New Delhi: Many companies in the country are providing the facility of Buy Now Pay Later. This concept is becoming increasingly popular. Under this interest-free loan facility, you buy any item and after a few days pay the price i.e. make repayment. At the same time, global payment technology company Visa (VISA) and Mastercard will launch a separate Buy Now Pay Later Platform (BNPL Platform) in India by the end of FY 2022.
According to the Economic Times report, Visa and Mastercard are in talks with partners to create a platform that allows retail brands and online merchants to directly tie-up with banks and offer customers different payment options.
How ‘Buy Now Pay Later’ works
BNPL scheme allows you to buy something now and pay later. Its most basic format is that when you open an account with a fintech firm and get yourself registered in it, then this firm gives you the facility to buy with any of its partner merchants.
By making this purchase in advance, you pay for it within 15 to 30 days. But if in any case, you are not able to make the prescribed payment for your purchase within the stipulated period, then you have to pay interest and a late fee. Some of the fintech companies in this segment include companies like ZestMoney, Paytm, Mobikwik, Freecharge, Amazon Pay, Simpl, Kissht, LazyPay, Slice.
