Blogs

BNPL

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Living cheque to cheque and amassing credit debts have for some time been essential for most consumers. In fact, even before the pandemic led to these questionable financial times, most consumers were frequently confronted with hard choices about when they could go a little overboard on extravagances and when they needed to reduce spending. 

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Now that the general buying power of consumers has reduced, retailers have gone to fintech companies to help them (and their customers) reach their critical sales point. During the last decade or so, fintechs companies have been crucial in putting the power back in consumers’ hands and challenging the usual way consumers spend their money. 

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The idea of BNPL payments is not too complicated: It basically means splitting up payments over monthly instalments with very little interest. This means that purchases that were maybe not possible to fit into tight monthly budgets become much easier to achieve. 

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What are the advantages of BNPL services for consumers?

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• Saves Time: Instead of having to wait for their next paycheck to arrive, consumers can go ahead and make an immediate purchase if needed
• Easy to Use: Being able to make quick payments and then pay the amount back over instalments has made the buying process very easy 
• Convenient: With BNPL services, there are no more higher interest rates, long term EMIs and costly late charges 

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What are the advantages of BNPL services for retailers?

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• Increased Sales: Most retailers who have implemented BNPL services have reported at least a minimum growth in sales due to increased customer usage 
• New Customer Acquisition: The introduction of BNPL services has the advantage of attracting new customers who may have been hesitant to make purchases because of fund/budget constraints 
• Customer Loyalty: Most customers who are given the option to make purchases using BNPL services are more likely to come back for their new purchases

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Who are the main players in the BNPL services market in India? 

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LazyPay | Simpl | PayTM Postpaid | ZestMoney | Amazon Pay Later | Flexmoney

For all platforms and retailers who are looking to implement BNPL services, Encore 360° has the Encore Lend platform, which is a fully-integrated lending management and core accounting suite. From customer on-boarding to loan repayment, Encore Lend is the product to satisfy all your lending requirements.