How the COVID-19 Pandemic Fuelled the Rise of the BNPL

COVID-19 saw unprecedented times with medical emergencies, social distancing and home isolations. Our lives radically shifted online and changed shopping behaviours forever. These are a few of the reasons why there might have been a rise in the BNPL method. It lets you borrow as little as ₹1,000 up to ₹60,000 and enjoy low-cost EMIs. The whole process is time saving, efficient and 100% digitised.

It saves you from stepping out of your home. You can use BNPL across multiple e-stores for diverse needs. For example, refill your grocery last minute without running to the supermarket. Else, you can buy expensive medicines offline during emergencies hassle-free from Apollo Pharmacy. It is activated as soon as the documents are verified. You do not have to pay from your pocket right away which was a blessing amid salary cuts and lay-offs.

The Rise of the BNPL

In 2021, the global retail e-commerce sales approximately reached $4.9 trillion and are expected to grow by 50% over the next four years amounting to $7.4 trillion by 2025. So, the BNPL as an online credit system is likely to stay. It has gained traction among millennials due to its buy now pay later app based application, Interest rates starting at 0% and deferred payment. You can have a personal cash reserve at your disposal to cater to your online purchase.

It ensures economic viability and helps afford products that are way beyond your budget. No extra costs are involved unlike that of credit cards where you end up paying balance transfer fees, annual maintenance fees and late fees. BNPL only has processing fees which are as low as ₹200 to ₹600 based on the chosen plan. Further, credit card issuers have lowered the limits since the borrowers have become far less creditworthy due to financial blows. This makes BNPL a better alternative and lets you shop ‘now’ and not ‘later’.

Why is BNPL a Practical Option?

The Buy Now Pay Later credit system lets you purchase small-ticket items. You can use it to fund mini bills online for apparel, medicines, accessories and daily essentials. For instance, apply for a BNPL big basket shopping loan and purchase a few grocery items for a sudden dinner party at home. The amount is credited as vouchers almost instantly to help you get started right away. Choose from a tenure between 90 and 180 days at your convenience and a range of flexible payback methods like NEFT/IMPS.

Conclusion

You can make the most of the BNPL scheme via the loan app. This is one of the main reasons why there has been a significant surge in this payment mode. Shop till you drop from the comfort of your couch with just a few clicks. Simply download the buy now pay later app from Google Play Store or App Store, create your profile and select the desired e-commerce you wish to shop from.