Save Now Pay Later(SNPL) apps are meant to save money for users so that they can buy their desired products or services in the future.
These apps block your money as you give them permission and release it on the specified date or once the target has been achieved. You can even withdraw your funds between the tenure without any hassles.
I used most of these apps myself and ranked them from best to worst. So, let’s get started and find out everything about the new fintech segment of SNPL.
What Are SNPL Apps?
SNPL apps let the users save money for future payments by depositing their funds on the platforms. These funds are kept in various financial instruments by the apps and are later released for any purchase or goals set by the user.
Now, the best part about these apps is that they offer various discounts on the purchases done from their platforms.
These discounts are made either by the merchants or by the SNPL apps themselves. So, in short, these apps let you buy your favorite products at discounted prices and also keep you away from credit.
Different apps have different ways of handling the funds of their customers. Some deposit it in an Escrow account for a time period whereas, some deposit it directly in the merchant’s account in the form of advance payment.
Now, if you are getting confused between SNPL and BNPL apps then the next segment will clearly show you how they both are so different.
How Is SNPL Different From BNPL?
BNPL apps let you make purchases by using credits. This means, that you can buy anything without using your own money and later pay it back to the apps. This process involves your credit score and various other credit measures.
On the other hand, SNPL apps let you make transactions from your own money. There is no kind of credit involved in this method. These apps make you save for the long term and block those funds. In the end, when you have saved a sufficient amount, these apps let you make the purchase and even offer discounts.
There is a lot of difference in the psychology of these platforms as well. Let’s understand this in detail.
Consider that you want to buy a new pair of shoes that cost around Rs.10,000 but you don’t even have half of those funds. Now, you’ll see the option of buying those shoes immediately on credit and paying it back in monthly installments without any extra interest.
This makes a consumer think that it is a win-win situation for him, whereas, things are just the opposite. This easy credit makes you vulnerable to catchy marketing techniques by these platforms.
This is because when you buy those shoes with credit, your finances for the following month will suffer a huge blow, as now you have to pay back the remaining amount in EMIs.
This increases the burden on your pockets instantly.
Now, let’s say that you opted for an SNPL platform to buy the same shoes. The only drawback of this will be that you won’t get your hands on those shoes immediately. You must wait until you yourself have sufficient funds to buy them.
You will do this by depositing a fixed amount periodically on the platform, and the SNPL app will keep on accumulating this sum. After some time, you will buy those shoes with your own money without the fear of credit or EMIs.
This is how the BNPL apps make you spend more than you should and the SNPL apps help you in resisting impulsive shopping.
Talking about making profits, both SNPL and BNPL are quite similar. Both of these apps make money through the merchants as they offer their products on their platforms.
Through this, they indirectly increase the sales and hence charge a commission from these merchants. BNPL apps also make money if the customers are unable to pay back the amount within the time period in the form of interest.
By now, you must have understood SNPL and how they are different from BNPL. So, let’s dive straight into the list of the best SNPL apps in India.
Best SNPL Apps In India
The following SNPL apps are ranked on their number of features, user interface, and customer satisfaction. I will try to explain how these apps work along with their highlights. So, let’s start with the number one SNPL app in India.
EasyPlan is a Save Now Pay Later app that lets you collect funds for a future payment. You can start saving with as low as Rs.100. It deposits your savings in low-risk investing instruments. These investing instruments are debt securities that offer a good interest rate and bear very minimal risks.
There are two investing options with very little risk on the platform. If you have a goal whose duration is less than 6 months, your money will be transferred to ICICI Prudential Liquid Fund whereas, for goals that have a duration of more than 6 months, you can keep your funds in ICICI Prudential Savings Fund.
Now, the best part is that you can withdraw your liquid funds whenever you want. There is no locking period and the risk involved in these funds is very low.
EasyPlan also sends you timely notifications and reminders to save money for your goals and deposit it on the platform.
- Save money through Net Banking or even UPI
- Get reminders on your upcoming deposits for the saving funds
- Withdraw your money anytime you want
- A customized goal tracker to monitor your progress
- Get your funds in your account in 1-2 business days
Hubble is a saving app that offers a guaranteed 5% extra reward if you redeem your funds on the platform instantly. It also offers a 10% extra reward if you save for your goal in the app and later complete the purchase.
You can easily make timely payments in the app and as the goal is complete, you get an extra 10% reward. However, if you change your mind and withdraw your funds before the goal is achieved, you don’t get any rewards.
The funds are being deposited into RBI-licensed banks that offer maximum safety. It does not invest your money anywhere but stores it in its partner banks.
- Your rewards are non-taxable
- Get guaranteed rewards on instant payments or planned payments
- Withdraw your money anytime within seconds
- Timely offers and rewards from Hubble
- No fees or charges
Multipl offers various low-risk investment options that not only let you grow your money but also help you in achieving your goals by making savings. You can easily save a lot of funds through this app by using it timely. It lets you invest in commission-free direct mutual funds that have good returns and bear low risk.
You can easily invest through a SIP or even lump sum without paying any commission. Multipl is registered with SEBI, which makes it safe and secure for the users. You can easily withdraw, redeem, or stop your funds with one click whenever you want.
- Automated SIP payments
- Registered with SEBI
- Tracks your goals and funds performance for better insights
- Up to 25% off on returns and benefits from merchants
- Unlock challenges, levels, and milestones and win various rewards
Tortoise is a bit different than the two SNPL apps mentioned till now. Instead of investing the saving funds of the users, Tortoise deposits it in RBI-regulated Escrow accounts. This amount remains locked till you want to acquire it. There is a very simple procedure to get started with Tortoise.
Simply go on the app and select the brand and product you want to buy. After setting up the duration of the fund, you can now start saving for it.
Keep depositing the funds till that goal is achieved. You can even withdraw this sum anytime you want. Also, get various rewards and benefits by saving up on Tortoise.
- Get attractive cash rewards
- Withdraw your funds within seconds
- Get rid of EMIs and Loans
- Risk-free as it deposits your funds in an Escrow account
- Zero fees
All of the above apps do offer some really great offers and rewards to their users. Unlike BNPL apps, these apps actually help you make the right financial decisions by helping you save more and staying away from credit.
Make sure to go through all the terms and conditions of these apps before you invest any funds in them. I hope this blog was good enough to help you decide on your idle Save Now, Pay Later app.
Comment down your favorite part from the blog and whether you find these apps useful or not?
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