Eyeing a new smartphone or a smartwatch or a new laptop but do not have the budget to pay for it right away? The Buy Now Pay Later financing option could help you take an instant loan for these purchases. Over the last few months, buy now pay later apps have become an all-new sensation among millennial shoppers and other digital payment enthusiasts. As the name suggests. BNPL apps offer you credit or a personal loan to help you finance your purchases and split your payments into multiple smaller transactions. You can use these apps to pay monthly utility bills, such as phone, water, electricity, etc., or shop for essential as well as non-essential goods and services across online and offline channels. Different BNPL service providers offer different terms of payment. For example, you can split your payments into monthly, bi-weekly, weekly payments, etc.

How To Get Started With Using Buy Now Pay Later Apps? 

Most BNPL apps available in India can be downloaded on both Android as well as iOS phones. You can go to the play store or app store to explore different BNPL apps and choose the one that best fits your requirements and is compatible with your mobile phone.

Depending on the type of pay later apps you use, you can instantly get your credit approved and know your credit limit. All you should do is sign up the app and enter some basic details, and the app can automatically assign you a credit limit which you can use for your online and offline purchases.

There are tons of BNPL apps available in the Indian market that has partnered with retail merchants, so you can grab a pay later opportunity on almost any purchase you make.

Why Should You Use BNPL Apps? 

First, buy now pay later apps to help you afford things that you might not have funds handy for. You can get a product even before paying in full for that item. Depending upon your sources of income, you can create a no to low-cost EMI for such expenses, and you can make your payments in parts.

Second, using a BNPL app is a cakewalk, especially if you have been using digital payment methods and e-commerce websites for a while now. You can get instant approval for a credit limit by providing basic documents and completing your KYC. You can immediately start transacting with the merchant partners as soon as your application is approved.

Third, a BNPL app can actually help you improve your credit history. When you finance any purchase through a BNPL scheme, an instant personal loan gets granted to you by the BNPL service provider. This personal loan starts to reflect in your credit reports. If you make timely repayments for your personal loans, banks and NBFCs understand that you are a creditworthy individual and would be willing to offer you more loans in the future.

Fourth, using a BNPL app can help you earn some extra reward points, cashback, discount codes, and scratchcards for future purchases. This gives you an extra layer of advantage. You not only make purchases on a low-cost EMI but also get some additional monetary advantages. Hence, this becomes a win-win situation for an individual.

Lastly, using a BNPL app or financing option is a much more secure method than using other forms of credit, like a credit card or a personal loan. A credit card or a personal loan attracts higher rates of interest in case of non-payment. Additionally, in the case of credit cards, you generally need to carry a physical credit card with you to make purchases; hence there is a high chance of financial fraud or loss of your card. Moreover, even on online purchases, BNPL payment methods have an easy authentication process as compared to other methods.

Further, if you do not have any credit record in your name or your PAN number, you are unlikely to get a personal loan or a credit card from major banks and lending institutions in India. Hence, starting with a BNPL financing scheme could be more beneficial for you. Essentially, all of the above reasons make BNPL more consumer-friendly and easier to use.