Credit card bills and overspending are the blights all credit card users face. The constant awareness about this fact stops the user from fully embracing its potential.
The high-interest rates and penalties by the card companies, along with mismanagement, can also wreck the cardholder’s peace. Tracking it is also another problem, which is nerve-racking for the user, even ending up losing more money.
Wherever there is a problem, there is a solution. The solution for this credit card problem is buy now pay later (BNPL). First applied for loans, now it is in the credit card sphere too. Fewer hassles with interest-free credit are the main factors that attract them.
More and more people are attracted towards it, which is visible in numbers. According to the Redseer research firm, the Indian BNPL market will grow from present $3-3.5bn to $45-50bn by 2026, and customers from 10-15mln to 80-100mln.
Another factor that attracts people to this industry is that there are many Indians who have little to no access to formal credit.
As more and more people started using e-commerce platforms along with rising demands for easy loans, many companies such as Amazon and BharatPe entered BNPL. Most of the users belong to the age group of 18-35.
One such provider of this service is the Uni Pay 1/3rd card. Now how does this work?
In this, one can spend ₹30,000 this month and pay ₹10,000 per month for the next three months with no interest. In simple terms, they split the transactions into 1/3rd with no interest. There is no joining or annual fee.
Consumers can, if they want to, convert transactions to ‘pay in full’ at the end of the 30-day free credit period, in return will receive 1% cashback.
It is powered by Visa and is available in both physical and digital form (accessed by their app) but can only be used domestically.
Any adult between the age of 21-60 with a credit score of 760 and above can apply. There is a credit limit of ₹20,000 to ₹6 lakhs but varies according to the score per customer.
When the customer has to convert their bills into longer tenure EMI an interest rate of 14-18% will be applied. The minimum due amount should be paid in every billing cycle, otherwise, they have to pay late fees based on the slab.
Unlike other entry-level card companies, they have excellent customer care service. When ordered through their app (available in both android and iOS), one should enter Aadhaar details. The app then proceeds to check CRIF and CIBIL scores.
The virtual card will be ready immediately, and the physical card will take up to 5 days to reach the applicant. Even getting a cashback is as easy as using any e-payment app, and cards can be used and controlled by the app itself.