Understanding UPI Pay Later

UPI Pay Later is a recently introduced feature that empowers users to make online payments using a pre-approved credit line from their banks. The beauty of this feature lies in its flexibility. Users can seamlessly link their credit lines to the UPI system, granting them access to the ‘Pay Later’ option at the checkout page of various merchants and platforms.

How UPI Pay Later Works

Once you opt for ‘Pay Later,’ you can repay the borrowed amount within a specified period, which typically ranges from 15 to 90 days. 

The exact repayment terms may vary based on your bank and the plan you choose. 

Some banks offer interest-free periods, ensuring you won’t incur additional costs if you pay within this timeframe.

UPI Pay Later is a convenient lifeline for individuals facing cash crunches towards the end of the month or those needing instant credit for unexpected emergencies.

Benefits of Pay Later UPI

One of the prime advantages of Pay Later UPI is the ability to access short-term credit for online purchases and bill payments. 

Users have the freedom to repay the amount later, either with or without interest. This financial flexibility not only helps manage expenses but can also be a tool to improve your credit score, save on transaction fees, and access attractive deals and discounts from merchants.

UPI Now, Pay Later: A Banking Innovation

The banking environment has witnessed a significant innovation with the introduction of UPI Now Pay Later. This feature, enabled by the Reserve Bank of India, allows users to link their pre-approved overdraft facilities from banks to the UPI system for seamless payments.

How UPI Credit Line Differs from a Credit Card on UPI

A UPI credit line differs slightly from a UPI credit card. Banks typically demand numerous documents for credit card issuance, excluding many without formal income records. 

UPI credit lines only require basic personal account verification, making it accessible to a broader range, including small borrowers and business owners, for managing working capital.

Conclusion

UPI Pay Later services offer users a lifeline for flexible online payments, including HDFC Pay Later and ICICI Pay Later. They empower individuals to manage their finances with ease and convenience. However, using these services responsibly is essential, as adhering to terms and conditions, and ensuring timely repayments to avoid penalties and safeguard your credit score.