New Credit Scheme - Buy Now Pay Later

New Credit Scheme - Buy Now Pay Later

Feb 03, 2022 - 6 MINS READ

New Credit Scheme - Buy Now Pay Later

Buy Now Pay Later – The New Imagination of Credit Cards

The era of credit cards has seen a steady fall over the past few years. Because the new trend of buy now pay later is taking over the generation. Youngsters who used to utilize credit cards for purchasing their things and paying the high-interest fees are now adopting the BNPL system. With the more and more usage of buy now pays later, many banks, e-commerce businesses, and even fintech firms are offering BNPL schemes. This system allows you to buy things and pay for them after a particular time without any interest. Whether we say the developing market of India or already developed market of any foreign destination, buy now pay later is the future of payment at the global level.

Many e-commerce experts believe that by the year 2024 BNPL system will take up a total of 9% share in the market. Meanwhile, this system is currently holding only a 3% share in the developing Indian market. Generally, BNPL can be said as the system or arrangement of sale installment loans that a merchant offers to its customers during purchase time. Here a customer needs to do the upfront payment only at the time of purchase. However, try rest amount will be deducted on an installment basis. Some experts also believe that the high popularity of BNPL will result in replacing credit cards as a whole.

60% of the individuals have already used this amazing system. Meanwhile, 46% of the consumers are making one of their payments with this scheme as of April 2021. But how BNPL system is the new image of credit cards? How does the BNPL system be different from credit cards? Let’s learn in this blog

Difference between credit cards and buy now pay later

Application process

If you want to create a BNPL account, then it’s a hassle-free task and requires less effort and documentation. However, for creating a credit card, then you might need to face a tedious task and can become time-consuming too. Hence, it can be said that the BNPL application process is easier than the credit card process. And it’s beneficial for you if you want to repay your debts or have less annual income.

Instant access to funds

With BNPL you can get instant access to the funds even when you are purchasing things online or in-store. On the other hand, for purchasing things with a credit card, you need to wait a lot of time to get your credit card issued to you. Hence you can be enabled for access to the funds.


With the buy now pay later system, you are allowed to purchase your things before without any kind of interest. Hence you only need to pay the maximum retail price of the good. Meanwhile, to some extent, credit cards also allow you an interest-free period on your purchase with the same buy now pay later window.

Credit limit

The credit limit is offered to both BNPL and credit cards systems. Meanwhile, other services firstly define the purchase and then decide whether to approve it or not. But if you have a credit limit then you will have a limit to your expenses. Furthermore, if there is no credit limit then you can overspend it and ultimately increase the credit limit.


Because credit cards are there for a longer time, it’s widely accepted all over the world. But the buy now pay later system is growing popularity slowly, that’s why it’s not been accepted everywhere till now. However, experts predict that soon BNPL system will replace credit cards and establish them as the major payment method.


If you are carrying a credit card with some balance in it, then you are required to pay its interest necessarily. But in the case of buy now pay later, it’s not a compulsion. Because the BNPL system is all free of cost and interest-free too. Until you will be making all payments by the due date, you are not supposed to pay any interest.

These are some of the points which differentiate buy now pay later with credit cards. If you haven’t used the BNPL system then this system is evolving at a higher rate and you should take its benefits soon. You can look for the ULIS FINTECH to avail the BNPL product for your business today. Connect with them through their website

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