterpay was founded in Australia in 2014 and currently serves millions of customers and businesses around the globe. The platform currently offers BNPL services to more than 15,000 merchants.

Afterpay charges an initial $10 late fee if a payment is not processed on or before the due date, and a further $7 if the payment remains unpaid 7 days after the due date. For each order below $40, a maximum of one $10 late fee may be applied per order. For each order of $40 or above, the total of the late fees that may be applied are capped at 25% of the original order value or $68, whichever is less.

Afterpay representatives are available to answer any questions you have via email or in-app chat live chat which is available 24/7, although response times may vary.

Good for those who want to shop on their phones. Afterpay snagged a spot on our list for its interest-free payment model and for having a competitive mobile app rating. With this platform, you can shop your favorite retailers directly from the app, receive curated round-ups, and keep up with the latest deals. What’s more—you can earn rewards when you shop using Afterpay. The platform does charge late fees for missed payments, although it’s capped at $10 or 25% of the original order value.

About: Paypal is a notable name in the mobile payment app space, and its services have expanded to include BNPL services across $325 million merchants worldwide.

PayPal does not charge any late fees.

Paypal representatives can be contacted in-app via the message center or by calling the customer service line between 6:00 a.m. PT and  6:00 p.m. PT Monday through Sunday.

Good for those who want a greater selection of merchants to choose from. Paypal’s “Pay in 4” and “Pay Monthly” BNPL plans took the final spot on our list for having the greatest selection of merchants to choose from. In addition to its wide network of partnerships, Paypal offers flexible loan terms, zero late fees, and purchase protection feature which will reimburse you if the item you ordered doesn’t arrive or doesn’t match the original description. The BNPL option offers two plans, one for purchases between $30–$1,500 and a monthly financing plan for purchases between $199–$10,000. Users can enroll in autopay under both plans.

Buy-now, pay-later platforms can make it easier to afford purchases that are just outside your budget by breaking down the lump sum cost into smaller, easier to manage installments. These installment loans may come with interest and fees that vary from platform to platform. Typically, merchants will partner with a buy-now, pay-later platform and offer this as a payment method at checkout.

Should you choose to go this route, you’ll be directed to that platform’s site where you’ll need to create an account and provide personal identifying information (PII) such as your Social Security number (SSN), date of birth, contact information, and more. In many cases, the platform will use this information to perform a soft credit check (which doesn’t impact your credit score) to determine whether or not to approve you for a line of credit and determine your credit limit, APR, and more.

If you’re considering using a buy-now, pay-later platform to finance a purchase or multiple, there are a few key factors you’ll want to consider:

Buy-now, pay-later apps don’t generally report payment information to the credit bureaus, although there are apps that do. However, this does not mean late payments won’t incur hefty fees or be sent to collections if you do not adhere to the terms of your loan. And, it also means that a positive payment history will not help you build credit over time, in most cases.

Approval will be determined by the lender you’re choosing. Some buy-now, pay-later platforms may extend you a line of credit even if you have a lower credit score, but this may come at the cost of a higher APR or a lower credit limit.

Some downsides of buy-now, pay-later services include late fees, the temptation to overspend, and potentially steep interest rates.

The Fortune RecommendsTM team compared 7 of the most popular buy-now, pay-later apps and services to help you find the best platform for your borrowing needs. To come up with our final list, we ranked the best apps and exchanges on the following categories and weighted each category as set forth in the percentages below: