5 Buy-now-pay-later apps that make shopping easy and help you build credit

Why wait for payday when you can count on these buy-now-pay-later apps?

 5 Buy-now-pay-later apps that make shopping easy and help you build credit

If you have been itching to buy a new smartphone or TV but hesitating because you are low on funds, the wait is over. India’s fintech industry is booming and now there are plenty of easy financing options to choose from. No, we’re not talking about loans to purchase consumer durables. There’s a new generation of ‘buy-now-pay-later’ apps that allow you to make instant purchases and pay within 15 days at zero interest. It takes just a few seconds to confirm the transaction and pay, and no OTPs or PINs are required. What’s more, the risk of payment failure is practically zero. Impressive, eh?

Surely there must be a credit check involved? The answer is no. You do not need a credit score to use these apps. Fintech companies use alternative methods to determine how much they can safely lend you. They rely on a variety of data sources, such as your online shopping history or bank statements. The result is a seamless sign-up process and ready confirmation of your loan.

Wondering how the process works? Once you have registered, you are assigned a credit limit that is activated upon successful KYC verification. The next time you make a purchase, you can take your time (up to two weeks) to pay. Or you can choose to pay EMIs over the next 6-12 months. Automated refund tracking gives you complete peace of mind.

So, without further ado, here’s our list of the top 5 buy-now-pay-later apps.

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1. LazyPay
This app boasts more than 10 lakh downloads so far and has tie-ups with a wide range of merchants, from online shopping websites to cab companies. So, whether you are looking to sneak out of town for a quick weekend getaway or planning to order in, LazyPay has you covered. The app offers flexible EMI options ranging from 3 to 12 months, which is perfect for those lagging just a bit behind on their payments. Of course, you do have the option of paying within 15 days and saving on interest. Signing up for LazyPay is easy. All you need to do is register using your Aadhaar or PAN and you can start making transactions within minutes.

2. Simpl
If you have ever wished for a one-click payment option for all your purchases, Simpl fits the bill. The company claims to be ‘your online khata’, and makes every conceivable bill payment faster and more efficient. Signing up takes only a few seconds and your credit limit grows as you keep using the app. This is because the app uses your transaction history to determine your credit score. As with any other payment option, no interest is applicable if you make regular payments within a couple of weeks. EMI options are available in case you need a little breathing space once in a while.

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3. Paytm Postpaid
Paytm Postpaid is another option that makes waiting until payday unnecessary if you are looking to buy the latest stuff. Thanks to Paytm’s wide network of partners, you can pay at more than 5000 locations (both online and offline) via this app. Since it offers a credit limit of up to Rs 1 lakh, one wouldn’t need much persuasion to sign up. However, there is one minor detail to be aware of: a convenience fee of up to 3% is applicable on your monthly balance. The company says there are no extra charges beyond this if payments are made on time.

4. Slice
This is a Visa-partnered credit card that allows you to shop easily at over 5 million merchants. It checks all the boxes in terms of convenience, with EMI and emergency cash options available. This comes in handy in case you need a little wiggle room to see you through the end of the month. As with any credit card, you need to apply and become a member. The application can be completed via the Slice app in a few simple steps. Approval takes 24 hours. Once you’re in, you can buy stuff on no-cost EMIs for up to 6 months. The app makes it easy for you to track your purchases and earn rewards. There are no annual membership fees or other undisclosed charges.

5. FlexPay
FlexPay is billed as a digital payment solution for bill payments and money transfers. It lets you pay for a variety of purchases with a pre-approved credit line. The app boasts a multilingual interface and advanced security features. To help you resist impulse purchases, the app generates useful reports, along with easy repayment options.

So there you go. If you thought that the idea of ‘pay anywhere, anytime’ was incompatible with building financial discipline, these apps just might make you think twice! Payday loans: The next big thing in India’s consumer debt market?

Disclaimer: This article is intended for general information purposes only and should not be construed as investment  advice. You should separately obtain independent advice when making decisions in these areas.

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