Why are Millennials Increasingly Turning to BNPL Deals in India?

Buy Now Pay Later (BNPL) is a rapidly evolving e-commerce payment method. It finances one's shopping across various online merchants like Amazon, Flipkart, Myntra etc. without the need for upfront payments. Instead, the amount spent can be paid later in easy EMIs.

. According to a 2021 report, most of the customers availing BNPL deals were 23-26 years old. The. Therefore, top fintech companies in India are offering Buy Now Pay Later deals on their apps to customers in the age group of 22- 38 years.

Here's why millennials are increasingly turning to BNPL deals in India.

Cost-effective, Transparent and Flexible Payment Method

The first generation that grew up with the internet was millennials. So, their inclination towards online shopping isn't surprising. However, when it comes to financing shopping needs, traditional lending products are marked by onerous costs of debt and a lack of transparency and flexibility.

New-age BNPL deals on pay later apps have made low-cost credit available to large segments of customers without or new to credit cards. Monthly interest charges are 0-0.75% spread across 3-6 months if one chooses a top digital lender. In addition, there are no hidden charges, which makes this payment method transparent.

One can repay a BNPL loan in easy EMIs instead of any lump sum payment. Unfortunately, this facility isn't available with all credit cards, and some require you to spend above a specific limit to pay in EMIs. However, one can repay a BNPL loan of even?1,000 in EMIs via IMPS/NEFT. This helps in spreading out the costs to plan finances better.

Access to Shopping at Several Online Merchants

Top fintech companies offer BNPL deals to shop for grocery, electronics, home decor, fashion, and more at different merchants. For instance, one can use these loans to shop at Myntra, Amazon, Flipkart, Big Basket, etc.

Leading fintech companies allow one to use a BNPL loan to shop at Myntra between?1,000 and?60,000. The amount offered is enough for even big-ticket purchases.

Conclusion

A BNPL account can be created with minimal details on a pay later app. Once the loan is approved, it's credited as a merchant gift card. This can keep up with the fast-paced lifestyle of millennials.

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