Buy Now Pay Later: A Complete Guide on BNPL in India

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Chapter 1:

Introduction: BNPL in India

Buy Now Pay Later is a buzzword we have all heard, especially over the last couple of years with the pandemic changing the world as we know it.

But exactly what is Buy Now Pay Later?

Buy Now Pay Later is a financing option that allows customers to spread their payments over a relatively short period of time instead of paying upfront. BNPL, as it is commonly known, gives customers the flexibility of raising credit, often interest-free.

The BNPL landscape in India is booming and media reports predict a growth of over ten-fold before 2026. And why not, with BNPL making it easier for consumers, especially online shoppers, by offering interest-free credit and fewer obstacles to jump through.

Research firm Redseer predicts India’s BNPL market, pegged currently at $3-3.5 billion, will skyrocket to $45-50 billion within the next four years while the number of users will increase to around 100 million customers from the current figure of 10-15 million.

To that end, companies like ZestMoney are leading the charge to make credit accessible to millions across India while keeping it affordable.

Customers can use Zest-Money’s BNPL facility to buy everything from groceries, food and medicines to laptops, TVs and fridges. 

The above is just a gist of what is BNPL. 

Visit ZestMoney today and shop with India’s largest and fastest-growing fintech company!

Visit today and shop with India’s largest and fastest-growing fintech company!

Chapter 2:

Decoding Buy Now Pay Later

How does BNPL work?

When you shop at one of the partnering retailers and make a purchase, you will have the option of ‘Buy Now Pay Later’. 

Once you opt for the service, you will have to make a small down payment, which will be a small percentage of the full purchase amount. 

After you make the down payment, you can then structure your repayment schedule in a series of interest-free EMIs and enjoy your purchase without worrying about the cost. This allows customers to shop now pay later

Eligibility criteria 

However, to fully enjoy the benefits of BNPL with ZestMoney, you must of course tick certain boxes. To avail buy now pay later in India:

  • You should be a resident of India
  • Should be at least 20 years old
  • Have the required documents
  • Live in a Tier 1 or Tier 2 city in India (in some cases)
  • Be a salaried individual
  • Have a bank account and KYC details

Check out our simple explainer video on the Eligibility criteria 

Eligibility Criteria for ZestMoney Account

How can you Buy Now Pay Later with the ZestMoney app?

Customers will find it very easy and simple to enjoy the Buy Now Pay Later benefits using the ZestMoney app. It is just a 3-step process to avail pay later options:

  • Download the ZestMoney app: Download the app from your phone’s app store and type in your details to complete the profile. Once completed, the ZestMoney app will display your credit limit. Watch this short video on how to open a ZestMoney account.
  • Activate: Upload your KYC details and set up automatic repayments from your bank account.
  • Use: You are now set to use the ZestMoney App to make your dream purchase from 100,000 offline and 15,000 online partner stores.

And that’s how simple and hassle-free it is for customers to avail ZestMoney’s Buy Now Pay Later advantage; As easy as 1, 2, 3! 

We have also published a short video on How to shop with ZestMoney for your convenience to further understand buy now pay later apps in India.

Credit limit without Credit Score 

Online traditional money lending institutions, ZestMoney does not ask for your credit score in order for you to raise credit with us. For millions of households in India, ZestMoney is their first brush with any sort of formal credit. 

You are assigned a credit limit based on your employment and salary details and other data points that exclude a Credit Score. If you are a new user to ZestMoney, you will get a credit limit of up to Rs. 1 Lakh, which will then go up to Rs. 2.5 Lakh if you make more purchases so that you can shop now pay later

We have published a simpler explainer video so that you get to know all about your ZestMoney Credit Limit.

All about your ZestMoney Credit Limit

Documents Required/eKYC procedure

Before you finalise your profile and get credit from ZestMoney for your dream purchase, you will need to produce the required documents to complete the eKYC procedure. 

KYC stands for Know Your Customer and every customer needs to go through this procedure before raising credit, as per RBI guidelines. The documents required to complete this mandatory procedure can be clubbed under two verticals: ID Proof and Address Proof

ID Proof 

The Government of India has listed six Officially Valid Documents (OVDs) that you can submit in lieu of your Identity Proof. These documents are:

  • Passport
  • Driver’s Licence
  • Voter ID
  • PAN (Permanent Account Number issued by the Indian Income Tax department to all Indian citizens) Card
  • Aadhaar Card, and 
  • NREGA (National Rural Employment Guarantee Act) Card. Please note that NREGA has been recently rebranded as MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)

Address Proof

Now comes the small matter of your Address Proof, which you will need for buy now pay later apps in India . This is a very important step in the process of completing your eKYC. If the address given in your ID Proof (refer above) is the same as your current address, then you have crossed this step with no further hurdles.

However, if your current address does not match with the address mentioned in the documents submitted for ID Proof, then you are required to provide further documents towards Address Proof.

The Government of India will accept one of the following documents as proof of address:

  • Telephone Bill 
  • Gas Bill 
  • Phone Bill
  • Ration Card
  • Electricity Bill 

If you would like to know everything about KYC process steps, we have an explainer blog for that provides all the details.

