Best Buy Now Pay Later Apps in India

We all look for ways to save money and earn extra rewards in the form of cashback or reward points while shopping. In India, there has been a recent trend of people using Buy Now Pay Later (BNPL) services to make purchases online as well as offline.

BNPL services allow people to make a purchase and then spread the cost of that purchase over a period of time, usually interest-free.

There are several financial institutions or NBFCs which offer Buy Now Pay Later Account services. These apps are great for those who want to make small purchases over time and don’t have enough cash to pay.

Now the question is which is the best BNPL account in India. So, here we have compiled a list of the best pay-later apps in India to help you to choose better services.

However, first this first.

What is Buy Now Pay Later (BNPL) Services

Buy Now Pay Later (BNPL) is a type of financing, similar to a credit card or a term loan, that allows consumers to purchase items and defer payment on them.

This type of financing is often used for big-ticket items, such as furniture or appliances. Retailers typically offered Buy Now Pay Later (BNPL) plans in the earlier times where you make purchases of items and make payments every month.

But due to the rise in demand for online transactions, there are also many banks such as ICICI Bank, Axis bank, etc, in India that offer buy now pay later financing through apps to make transactions easier, convenient, and faster.

Therefore, the buy now pay later in India can be a useful facility if you need to buy something but don’t have the money upfront.

It’s also a popular choice for buying items on credit, as it can help to spread the cost and make it more manageable.

What is Buy Now Pay Later(BNPL) app

While to get the facility to buy now pay later services from banks you need to open an account in the banks, there is no such requirement for apps.

You can directly avail the BNPL services with the apps. However, you will need to complete an online KYC to avail these services. So, BNPL service may or may not be a bank or NBFC.

So, buy now pay later apps is a good option when compared to banks if you don’t want to open an account in banks.

Benefits of the Buy Now Pay Later(BNPL) app

There are several benefits to using buy now pay later apps. Some of the important advantages are:

Ease of Access

Buy now pay later apps are very easy and user friendly. You don’t need any fancy cards like credit cards, debit cards, forex cards, etc. You just need a smart phone with internet connection. You can avail this facility in most of the e-commerce websites in India with a simple click of button.

Less Documentation

Unlike credit cards, you don’t have to submit various documents such as bank statements, etc. and wait for receipt of credit card for days. You can avail the BNPL services within a few minutes with the help of apps.

Save Money

Many of the e-commerce websites have been offering great discounts or cash back if you avail the BNPL services. Such as Amazon Pay Later app offer discounts when you avail the facility on their website.

Interest free loan

Just like credit/debit cards, BNPL apps provide the benefit of interest free credit to its users which means you don’t have to pay for a purchase all at once.

This helps to manage your finances, as you can spread out the cost of a purchase over a month or can convert the purchase into simple EMIs.

What are the charges under Buy Now Pay Later Apps

Buy now pay later apps (BNPL) typically have no interest charges, but may have other fees, such as a deferred interest fee or a monthly service fee.

But, sometimes the lender partners of pay later apps charge a nominal convenience fee of 0% to 3% depending on the risk policy, on monthly spends made using pay later apps.

Also, for making payments on some particular categories, like paying rent or fees using the pay later facility, the user may be charged an additional convenience fee/platform fee which will be displayed at the time of making the transaction.

Therefore, it is important for the consumer to be aware of the terms and conditions of any pay later apps in India service which you use, as you may be charged fees for using it, even if you pay off your balance in full and on time.

It is important to note that using the pay later facility, helps you to build your credit score on a real-time basis. Therefore, it is important to pay on time by using the pay later facility.

Most Popular Buy Now Pay Later Apps in India

Now you know what BNPL apps are ? Advantages and disadvantages, etc. let’s discuss some of the most popular apps providing these services.

While there are hundreds of apps which provide BNPL services, only some of them are trustworth. Some of the most popular and best pay-later apps lists are given below:

1. Paytm Postpaid

Paytm postpaid is one of the best pay-later apps in India. You can get an instant spend credit limit of upto ₹ 60,000 without paying any activation fees.

There is a 0% interest fee on your monthly spends on different categories online or by paying through a QR scan code at merchant shops.

The loan facility is provided by the NBFC financial institutions Aditya Birla Capital and Fullerton India. There is no levy of monthly charges or convenience fees in the case of Fullerton India.

At the same time, there is a nominal fee charged by Aditya Birla capital on your monthly spending.

2. Amazon Pay Later

Amazon pay later app is one of the free Buy Now Pay Later Apps in India. You can activate the buy later facility within 60 seconds and can get a credit limit as per the lender partner credit line policy subject to the maximum limit of ₹ 60,000.

The best part of using Amazon’s pay later facility is that there is not any type of monthly charge or hidden charge for applying for the pay later facility.

You can use the available credit limit and pay easily next month before the due date on any type of purchase on the amazon app.

The loan facility is provided by the NBFC financial institutions Axio and IDFC First Bank.

3. MobiKwik ZIP

MobiKwik ZIP is also a pay-later app facility launched by MobiKwik and you can get a credit of upto ₹ 60,000 with a one-time charge levied on the first-month bill generated. You can enjoy a 0% interest facility by settling the bill amount on time.

The one-time charge is subject to the available credit limit but can range between ₹ 99 to ₹ 399 exclusive of GST.

With MobiKwik Zip, you can spend on your favourite categories and 1lac plus brands and the bill will be generated twice a month. You can enjoy the limit and pay anytime in a month

In MobiKwik ZIP, the loan facility is provided by three NBFC financial institutions Fullerton India and IDFC First Bank, and Lendbox.

4.ICICI pay later

ICICI pay later is one of the buy now pay later app in India. The credit facility is

offered by ICICI bank itself and a user can get a pay-later credit limit on a pre-approved offer basis. But the range can lie between ₹5,000 to ₹50,000.

