In recent years, a new way to shop has gained popularity in India. It’s called Buy Now Pay Later or BNPL. If you have shopped online, you have probably seen the option to get your product now and pay for it later in easy installments. Sounds convenient, right? But how does it really work, and is it a good idea for everyone?
In this blog, we will break down everything you need to know about Buy Now Pay Later India, its benefits, risks, and how you can use it wisely.
What is Buy Now Pay Later?
Buy Now Pay Later is a payment method that allows you to buy a product or service and pay for it over time instead of paying the full amount upfront. You can either pay in a few weeks or spread the cost over several months, often with no interest if you pay on time.
BNPL is especially popular on online shopping websites. Whether you are buying clothes, electronics, furniture, or even booking travel, many buy now pay later websites offer this option at checkout.
How Do Buy Now Pay Later Apps Work?
In India, there are many buy now pay later apps that partner with e-commerce websites and retailers. Some popular pay-later apps include:
- ZestMoney
- LazyPay
- Simpl
- Amazon Pay Later
- Flipkart Pay Later
- Paytm Postpaid
Here’s how they usually work:
- Signup: You download the app or activate the feature on a shopping site.
- Credit Check: Some apps do a soft credit check or check your income before approving a limit.
- Shopping: When you shop, you select the BNPL option at checkout.
- Repayment: You pay back the amount in installments: weekly, bi-weekly, or monthly.
Most apps offer short-term interest-free periods. However, if you miss a payment or delay it, late fees or interest charges may apply.
Why is Buy Now Pay Later Growing in India?
There are a few reasons why Buy Now Pay Later India is becoming so popular:
- Young shoppers: Many young adults don’t have credit cards, so BNPL gives them access to short-term credit.
- Quick approvals: Unlike personal loans, BNPL approvals are faster and require less paperwork.
- Cash flow flexibility: You can get the product now and pay later when your salary comes in.
- Growing online shopping: With more Indians shopping online, buy now pay later websites are offering this as an easy checkout option.
Pros of Using Buy Now Pay Later
BNPL can be useful when used responsibly. Here are some key benefits:
1. Easy to Access
You don’t need a credit card or a high credit score to get started. Most buy now pay later apps just ask for basic KYC details.
2. No Interest (If Paid On Time)
Many services offer 0% interest for short periods, like 15 or 30 days. This makes it more affordable than using a credit card or personal loan.
3. Better Budgeting
Instead of paying a big amount at once, you can spread the cost into smaller parts and manage your monthly budget better.
4. Convenience
You can shop anytime, even if you don’t have money in your account immediately. This is especially useful for unexpected needs.
Risks and Downsides of BNPL
While BNPL sounds easy, it’s important to understand the risks:
1. Hidden Fees
Some pay later apps charge late fees, processing charges, or interest if you delay payment. Always read the terms before using.
2. Overspending
Since you don’t feel the impact immediately, you may end up buying more than you can actually afford.
3. Debt Trap
Using multiple buy now pay later apps without proper tracking can lead to a situation where you’re juggling many payments each month.
4. Credit Score Impact
Missing a payment can affect your credit score. Some BNPL services report to credit bureaus.
Should You Use Buy Now Pay Later Services?
BNPL is not good or bad, it depends on how you use it. Here are some tips to decide if it’s right for you:
- Use it for needs, not wants: It’s okay to use BNPL for essentials, but avoid using it for impulsive shopping.
- Track your spending: Keep a list of all your BNPL purchases and due dates.
- Don’t use many apps: Stick to one or two reliable buy now pay later apps to avoid confusion.
- Read terms carefully: Always check repayment terms, interest, and late fees.
If you are disciplined and use it to manage cash flow, BNPL can be a helpful tool. But if you already have debts or tend to overspend, it might be best to avoid it.
Read More: Top Fintech Trends in 2025 and How BigMudra is Leading the Way
Best Buy Now Pay Later Apps in India
Here’s a quick look at some of the top apps offering BNPL services in India:
| App Name | Key Features | Interest-Free Period |
| ZestMoney | EMI plans, wide acceptance | Up to 3 months |
| Simpl | Pay in 15 days, no interest | 15 days |
| LazyPay | Pay in 15 days or convert to EMI | 15 days |
| Amazon Pay Later | Auto-approved limit for Amazon shopping | Up to 1 month |
| Flipkart Pay Later | Buy now, pay next month | 30 days |
These apps are available on both Android and iOS and can be linked to popular shopping sites for smooth checkouts.
BNPL vs Credit Cards: Which is Better?
People often compare Buy Now Pay Later with credit cards. Here’s how they’re different:
| Feature | Buy Now Pay Later | Credit Cards |
| Approval | Easier, fewer checks | Needs strong credit history |
| Interest | Often interest-free short-term | Interest if not paid in full |
| Credit Score | May or may not affect score | Affects score directly |
| Fees | Late fees possible | Late payment + annual fees |
BNPL is more flexible for people without a credit history. But for long-term credit needs and rewards, credit cards may offer better value.
Final Thoughts
Buy Now Pay Later India is growing fast. With easy access, flexible payments, and increasing popularity, it’s becoming a preferred choice for many online shoppers.
But like any financial tool, BNPL should be used wisely. It’s not free money, it’s a short-term loan. If you plan your budget, choose trusted buy now pay later apps, and pay on time, it can help you manage your purchases smartly.
However, if you find yourself constantly delaying payments or struggling to repay, it may be a warning sign to pause and rethink your spending habits.
BNPL is a helpful option, but only if you are in control of your finances.
FAQs
What is the meaning of buy now pay later?
Buy Now Pay Later (BNPL) is a payment option that allows consumers to purchase items immediately and pay for them in installments over time, typically without interest if payments are made on schedule. It’s essentially a short-term financing option offered at the point of sale, both online and in physical stores.
What is the best buy now pay later company?
The “best” BNPL company depends on your specific needs. Popular options include Affirm, Klarna, Afterpay, and PayPal’s “Pay in 4.” Each offers different terms, merchant availability, and approval requirements. Affirm typically offers longer payment plans, while Afterpay specializes in shorter payment schedules. Consider factors like payment flexibility, fees, merchant availability, and integration with your preferred shopping platforms.
What’s the easiest buy now pay later to get approved for?
Zip (formerly Quadpay) and Sezzle generally have more lenient approval requirements compared to other BNPL services. These platforms often approve consumers with lower credit scores or limited credit history. However, they may offer lower spending limits initially. Many BNPL services perform soft credit checks that don’t impact your credit score during the application process.
Is BNPL banned in India?
No, BNPL is not banned in India. However, in 2022, the Reserve Bank of India (RBI) implemented stricter regulations for BNPL services. The RBI clarified that loading prepaid payment instruments (PPIs) using credit lines would require proper licensing. This regulation affected some BNPL operations but didn’t ban the service entirely. Many BNPL providers continue to operate in India by partnering with banks or obtaining appropriate licenses.
