Buy now, pay later loans to disrupt the market


NEW DELHI: Buy now, pay later, otherwise BNPL loans are poised to disrupt the credit market, with technology making it easy for lenders to provide bag-ticket loans, without the risks or costs associated with lending in this category.
BNPL refers to the techenable credit that is given to borrowers at the point of sale as a payment option. Unlike credit cards, the credit decision is made on the spot using technology for the amount of the sale.
“With BNPL, banks and other lenders can reinvent credit. It’s like providing sachet-sized lines of credit to customers without having to bear the cost of credit card infrastructure or the extensive personal lending process, ”said Yezdi Lashkari, Founder of Flexmoney Technologies – a company that provides BNPL loans for the best banks in the country.
He added that the platform gives lenders the option of temporarily opening credit windows during festivals and hiking limits for a short time. Besides Flexmoney, there are other players like Paytm, LazyPay, Simpl, Capital Float and ZestMoney, which are active in BNPL. According to a Bernstein report, the BNPL market in India is estimated at $ 15 billion with the potential to reach $ 100 billion by 2025.

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