You can use ICICI pay later facility only if you are an ICICI bank holder, and enjoy hassle-free spending with a credit line of 45 days.

For applying the pay later facility, users need to pay a one-time activation fee of ₹590. Additionally, a service charge of ₹118 is also to be levied on every ₹3,000 of monthly spending using the ICICI pay later facility.

Therefore, this can be a good facility for ICICI bank holders, but in terms of fees & charges, the pay-later facility can disappoint you in terms of high charges on your purchases.

5. Simpl Pay Later

Simpl is another popular buy now pay later app in India. This new-age app offers a range of features, such as zero-cost EMIs, instant approval, no-cost down payments, utility bill payments, and online shopping with popular brands in India.

It also offers discounted prices on a range of products from a variety of brands and provides instant cashback.

If you choose to use the simpl pay later facility, you need to pay your bill twice a month

6. ZestMoney

ZestMoney is one of the most popular buy now pay later apps in India.

Zest money helps users to break down large payments into smaller manageable payments over a period of 3 months to 12 months with 0% interest.

The credit limit will be decided once you upload your KYC documents and start the process of opting for a pay-later facility with ZestMoney.

Their lending connectivity is also very seamless as they have more than 15+ lending partners including Aditya Birla Capital, DMI finance, SMC finance, Tata Capital, DCB Bank, etc., offering the best pay-later apps facility.

Apart from the delay payment fee of ₹250, there are no other charges applicable for using this app.

More Buy Now Pay Later Apps

Apart from the above apps, there are also some popular apps which provide BNPL services to its users and which we are not able to cover in this article.

List of the apps are:

  • Flipkart Pay Later
  • CashE
  • LazyPay
  • Slice
  • Jupiter Edge Pay Later App
  • Freecharge Pay Later
  • Postpe
  • e-Pay Later

How to register on Buy Now Pay Later Apps

To avail the facility of BNPL services, you will need to register or sign up on these apps.

Step-by-step process to sign up

  1. Download the app from Play Store (Android) or App Store (iOS)
  2. Open the app and click on sign up/register.
  3. Enter basic details such as Name, date of birth, mobile number, email Id and password and click on submit.
  4. Your free account gets created.

Once you successfully sign up for the account, you can avail the facility of BNPL Services. However, to avail the services, you need to complete your KYC.

Documents required activation of Pay later Facility

The documentation process is very simple in all the pay-later apps, your pay-later application will process digitally with the requirement of the ONLY four basic things such as –

  • PAN Card
  • AADHAR card
  • Mobile Number
  • Email ID

Your PAN and AADHAR will be used to fetch credit reports from the Credit Bureau and personal details. The credit limit allotment amount will solely depend on the internal credit policy.

What are the disadvantages of Buy Now Pay Later Apps?

BNPL Services has many advantages for users who have control over their finances and just want to manage their money with ease. It could pose certain disadvantages for many users. Some the disadvantages are:

Encourages Impulse Buying:

The convenience of BNPL apps can encourage impulse buying, as users may be more likely to make unplanned purchases knowing they can delay payment. This can lead to financial instability and overspending.

Accumulation of Debt:

One of the significant risks is the potential to accumulate debt. Users might be tempted to make more purchases than they can afford, leading to a cycle of debt if they are unable to manage their repayments.

Interest and Fees:

While some BNPL services offer interest-free plans, others may charge interest or fees. Users should carefully read the terms and conditions to understand any additional costs associated with using the service.

Impact on Credit Score:

Some BNPL providers may perform a credit check before approving users. If users fail to make timely payments, it could negatively impact their credit score, making it more challenging to access credit in the future.

Hidden Charges:

Users should be vigilant about potential hidden charges or fees associated with BNPL services. Some apps may impose penalties for late payments or have other fees that users might not be aware of initially.

Is Buy Now Pay Later App (BNPL) Safe?

Because of the rapid adoption of BNPL apps and due to the unregulated industry, it is very important to be careful before choosing any BNPL apps.

However, RBI has been issuing policy and guidelines for these service providers. Further, RBI has also taken actions against some apps for any potential or doubtful activities.

Under the new RBI guidelines, non-banking institutions cannot use credit lines and issue pre-paid payment instruments to consumers.

However, users need to carefully look at the reputation of any such app before sharing personal details such as aadhar card, PAN details, etc.

Final Thought

Buy Now Pay Later apps in India offer convenient and flexible payment options to users. As a result, adoption of these apps have increased rapidly

There are several pay-later apps available in India, each with its own unique set of features and benefits.

Therefore, while using any pay later app in India, it is important for every user to compare them before choosing one.

It’s crucial for individuals using BNPL apps to exercise responsible financial behavior, carefully review terms and conditions, and only use these services when they are confident in their ability to make timely repayments. BNPL can be a useful tool when used responsibly, but it’s not without risks.

Frequently Asked Questions (FAQs)

Does BNPL affect CIBIL score?

Yes, it affects CIBIL Score, if you don’t make payment in a timely manner.

Is LazyPay approved by RBI?

While it was banned earlier, the ban has been lifted by the government.

Is KreditBee banned?

While it was banned earlier, the ban has been lifted by the government.

Which loan apps are RBI approved?

Some of the loan apps approved by RBI are NAVI, Dhani Loan App, Bharatpe, Tata Capital, OneCard Loan App, etc.

Disclaimer: The above list of apps is for information, please, and may not construe any kind of recommendation. The writer or owner of the website doesn't endorse any apps. So before choosing any apps for financial transactions, the readers were advised to stipulate rules and regulations to understand the risk associated. Some of the links may contain affiliate links.
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