Beyond Transactions: A Comprehensive Examination Of BNPL In India

Sakshi S. Ranadive, B.L.S. LL.B., Government Law College, Mumbai

ABSTRACT

Buy Now Pay Later (BNPL) is a payment method that allows customers to make purchases and pay the cost later, without incurring any interest. This comprehensive analysis delves into the emergence and evolution of BNPL in the Indian Fintech industry, particularly in the context of the COVID-19 pandemic’s economic repercussions. It examines the business models, benefits and alterations from traditional credit card schemes, while also underlining the prominent players in this sector. Despite the immense growth and usage of such models, there are yet no steps taken to separately regulate such a framework. The paper further seeks to explore the regulatory complexities and challenges faced by BNPL models from the Central Bank. The faster acceptance of the model amongst consumers, therefore also underscores the need for clear regulatory aspects and stricter Know Your Customer (KYC) norms to ensure consumer protection and foster a resilient financial ecosystem for the survival and expansion of BNPL services.

Keywords: Buy Now Pay Later, Fintech, Regulations, Business models, Challenges