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Home Business ‘Buy now pay later’ loans to disrupt market - Times of India

‘Buy now pay later’ loans to disrupt market – Times of India


NEW DELHI: Buy now pay later or BNPL loans are set to disrupt the credit market, with technology making it easy for lenders to provide sachet-ticket loans, without the risks or costs associated with lending to this category. B
NPL refers to the techenabled credit that is extended to borrowers at the point of sale as a payment option. Unlike credit cards, the credit decision is taken on the spot using technology for the sale amount.
“With BNPL, banks and other lenders can reimagine credit. It is like providing sachet-sized credit lines to customers without having to bear the cost of credit-card infrastructure or the extensive process related to personal loans,” said Yezdi Lashkari, founder Flexmoney Technologies — a company that enables BNPL loans for top banks in the country.
He added that the platform provides lenders the flexibility of opening up credit windows temporarily during festivals and hiking limits for a short period. Besides Flexmoney, there are other players like Paytm, LazyPay, Simpl, Capital Float and ZestMoney, who are active in BNPL, According to a Bernstein report, BNPL market in India is estimated at $15 billion with the potential to hit $100billion by 2025.





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