UPI Now, Pay Later

UPI Pay Later: Shop now, pay later with our UPI app. Enjoy effortless UPI Pay Later convenience.
UPI Now, Pay Later
SET UP UPI
5 mins
08 July 2024

Overview about UPI Pay Later

UPI Pay Later is a new feature in the Unified Payments Interface (UPI) system. It allows users to make payments immediately and settle the amount later. This service provides a pre-approved credit line that can be accessed through UPI apps. Users can use this credit for various transactions, including online shopping and bill payments. The feature is aimed at enhancing the convenience of digital payments by offering a flexible payment option. UPI Pay Later is expected to drive further adoption of UPI, given its ease of use and the growing preference for cashless transactions in India.

UPI Pay Later: New UPI feature

  • UPI Pay Later offers a pre-approved credit line to users.
  • It allows immediate payments with deferred settlement.
  • Users can access this feature through UPI-enabled apps.
  • The service aims to increase the convenience of digital payments.
  • UPI Pay Later can be used for various UPI transactions, such as shopping and bill payments.
  • This feature is expected to boost UPI adoption in India.
  • It provides a flexible payment option for users.
  • The service is designed to meet the growing demand for cashless transactions.

What is a pre-approved credit line for UPI users?

A pre-approved credit line for UPI users is a set credit limit provided by financial institutions. This limit allows users to make payments using UPI even if they do not have sufficient funds in their bank account. The credit line is pre-approved, meaning users do not need to apply for it every time they make a transaction. Instead, they can use the available credit and settle the amount later. This feature aims to provide users with more flexibility and convenience in managing their finances. It also ensures that users can complete transactions without interruptions, enhancing the overall user experience.

Use UPI Pay Later: What has changed for users?

With UPI Pay Later, users experience a significant shift in how they manage payments. Previously, users needed sufficient funds in their bank accounts to make UPI transactions. Now, they can access a pre-approved credit line, enabling them to pay later. This change offers greater flexibility in handling expenses and helps in managing cash flow more effectively. Users can complete transactions without worrying about immediate funds. This feature enhances convenience, making digital payments more accessible and user-friendly. Additionally, it caters to the growing preference for cashless transactions, supporting the digital economy.

Interest rate and other charges of UPI Pay Later

UPI Pay Later typically involves interest rates and other charges, similar to credit card payments. The interest rate depends on the financial institution providing the credit line. Some providers may offer an interest-free period, during which users can repay without incurring additional costs. After this period, standard interest rates apply. Other charges might include late payment fees, processing fees, and penalties for exceeding the credit limit. Users must check the specific terms and conditions of their UPI Pay Later service provider. Understanding these charges helps users make informed decisions and manage their finances responsibly.

How UPI credit line is different from a credit card on UPI?

A UPI credit line differs from a credit card on UPI in several ways. The UPI credit line is directly linked to the user's UPI account, allowing seamless transactions without needing a physical card. It provides a pre-approved credit limit, which users can access through UPI apps. On the other hand, a credit card on UPI involves linking a physical credit card to the UPI system. Transactions are processed through the credit card issuer, and users need to carry the card for transactions. The UPI credit line offers a more integrated and convenient digital payment solution, enhancing the user experience.

Conclusion

UPI Pay Later is an innovative feature that revolutionises the way users manage digital payments. By offering a pre-approved credit line, it provides flexibility and convenience, making it easier for users to handle their finances. This feature supports the growing trend of cashless transactions and boosts the adoption of UPI. Users can make payments immediately and settle the amount later, enhancing their overall payment experience. Understanding the interest rates, charges, and differences from traditional credit cards helps users make informed decisions. UPI Pay Later is set to play a significant role in the future of digital payments in India.

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What is UPI Pay Later?

UPI PayLater is a feature allowing users to make payments immediately and settle the amount later, using a pre-approved credit line linked to their UPI account.

How to activate UPI Pay Later?

To activate UPI PayLater, users need to check if their UPI app supports the feature, then follow the in-app instructions for activation, usually involving verification and acceptance of terms.

How can I activate UPI PayLater in HDFC?

To activate UPI PayLater in HDFC, users must log into the HDFC mobile banking app, navigate to the UPI section, and follow the prompts to activate the PayLater feature.

How to activate PayLater?

Activating PayLater involves selecting the feature in the UPI app, completing verification processes, and accepting the terms and conditions provided by the service provider.

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