On June 20th, RBI issued a direction disallowing non-banking Prepaid Payment Instruments (PPI) from loading credit...

109 Boards 116 Marks 0 Likes 0 Followers 0 Following 0 Unfollowers 4 views

Marked 2 years 4 months ago onto What’s Buy Now Pay Later (BNPL)? Why is it in the news?

On June 20th, RBI issued a direction disallowing non-banking Prepaid Payment Instruments (PPI) from loading credit lines on the PPI. This bans PPI wallets from being loaded with credit lines/credit cards.

What is BNPL?
BNPL is short-term financing for consumers who can buy products and get short-term credit and pay later for the credit taken. Well, isn't that what credit cards are used for as well? The concept of BNPL is similar to that of credit cards wherein a consumer makes a purchase through a credit line and the payment is done later- quite literally "Buy Now, Pay Later". The BNPL market has grown a massive 539% in 2020 and 637% in 2021.

Category:

Software

Report Mark

Report This Pin as Inappropriate

Please select the category that most closely reflects your concern about the Pin, so that we can review it and determine if it violates our Community Guidelines or isn't appropriate for all viewers. Abusing this feature is also a violation of the Community Guidelines, so don't do it.