What do you need to know about buy now pay later apps? 

By now you’re aware of what is BNPL, what is buy now pay later, how it works and the documents required to avail of pay later options

Let us now look at what these pay later apps offer customers and things you need to know about. 

Advantage of pay later apps 

  • Ease of use: ZestMoney’s mobile app is so easy and friendly to use, you will have no trouble from the time you open the app up until when you confirm your purchase. Pay later apps, such as ZestMoney’s app, are integrated in the checkout process at one of our Partners online stores. This ensures approvals decisions are confirmed almost instantaneously and you are able to make your dream purchase hassle-free.
  • No credit history: For millions of households in India, ZestMoney is their first introduction to any type of formal credit. Therefore, to make it easier for you to upgrade your life ZestMoney does not require customers to have credit history to opt for this financing option.
  • Partner connection: ZestMoney has partnered with over 8,000+ brands and some of the biggest e-commerce names such as Amazon, Flipkart, Myntra, Nykaa, Mi and more. 
  • Building credit: Customers should be aware that using ZestMoney’s BNPL financing option will not build up their credit. 

ZestMoney has one of the best pay later apps. Sign up today!

How to Repay EMI (3/6/9/12 Months) options

ZestMoney customers have the flexibility of making their purchase in one go while paying for it in multiple, bit-sized payments. Customers can repay ZestMoney by choosing between 3, 6, 9, and 12 month EMI options. 

Where can you shop using use the ZestMoney Credit?

With ZestMoney’s BNPL financing option, one of the pay later services, you can buy from across 8,000+ brands on products varying from EdTech services and Furniture to Laptops, smartphones, and fly now pay later on buy now pay later apps in india.

ZestMoney has partnered with some of the biggest e-commerce names you have already heard of like Amazon, Flipkart, Myntra, Nykaa, Mi and more.

Click on the link to know more about ZestMoney’s partner stores and what is buy now pay later.

Download ZestMoney App right now from the Play Store and sign up to get your credit limit in 5 minutes!

Chapter 3 :

Benefits of Buy Now, Pay Later. Why choose ZestMoney?

The advent of BNPL in India has democratised credit lending, with the customers now having the ability to spread their payments by utilising pay later options without worrying about interest rates.

ZestMoney is the largest and fastest-growing consumer lending fintech company in the country. The company’s mission is to make a positive impact on more than 300 million Indian households, who struggle for credit owing to insufficient credit history.

Using innovative technology, ZestMoney’s platform makes Indian consumers’ life easier by connecting them with lending partners and managing their credit for them. 

This mission to make Indian customers’ life easier by offering such pay later services has even garnered them international recognition, having been selected as a 2020 Technology Pioneer by the World Economic Forum. 

Some of the benefits of using ZestMoney’s BNPL financing option are:

  • Instant access: No more jumping through hoops and waiting anxiously to avail credit as ZestMoney makes it easy and hassle-free to finance your purchases.
  • No-cost EMI: Repay the credit with 0% interest in 3-4 bite-sized payments.
  • More affordable: No hidden charges to access your credit. 
  • Transparent process: The ZestMoney app has all the details regarding your credit limit and other relevant information so that you are not left in the dark.
  • Safe and Secure: ZestMoney’s unique platform uses Artificial Intelligence to safeguard your online transactions at any of our partner stores
  • Flexibility: Depending on your needs, you can choose how and when to repay

To enjoy these benefits and more visit ZestMoney right now or download the app on the Play Store right away!

Chapter 4 :

BNPL Vs credit card – How is BNPL better than credit card?

People often ask how is Buy Now Pay Later any different than a credit card? Let us look at a few differences between the two financing options that give you a clearer picture.

Credit Cards BNPL
Hidden Charges Transparent, low-cost pricing model
You need good credit history No need of a prior credit history
Shorter interest-free period Interest-free credit period up to 2 years.
Difficult to get approval Easy and hassle-free approvals
Interest rate up to 48% in some cases 0% interest rates

No more high interest rates for you! Enjoy No Cost EMIs at ZestMoney.

Chapter 5 :

BNPL Vs Personal loan – Which is right for you?

Personal Loan is a traditional financing option, which people have solely relied on until the rise of BNPL. Just like Credit Cards, a personal loan also differs from Buy Now Pay Later,a type of pay later loan. Let us look at the differences.

Personal Loan


Direct credit to your bank account

Credit raised against eligible purchases

One-time loans

Revolving credit

Higher interest rates

No-cost EMIs

Based on credit score, age, income, etc

More democratic 

Takes long time to raise credit

BNPL is activated within minutes

Longer repayment schedule

Bite-sized repayments

No more paper work, no more credit history! Join the revolution at ZestMoney and download the app right away!

Chapter 6 :

BNPL Vs POS Offering – Which is better?

POS lending, the acronym for Point of Sale, is a type of financing where you are given credit to the amount of your purchase by swiping your credit card (like Mastercard/Visa) against a card accepting machine. 

The POS system has been the core of many businesses across sectors and is found everywhere from your local grocery store to malls, high-end shops, food establishments and beyond.

