Are you tired of waiting to buy the things you want? Wish there was a way to get what you need now and pay for it later? Well, look no further! In this blog post, we will be diving into the world of Buy Now Pay Later (BNPL) apps in India. These innovative apps are revolutionizing the way we shop by allowing us to make purchases instantly and spread out our payments over time. Whether you’re looking for fashion, electronics, or even groceries, these popular Buy Now Pay Later apps have got you covered. So let’s explore the top 5 players in this game-changing industry and discover how they can help enhance your shopping experience in India. Get ready to shop smarter with BNPL!

Top 10 Buy now pay later Apps

Here is the list of 15 Buy Now Pay Later apps widely used in India:

1. Paytm Postpaid
2. Ola Money Postpaid and Wallet
3. Free Charge Pay Later
4. Flipkart Pay Later
5. Amazon Pay Later
6. e pay Later
7. Mobikwik
8. Lazy Pay
9. Slice
10. Pay Later by ICICI Bank

Overview – Top BNPL companies

Paytm Postpaid 

Paytm offers a credit line of up to 60,000 through their application. This credit line can be utilized at over five lakh offline and online stores where Paytm payments are accepted. Users can enjoy this credit line without incurring any interest for a monthly billing cycle. Paytm’s partners are spread in all domains and localities in India.

Penalty:

Amount (INR)	Penalty Per Month (INR)
Till 100	Nil
Beyond 100 to 250	10
Beyond 250 to 500	25
Beyond 500 to 1000	50
Beyond 1000 to 2000	100
Beyond 2000 to 5000	250

Ola Money Postpaid and Wallet

This application offers cashback on spending through partner apps, with the maximum cashback ranging up to 30%, subject to varying upper limits set by each company. Additionally, it includes an Ola Money wallet feature. Late fees are applicable on the 1st, 31st, 61st, and 80th day following the due date, but no late fee is charged after the 80th day. The maximum credit line available is INR 25,000, which is valid for a 30-day billing cycle. However, a penalty may be imposed after this period. If the entire sum is paid within 3 months, no interest is levied on EMIs. The application has partnered with various companies, including Medlife, Netmeds, Book my show, and others.

Amount (INR)	Penalty
Till 250	Nil
Beyond 250 to 500	50
Beyond 500 to 1000	75
Beyond 1000 to 2500	100
Beyond 2500 to 5000	250
Above 5000	500

Free Charge Pay Later

This application enables users to conveniently pay bills and make purchases at over 25,000 online and offline retail outlets. Currently, there are no processing fees associated with this service. It can also be utilized to pay bills for various services such as mobile, DTH, broadband, electricity, and landline phone services. The maximum amount provided by the company is INR 10,000 per month. The billing cycle spans one month, with the bill being generated on the 5th of each month. During this period, the amount spent is completely interest-free. Partner companies, including Swiggy, Zomato, and Myntra, are associated with this service.

Amount (INR)	Penalty (INR)	Penalty Will Not Exceed (INR)
Till 1000	10	75
1000 to 3500	10	325
3500 to 10000	10	475

Flipkart Pay Later

Flipkart has launched its own Buy Now Pay Later (BNPL) service, offering a credit limit of up to one lakh. This service is exclusively applicable for shopping on Flipkart, Flipkart retail, Myntra, and 2GUD, all of which are subsidiaries of Flipkart. To enjoy interest-free credit, users are required to pay the monthly bill of the previous month by the 5th of each month. Furthermore, the option to convert purchases into EMIs is available, although the limit for EMI conversion is lower than the total credit line provided for the same account.

Amount (INR)	Penalty Per Month
Beyond 100 and 500	60
Beyond 500 and 1000	125
Beyond 1000 and 2000	175
Beyond 2000 and 3000	300
Beyond 3000 and 4000	410
Above 5000	600

Also read: How to shop with Flipkart pay later

Amazon Pay Later

Amazon Pay Later enables customers to convert their purchases on Amazon.in into EMIs. To avail of this service, users need to log in to Amazon.in and opt for Amazon Pay Later by providing their basic information. Once set up, customers can make purchases on the website and always have the option to convert them into EMIs. The number of EMIs available ranges from 3 to 12. The bill is generated on the 1st of each month and must be paid by the 5th. Any delays in payment after the 5th will result in a penalty charge. It is important to note that Amazon Pay Later only applies to purchases made on Amazon.

Amount (INR)	Penalty
Till 200	nil
Beyond 200 to 1000	125
Beyond 1000 to 5000	250
Beyond 5000 to 20000	425
Beyond 20000	600

e Pay Later

This Buy Now Pay Later (BNPL) service is specifically designed for self-employed individuals, particularly businessmen, offering them a credit line of up to INR 25 lakh. This credit line allows them to make interest-free purchases for a duration of 14 days. The app also provides reward points based on the utilization of this credit limit, which is equivalent to a portion of the spent amount. Even individuals who don’t require the credit can utilize this service to earn reward points.

Regarding penalties, if individuals fail to make payments to the company, a flat penalty of 3% is charged on the defaulted amount each month. Additionally, this service has partnered with some of the prominent wholesale brands in India.

