How does BNPL Work?

What is BNPL Payment?

Buy Now Pay Later or BNPL is a payment solution that allows customers to spread their payments into easy EMIs instead of paying the entire amount upfront. Therefore, you can purchase high-value items with relative ease without going over your budget.

How does BNPL Work?

Commonly known as BNPL, this payment option allows you to make your purchases now and pay for them at a later date. A card like the Bajaj Finserv card can be used to shop and enjoy fabulous offers and discounts that can eventually help you save more with every purchase. Here’s how it usually works:

  • Firstly, the customer must make a purchase at any of the partner stores
  • Next, choose a preferable repayment option like BNPL to pay back the total amount in easy instalments
  • The customer must necessarily make a small down payment of the overall purchase amount
  • The remaining amount would then be deducted into interest-free EMIs for the customer to pay during the tenure. These EMI payments can be cleared through multiple modes like bank transfers, debit cards, credit cards, cheques, or directly through the bank account.

Advantages of BNPL

There are several advantages of the BNPL payment option, some of which are listed below:

  • You can easily carry out big-ticket purchases without obstructing your monthly budget
  • BNPL helps build a solid credit history when you pay your bills on time, leading to an increase in your credit score over time.
  • The application process for BNPL services is quite smooth, helping you get easy access to the credit facility within no time.
  • One main benefit of the buy now pay later option is that the transactions are highly safe and secure, leaving zero chances of fraud.
  • There is an easy repayment tenure, so you can choose the tenure of your choice and spread your expenses over a period of time
  • In most cases, the BNPL payments can be divided into three to four EMIs. These instalments are generally in the form of no-cost EMIs.

Eligibility Criteria and Documents Required for BNPL

To benefit from the advantages offered by the BNPL services, you need to fulfil the following eligibility criteria:

  • The minimum age of the customer must be at least 20 years
  • They must be a resident of India
  • They must be a salaried individual
  • It is necessary to have a steady flow of income to be able to pay the dues on time
  • The customer should have a bank account with updated KYC details in place
  • They must be residing in a major Tier 1 or Tier 2 cities of India

Difference Between Credit Card and BNPL

Credit Cards and BNPL mostly function in the same manner but have some minor differences as highlighted below:

Credit CardBNPL
Hidden charges are levied on credit cardsBNPL follows a minimal expense evaluating model for its users
You must have a good credit history to be able to get a credit cardIt is not mandatory to have a credit history to avail the BNPL payment option
Credit cards are offered by all financial institutions and have a universal acceptanceBNPL payment facilities are provided by select e-retailers and fintech organisations
Credit cards come with a limited interest-free periodInterest – free credit period can go up to 12 months for select retailers
Getting approvals can be a bit difficultIt is quite easy to get approvals without much hassle
You have the option of paying only the ‘minimum due’ amount by the due dateYou have to pay the fixed EMI on the scheduled date
You can earn cashback and reward points on purchases made using a credit cardBNPL payment option offers no such advantages


The option of deferring payment without interest and splitting it into smaller chunks sounds very appealing. Buy now pay later is a standard method consumers use to purchase items they cannot afford. You can also use the BNPL payment option to make your shopping experience seamless using the Bajaj Finserv cards. This card facilitates you to pay for your big-ticket purchases like gadgets, electronics, lifestyle shopping, etc., into affordable and customised EMIs so that you can repay the dues at your convenience.