BNPL vs Credit Cards. is BNPL a scam?
Image source: Connective payments BNPL ( Buy Now Pay Later) is one of the biggest scams happening with users. People think BNPL and credit cards are the same, but no, there is a lot of difference between them. It just looks similar to working. Let's clear that, how credit cards work. Credit cards are directly issued by the banks and they lend you their money. Simply, you are using the bank's money directly. Banks give you a specific 30 to 45 days period to return/repay that money without zero interest or you can also pay money in EMIs. If you didn't repay the money in that period then banks charges interest of about 24% to 48% p.a. as fees. But this bank's money when you use it shows in the bank's loan book. For example, if you use the credit card of XYZ bank and purchase RS5000 worth of anything then it will be recorded in the bank's loan book that RS5000 is lent to this specific person. Now you might get understood how credit cards work. Let...