Mobikwik

Mobikwik ZIP offers the convenience of transferring funds to banks for making payments, as well as the ability to pay bills, purchase goods both online and offline, and even buy rail tickets. Within a billing cycle of 21 days, subscribers can access a credit limit of up to INR 30,000 at no interest. However, if the billing cycle is exceeded, the company has the right to charge interest on the credit line. Users also have the option to convert the outstanding balance into EMIs.

Here are some important points to note:

• Subscribers are required to pay a subscription charge of INR 99.
• Wallet transfers to banks are subject to a fee of 3.95% + GST.
• In case the subscriber fails to log in to their account, wallet inactivation charges may apply, ranging between 100 and 400, depending on the duration of inactivity.

Outstanding Amount(INR)	Bill Bounce Charges Per Cycle (INR)	Late Payment Fee Per Cycle	Daily Overdue Charges
Till 100	250	2.5% of the Principal Outstanding	0.1% of the Principal Outstanding
Beyond 100 to 500	250	2.5% of the Principal Outstanding	0.1% of the Principal Outstanding
Beyond 500 to 1000	500	2.5% of the Principal Outstanding	0.1% of the Principal Outstanding
Beyond 1000 to 2000	500	2.5% of the Principal Outstanding	0.1% of the Principal Outstanding
Beyond 2000 to 3000	500	2.5% of the Principal Outstanding	0.1% of the Principal Outstanding
Beyond 3000 to 4000	500	2.5% of the Principal Outstanding	0.1% of the Principal Outstanding
Beyond 4000 to 5000	500	2.5% of the Principal Outstanding	0.1% of the Principal Outstanding
Above 5000	500	2.5% of the Principal Outstanding	0.1% of the Principal Outstanding

Lazy Pay

Lazy Pay is a popular buy now pay later application known for its standout features, which include:

• Seamless KYC process without the need for physical documentation.
• Swift approval for a credit line.
• Convenient options to scan, pay, or use UPI for transactions.
• A generous interest-free period of 15 days.
• Payment due dates typically fall on the 3rd and 18th of each month, with the option for autopay.
• A substantial maximum credit limit of ₹100,000.

In summary, Lazy Pay stands out for its hassle-free KYC process, quick credit approval, multiple payment options, a generous interest-free period, and a high credit limit.

Slice

Slice is a highly regarded pay later application, especially popular among students, primarily because it serves as a remarkable solution for those without credit cards. One of its standout features is the opportunity to receive cashback of up to 50% when making purchases on platforms like Myntra and Flipkart. This cashback feature, known as Sparks, adds to the appeal of using Slice.

Another advantage is the availability of a Slice card, which not only provides the convenience of 1-2% cashback on Sparks but also facilitates timely payments. An additional advantage of the Slice card is that it is entirely free, even for international transactions. However, it is important to note that caution should be exercised when opting for EMIs that extend beyond a three-month period, as they may incur interest rates ranging from 12% to 15%.

ICICI Pay Later

This buy now pay later app stands out due to the following features:

• Activation of the facility does not require any joining fee or annual fee.
• The credit period offered ranges from 15 days to 45 days, depending on the individual’s creditworthiness.
• In case of the need to reschedule payments, a low interest rate of only 3% per month is charged.

Key Considerations for Choosing Buy Now Pay Later app Options

Here are some important considerations before choosing for BNPL options:

• EMI Schedule
• Precautions
• Boost to Credit Score
• Where to Use BNPL
• Charges

EMI Schedule:

EMI payments are interest-free for a limited period, and if paid within this timeframe, no interest is charged. However, exceeding this period incurs nominal interest rates compared to other lending options.

Precautions:

Timely payment of EMIs is crucial to maintain a good credit rating. Defaulting on payments can have a negative impact on your credit score.

Boost to Credit Score:

BNPL options can contribute to improving your credit rating. Even individuals with poor credit scores can access this facility. Regular repayment of EMIs gradually increases your credit limit.

Where to Use BNPL:

BNPL services are available at partner companies affiliated with the service provider. The more partners they have, the better it is for consumers.

Charges:

While some BNPL companies do not charge interest if payments or EMIs are made on time, interest charges are applied for delayed payments. In many cases, these interest rates may be higher than those of personal loans. Annual fees are typically not charged, and only a few companies may have a joining fee.

Also read: What is Buy Now Pay Later

The bottom line 

Buy Now Pay Later apps have gained immense popularity in India, offering a convenient and flexible way for consumers to make purchases and manage their finances. With the rise of e-commerce platforms and the increasing demand for online shopping, Buy Now Pay Later apps have become an essential tool for many Indians.

These BNPL applications not only offer convenience but also help individuals build their credit history by making timely repayments. They provide an alternative option for those who may not have access to traditional credit facilities or prefer more flexibility in managing their expenses.

However, it’s important to use these services responsibly as they involve borrowing money that needs to be repaid eventually. Before using any Buy Now Pay Later apps, it’s crucial to carefully read the terms and conditions regarding interest rates, fees, repayment periods, and late payment penalties.

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