Until a few years ago only credit cards were in use. But these days we see more of us buying now and paying later purchases. In the near future it is predicted that only BNLP cards will be in use as they are interest free over a period of time.
Credit Cards give you an EMI option where you can repay in installments. Some BNPL lenders give you 15 to 45 days interest free periods.
|BNPL Lender||Initial Credit Amount||Interest free period|
|Mobikwik||500 – 30000||Upto 15 days|
|Lazy pay||500 – 9999||Upto 15 days|
|HDFC||10,000 – 60,000||Upto 15 days|
|Flipkart||10,000||Upto 35 days|
|Amazon||10,000||Upto 45 days|
|ICICI||5000 – 20000||Upto 45 days|
Charge fees of BNPL and Credit Card
As credit cards only BNPL also do not have a processing fee / card costs. But carefully find out how many days non interest period of time & duration of repayment. Compare the interest rates between the companies that offer BNPL.
Buy Now Pay Later is a best option among the youngsters who are having lower income for better buying options. It doesn’t have a hectic process like a credit card.
Credit card is better for bigger expenses as it has a bigger credit limit that you can buy now and pay later. As buy now pay later is a newer option, they give you more offers compared to credit cards. While having a credit card credit history is a compulsory but that doesn’t matter in BNPL.
Credit card interest rate is higher compared to BNPL. Credit cards are mostly allowed internationally. As now BNPL is mostly allowed in e-commerce sites but it is estimated to reach higher in the near future.