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How Buy Now Pay Later Bridges A Gap Between Payment Methods And Affordability

In this blog we are going to talk about how buy now pay later (BNPL) bridges a gap between payment methods and affordability. I will also explain both the advantages and disadvantages of BNPL for consumers and merchants.

What is BNPL?

BNPL is a short-term financing option that allows customers to buy products or services online or offline and pay for them later in installments or in full within a specified period. BNPL providers usually partner with e-commerce platforms, retailers, or payment gateways to offer this service at the point of sale. Customers can choose buy now pay later as a payment option and complete a quick KYC process to get approved for a credit limit. They can then repay the amount using their debit card, bank account, UPI, or net banking.

How Does BNPL Bridge A Gap Between Payment Methods And Affordability?

BNPL bridges a gap between payment methods and affordability by offering customers the convenience of paying later without any interest or fees (if they pay on time) and by increasing their purchasing power. BNPL also benefits merchants by increasing their sales, conversion rates, customer loyalty, and cash flow.

Some Of The Advantages Of BNPL Are:

  • It is the only payment method which facilitates financial inclusion by providing access to credit for customers who may not have a credit card or a high credit score.
  • It enhances customer experience by offering a seamless and hassle-free checkout process and by reducing cart abandonment.
  • It boosts customer confidence by allowing them to try before they buy and by offering easy return and refund policies.
  • It helps customers manage their budget and cash flow by spreading the cost of purchases over time and by offering flexible repayment options.
  • It incentivizes customers to buy more or higher-value items by offering discounts, rewards, or cashback.

Some Of The Disadvantages Of BNPL Are:

  • It may encourage impulsive or unnecessary shopping by creating an illusion of affordability and by lowering the psychological barrier to spending.
  • It may result in late fees, penalties, or interest charges if customers miss or delay their payments or if they exceed their credit limit.
  • It may affect customer’s credit score negatively if they default on their payments or if they use BNPL too frequently or for too many accounts.
  • It may not offer any rewards or cashback on purchases unlike some credit cards or other payment methods.
  • It may not be available for all products, services, or merchants depending on the BNPL provider’s terms and conditions.


BNPL is a popular and innovative payment method that bridges a gap between payment methods and affordability. It offers several advantages for both customers and merchants but also comes with some risks and drawbacks. Customers should be aware of the pros and cons of BNPL before using it and should use it responsibly and wisely. Merchants should choose a reliable and reputable BNPL provider that suits their business needs and goals.

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