5 things to know about buy now, pay later schemes

1) BNPL is a payment option that allows you to make a purchase without paying from your own pocket.

2) One has to sign up with a company to avail this facility. The company makes major payment while the person has to make the down payment for the purchase.

3) One can either repay as a lumpsum amount or EMIs without any additional charge in the given time period.


4) On failure to pay within the time frame, interest will be charged on the amount and could impact one’s credit score.

5) BNPL companies make money from sellers and delayed repayments of buyers

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)