Buy now, pay later scheme (BNPL)


Providers say that “buy now, pay later” (BNPL) is not a credit card scheme. It provides you the ability to spend this month and repay the amount next month. I already got this scheme from paytm postpaid. This is a kind of short-term loan that you can use without paying any interest and repay the amount within a certain time frame. If you fail to repay your loan within the stipulated time period, you will have to pay late fee. In my opinion, BNPL is a good scheme if you use it with proper planning.



Paytm is a digital payment system. Most of people have paytm app installed on their mobile because mobile payment system has been more popular than credit card in India. There is a reason behind it that credit card often comes with several costs like joining fees, interest rate, and annual recurring fees. There may be some hidden charges also. I don’t have exact data because I have never used a credit card to shop anything as of now. In paytm postpaid scheme, you don’t have to pay any charges if you don’t use your credit limit. Also this system doesn’t require joining fees as well as annual recurring fees.

Paytm postpaid has three variants of customers – lite, delite and elite. It is not so easy to activate this service in your mobile. You will have to submit necessary documents for full KYC. The company will verify your credit score, then they will provide you this scheme under lite, or delite, or elite depending on your good credit score. Customer with low credit score may also get this service but under lite category. Lite customers get low credit limit and need to pay Convenience fee + GST on their purchase using paytm postpaid. While delite and elite customers can use their credit limit without paying any charge. However, late fine is applicable for all of three variants if they fail to repay the amount within stipulated time period.

I am a delite customer in paytm postpaid system. So I don’t pay any convenience fees and GST on my purchase. However, this month I failed to repay my credit amount within the prescribed date. I had to repay the whole loan amount with late fee. Yet the system looks good to me. Paytm postpaid calculates your spendings from the 1st to 30th of every month and the bill generates on the 1st date of next month which you will have to pay within 7 days. On the failure of repayment, your account will be automatically suspended until you repay your loan. Delay in repayment may hamper your credit score. This is my personal experience regarding paytm postpaid because I am using it last four to five months. There are several other fintech companies that provide BNPL scheme but I am not very much familiar with them. However I will also review those companies.

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