Buy Now, Pay Later (BNPL) is rapidly becoming a popular payment method in India. Buy Now Pay Later is a new payment option that allows you to pay for your purchase over time instead of all at once. With this service, you can repay the cost of an item over a period of time instead of immediately. This gives you the chance to keep buying essential items without having to worry about how much money you have available or how much you’re going to spend on a particular item. One of the great things about Buy Now, Pay Later services is that they are optional. If they aren’t right for you as a consumer, then it’s best to avoid them. In this article, we will explore the pros and cons of Buy Now Pay Later services so that you can make the right decision for your personal finances.

What is Buy Now, Pay Later?
With the buy now, pay later option, you can establish a deferred payment plan with the merchant. You agree to repay the amount after a stipulated period. This is a new way to purchase items, and while it is a popular payment method in many countries, it is relatively new to India. However, it has gained significant popularity in recent years, and there are a number of online aggregators like LazyPay that provide BNPL options.

The idea behind BNPL is to give consumers the ability to delay payment for what they need, without incurring interest on their purchases. When you sign up for BNPL apps, you agree to pay the aggregator the amount you have spent from your credit limit after a specified amount of time. While most BNPL apps like LazyPay offer no interest on your purchase, if your bill repayment is not done on time, you can incur some late charges.
Pros of Buy Now, Pay Later

Shop with confidence
With buy now, pay later, you can shop with more confidence knowing that you won’t need to come up with cash on the spot. You can pay off your purchases over time, and you won’t have to worry about not having enough money.

Easy Set Up And Quick Approval
BNPL aggregators like LazyPay offer a quick and easy setup for first-time users. All you need to do is carry out your paperless KYC verification, and within minutes, you have access to credit. This is why BNPL is becoming the credit instrument of choice for first-time earners in the country.

Explore Exclusive Offers
BNPL apps often tie-up with major brands to offer exclusive discounts or cashback on your purchases. All you need to do is check the associated merchants' section on the BNPL apps or website and avail of the offers listed there.

Credit Limit Increases With Every Repayment
When you use BNPL services like LazyPay, you start off with a certain credit limit. Upon every successful repayment of your BNPL bills, this credit limit increases, so you can look at bigger ticket items you wish to buy using these services.

Cons of Buy Now, Pay Later

Late Payment Fees
When you establish a payment plan with the merchant, you are, in fact, borrowing money from them. This means that they will charge you interest on this loan. If the interest rates are high, it could make BNPL a bad deal for your finances. Always make sure to read the fine print to determine how much interest you will have to pay on any BNPL loan.

Your Credit Score Can Get Impacted
Failure to repay your bills can not just lead to incurring charges as mentioned earlier, it can also lead to a negative impact on your credit score. This is because, by not paying your bills on time, you display an inability to pay back what you owe, and this can reduce your credit score. This can lead to difficulties in getting loan approvals in the future.

Increases Likelihood Of Impulse Purchases
Having access to credit can sometimes lead to impulsive purchases. Using BNPL services means you won't be paying out of pocket immediately, which can make people eager to spend more than their allocated budget. It is important to keep track of your personal finances, so you are not spending more than you can.

Final Words: Should You Use BNPL?

As with most payment methods, it’s important to consider all of the pros and cons before deciding if you would like to use a Buy Now, Pay Later service. If you find that a Buy Now, Pay Later service is right for you, then you will be able to save money while delaying payment of an item over a certain period of time. There are many buy now pay later options available, so you can shop around to find the best one for your needs. BNPL can be a great option for those who have a long time before they have to make a large purchase, are saving up for a big purchase, or have a specific item on their wish list that they’d like to purchase but cannot finance immediately.