They are having a profit and a purpose. BNPL which means buy now and pay later. They are many BNPL apps like Simpl, ZestMoney, LazyPay, Flexmoney, ePayLater, Paytm Postpaid, OlaMoney Postpaid, and Amazon Pay Later.
These apps make a lot of money in different ways. Let's know how this works.
Sukesh is a graduate student, who wants to buy a new watch.
The watch’s cost is 15000/-
He only has 8000 as his pocket money. As he can't take that 8k then BNPL comes into the picture.
It helps Sukesh to buy the product by just paying 5000 per month for 3 months.
So, Sukesh can buy his watch now and pay later.
This way many students and people who are not earning like to use this app and get benefits.
Now, Coming to the question of how they make money from this.
- When he buys this watch from titan he will pay a complete 15k by the end of 3 months. Now this app (BNPL) charges a 5% commission from titan and makes money out of it. As students like this concept, many come and place their orders.
- Let's discuss the negative side of this case. If Students can’t pay their rest amount in the following next month then they have to pay massive interest to these apps (BNPL). This is another way of making money for BNPL.
Happy Learning:)
Comments
Post a Comment