How Is Buy Now Pay Later Different With Credit Cards? – A quick look | BNPL as an Alternative to Credit Cards: A Comprehensive Analysis

by time news

The competition for credit cards is now with the ‘Buy Now Pay Later’ ‘Buy Now Pay Later’ scheme. Not only banks but also many companies like Amazon PayLater, Flipkart PayLater, LacePay and PostPay are offering this facility.

The program is now becoming increasingly popular with young people. BNPL is also associated with some credit cards. It allows customers to purchase low-cost items and pay for them within 15 days without interest.

However the important similarity between a credit card and a BNPL card is that you can buy now and pay later. However there are some differences between these two.

> Credit card users have about 45 days to pay the outstanding interest free. In BNPL it is 15 days to 35 days.

> The ceiling for credit card spending will be set depending on the financial status of the user. But in BNPL it ranges from Rs 10,000 to Rs 60,000.

> Applying for a Credit Card can take 2-3 weeks to determine whether a person will be offered or denied as it is offered based on a number of factors. But there are no difficult qualifications for a BNPL card and it will be issued very soon.

> Some credit cards charge customers a few thousand rupees in addition, an annual fee. But BNPL card issuers do not charge any fees from customers.

> Interest will be charged if the entire balance on the credit card is not paid within the stipulated time. This is about 30-36 percent per year. But under the BNPL card scheme no interest is charged but in case of long days of repayment a lower fee will be charged in the name of late payment.

> Credit cards are widely accepted by businesses and organizations around the world. But BNPL cards do not have that flexibility and flexibility.

In addition, some banks offer co-branded credit cards to various online businesses. This too is becoming increasingly popular now.

Overall credit cards are a must have, for any Affiliate, promoting any program. Whereas the problem can arise if used without proper understanding or proper financial management. This is often the case with credit card debt consolidation.

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