POS system is a combination of hardware (card and card accepting machine) and software, which processes your transaction, payment methods in association with your bank, and other value-added services. 

So, how does a POS transaction work? 

When you swipe your card – inserting and single tapping are other options — at the machine, the payment is initiated. You are then asked to verify this payment by authenticating it via a 4-digit pin. 

Your card’s payment network (Visa/Mastercard) then contacts your associated bank (HDFC/Axis/SBI etc) to verify this purchase. If there are no issues with your account, the bank gives the green light by approving the transaction. 

This approval is then generated in the form of a receipt, which signals the success of your transaction. 

POS lending does defer from a BNPL service. The differences are as below:

POS Lending


Requires external device/hardware for transaction

BNPL transaction is completed by a few clicks in your device

Requires physical credit/debit card

You can link your card with the BNPL service

Typically used for large purchases

You can buy daily items using BNPL

Repaid over a longer period

Repaid over a short tenure

Credit history required

No credit history

Charges user interest

No-cost repayment

Want to join the pay later revolution that’s capturing the imagination of India? Visit ZestMoney and download the app right away!

Chapter 7 :

What can you buy with ZestMoney’s BNPL?

Now that you are aware of the benefits of BNPL and why ZestMoney is your go-to destination for making your dreams come true, let us look at some of the products and services you can purchase. 

Zest has partnered with so many brands from across the world for your benefit and across a variety of sectors as well to offer such pay later services

Popular stores such as Amazon, Flipkart, Myntra, Nykaa and Mi have joined hands with Zest to make life affordable for you: 

Your dream international trip is no longer only a dream, thanks to ZestMoney. Download the app and travel far and wide!

Chapter 8 :

Why choose ZestMoney for Buy Now Pay Later?

ZestMoney is the fastest-growing and largest fintech company in India, which is making a positive impact on millions of households in the country who can shop now pay later. Five reasons why you should choose ZestMoney for Buy Now Pay Later:

  • Low cost: ZestMoney charges 0% interest and does not levy any hidden charges or joining fees.
  • Credit Limit: ZestMoney can provide you a credit limit of up to Rs. 2.5 lakh.
  • Connectivity: ZestMoney is accepted at 10,000 online stores and 75,000 physical retail stores. 
  • Fast approval: ZestMoney’s 3-step approval process is lightning quick and requires no paperwork, no credit card and no credit history.
  • Positive Impact: ZestMoney has more than 11 million happy customers and is growing, and we have a 4.7 star rating on the Play Store.

If you’d like to join the BNPL revolution with ZestMoney, download the app and create your account today! It’s free!

Chapter 9 :


The advent of Buy Now Pay Later has democratised credit raising in a country as huge and diverse as India. 

ZestMoney is at the heart of this innovation, which has empowered 300 million households in the country, who would have otherwise struggled to raise credit to upgrade their lives. 

ZestMoney’s innovative technology, hassle-free procedures, No-Cost EMIs, and more, not only make it easier for consumers to realise their dreams, but also safer. You can enjoy the facility of book now pay later flights if you like to travel now pay later

And with adoption increasing as more people start to experience the benefits of ZestMoney’s service, BNPL is set to become the preferred payment option for Indian households in the very near future.

So, what are you waiting for? Visit ZestMoney and upgrade your life without worrying about how to finance it!

Chapter 10 :

Frequently Asked Questions on Buy Now Pay Later

  • How do buy now pay later apps work?

    Once you download the app, enter your personal details and your KYC information to find out your credit limit. After your credit limit is shown, you can then make eligible purchases that suit your need. 

    Sign up with ZestMoney today, one of the best pay later apps in India.

  • Will buy now pay later replace credit card?

    Not necessarily. However, BNPL is set to become the preferred choice of payment in Indian households.

  • How big is the BNPL market?

    The BNPL market is currently valued at $3-3.5 billion. Research firm Redseer predicts this figure will skyrocket to $45-50 billion within the next four years while the numbers of users will increase to around 100 million customers from the current number of 10-15 million.

  • Do you need a credit card for BNPL?

    No, you don’t need a credit card for BNPL. If you have one, you can link it as an instrument of your repayment schedule.

  • Is BNPL a loan?

    It is a type of installment loan where you repay the amount in Equated Monthly Installments (EMIs) just like a traditional loan.

  • How do I pay with BNPL?

    You can pay by either check, bank transfer, debit card, credit card or bank account deduction.

  • How does BNPL work for merchants?

    Merchants partner with fintech companies that offer BNPL financing option to offer customers a convenient payment option in lieu of traditional modes like credit/debit cards.

  • Why do Millennials like BNPL?

    Apart from ease and safety of transaction, the main draw for millennials is the tie-ups ZestMoney has with a wide range of brands across sectors, which allows them to book now pay later flights, for example.

  • Why is BNPL growing?

    The two main factors why BNPL is growing are No-Cost EMIs and the non-requirement of prior credit history.

Enjoy No Cost EMIs, ease of transaction and other life changing benefits with ZestMoney.