New Delhi, May 5 -- Buy Now, Pay Later or BNPL is a short-term financing tool offered by fintechs that allow customers to purchase items first and then repay the amount in installments over an agreed period of time. Some companies also offer BNPL on interest-free basis, which makes it more appealing over EMIs and credit cards for some users.

A simple and convenient payment option with usually short repayment tenures BNPL is offered by online merchants or fintech companies regulated by the Reserve Bank of India (RBI) in India.

When you sign up for BNPL with a provider, it is the lender / company that makes the upfront payment for your item while you agree to repay the loaned amount over a predetermined period in installments.

Your repay...