Praveen Paulose, MD -; CEO, Celusion Technologies

10 May 2022 , 08:17 AM

In an interaction with Mamta Maity, indiainfoline.com, Praveen Paulose, MD & CEO, Celusion Technologies said “ Like credit cards, BNPL loans have to be repaid on a timely basis to avoid potential credit score damage. Buy now, pay later may be especially appropriate for people who’ve had trouble getting approved for a traditional credit card.”

What genre of clients does your brand have under the BNPL sectors?

Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them at a future date. The growing market share of BNPL is an integral opportunity for Celusion Technologies and we are delighted to have BelCash Egypt as our first international client amongst other national clients.

BelCash Egypt is a financial institution that acts as a reliable financing tool to facilitate the purchase of products and services, offering customized solutions and flexible payment plans tailored to one’s needs. Considering this is an evolving sector in India we look forward to working with more such brands in future.

How does BNPL help the brand as well as the users? What are the points that a software developing company needs to keep in mind for its client?

It is just recent that India has adapted the BNPL however, it has developed at a blazing speed. BNPL is considered the most successful model in developed counties. As facilitates convenience, one can easily apply online and with a few easy steps, the credit can be approved. Users can pay off purchases in instalments, typically with no interest charges and also choose a payment frequency that fits their budget (at some BNPL providers).

In terms of software development, each brand has its terms according to its target audience and services. Speaking generally, below are some basic parameters that a company follows:

• Fraud prevention
• Faster & more data
• Credit checks
• Automated payment processing
• In-built regulatory compliance

Do you believe that BNPL is going to affect credit card issuers?

Each of those (BNPL, credit cards) have some advantages and disadvantages. Like credit cards, BNPL loans have to be repaid on a timely basis to avoid potential credit score damage. Buy now, pay later may be especially appropriate for people who’ve had trouble getting approved for a traditional credit card. Unlike credit cards, BNPL plans often charge no interest, except for late fees for missed payments

Buy now, pay later plans and credit cards are both options to consider when making purchases online or in stores, but BNPL will not cause many effects to issuers as it’s still helpful to have at least one credit card to use in situations where buy now, pay later doesn’t apply.

In the near future, how much percentage of the market do you expect to get into the BNPL sector?

In India, the popularity of BNPL as a mode of credit-based payment has increased significantly within the past couple of years, especially among millennials and Gen-Z. In fact, in the coming years, the Indian BNPL market may surpass the global market as the market is expected to grow 10x in value over the next five years, from $3.5-4 billion in 2021 to $35-40 billion in 2026. A large percentage of the global buy now pay later market’s growth is driven by the availability of affordable and convenient payment methods provided by pay now pay later platforms and the growth of e-commerce.

Can BNPL hit a consumer’s credit score and get them into a major debt trap?

Most buy now, pay later companies only require a soft credit check for approval, which doesn’t affect the individual’s credit score. However, others may conduct a hard pull of the credit, which could knock a few points off one’s score temporarily.

When it comes to buying now, pay later plans, consumers need to take note of things like Which retailers accept it, deposit requirements, Number of instalment payments, Interest charges (if any), Fees (if any), Refund and return policies and so on. Preventing debt will depend on consumers making responsible financial decisions.

Is Celusion expecting any new national/internal clients on board in the near future?

We’re always looking forward to collaborating with new clients both national & international. Currently, BelCash Egypt is our client in focus. Although new additions are always welcome.