Pay Later
Pay Later (also known as Buy Now, Pay Later) is a payment mode that allows customers to complete a purchase immediately and defer the payment to a later date. Unlike EMI, which splits the amount into monthly installments, Pay Later typically lets the customer pay the full amount after a short grace period (often 15-30 days) or split it into a few interest-free installments.
What is Pay Later
Pay Later providers extend a credit line to eligible customers, allowing them to make purchases without immediate payment. The Pay Later provider pays the merchant upfront, and the customer settles the amount with the Pay Later provider according to the provider's repayment terms.
Pay Later payments in Nimbbl are identified by the payment_mode value Pay Later in the payment response. Each provider has its own authentication, eligibility check, and repayment terms.
Key characteristics of Pay Later:
- No card or bank details required — the customer authenticates directly with the Pay Later provider, typically using their mobile number and OTP
- Instant approval — eligibility is checked in real time during checkout based on the customer's profile with the provider
- Deferred payment — the customer pays the Pay Later provider later, not at the time of purchase
- Merchant receives full payment upfront — the Pay Later provider settles the full order amount to the merchant
- Credit risk managed by the provider — the merchant bears no credit risk; the Pay Later provider handles collections
How Pay Later Works
The Pay Later payment flow during checkout follows these steps:
- Eligibility check — when the customer reaches checkout, Nimbbl checks eligibility with each configured Pay Later provider in real time. Only providers where the customer is eligible are displayed
- Customer selects Pay Later — the customer chooses the Pay Later payment mode and selects from the eligible providers shown
- Authentication — the customer authenticates with the provider (typically via OTP sent to their registered mobile number)
- Payment confirmation — the Pay Later provider confirms the transaction. The merchant receives payment from the Pay Later provider, and the customer's Pay Later account is debited
- Repayment — the customer repays the Pay Later provider according to the provider's terms (lump sum after grace period, or short-term installments)
Supported Pay Later Providers
Nimbbl integrates with multiple Pay Later providers through its payment partners. Common Pay Later providers available on the Nimbbl platform include:
| Provider | Repayment Model |
|---|---|
| LazyPay | Pay within 15 days or convert to EMI |
| Simpl | Pay in the next billing cycle (bi-monthly) |
| Mobikwik Zip | Pay within the billing cycle |
| Ola Postpaid | Pay later within the billing cycle |
The list of available Pay Later providers depends on your payment partner configuration. Not all payment partners support every Pay Later provider. Contact your Nimbbl account manager for the most current provider availability.
Customer Eligibility
Pay Later eligibility is determined by the Pay Later provider, not by Nimbbl or the merchant. Each provider has its own criteria for approving customers:
- Registration — the customer must have an active account with the Pay Later provider. Some providers allow instant sign-up during checkout
- Credit limit — the provider assigns a credit limit based on the customer's profile. The order amount must be within this limit
- Repayment history — customers with overdue payments may be ineligible
- Transaction limits — some providers impose minimum or maximum transaction amounts
If a customer is not eligible with their selected Pay Later provider, the checkout allows them to choose a different payment mode or a different Pay Later provider (if available).
Pay Later can improve conversion for customers who prefer not to use cards or bank transfers. Enabling multiple Pay Later providers increases the likelihood of customer eligibility. Use Boostr Personalisation to surface relevant Pay Later options for your customers.