Amazon Pay Later vs. Paytm Postpaid: Which is the Better Option for You?

When it comes to paying bills, there are a few different options available to you. You can pay by check, bank transfer, or credit card. But these days, more and more people are turni

ng to digital payment methods like Amazon Pay Later and Paytm Postpaid. So which one is the better option for you?

Let’s take a look.

What is Buy Now, Pay Later (BNPL)?

BNPL is a payment option that allows you to purchase items now and pay for them in monthly installments. This is a great option for people who don’t have the cash on hand to pay for something all at once. With BNPL, you can spread out your payments over a number of months, and you won’t have to pay any interest on the purchase.

According to a Reuters report, the global BNPL market is expected to rise more than 10-fold in the next four years. At present, the BNPL market is estimated at $3-3.5 billion. But by 2026, it is expected to reach $45-50 billion. The number of users in India will also soar to 80-100 million customers by then from 10-15 million now.

So, its very impoartant to understand difference between Amazon Pay Later and Paytm Postpaid before using any of the service.

What is Amazon Pay Later?

Amazon Pay later app
Amazon Pay later app

Amazon Pay Later is a BNPL service offered by the e-commerce giant Amazon. It allows customers to shop now and pay later in easy monthly installments. There is no interest or additional fees charged on purchases made with Amazon Pay Later.

To use Amazon Pay Later, you need to be an Amazon customer. You also need to be 18 years of age or older. Once you’re registered, you can shop as usual on Amazon and choose the Amazon Pay Later option at checkout.

What is Paytm Postpaid?

Paytm Launch New Version Paytm Postpaid 2020

Paytm Postpaid is a BNPL service offered by the digital payments platform Paytm. It allows customers to shop now and pay later in easy monthly installments. However, paytm charges a per their plan.

To use Paytm Postpaid, you need to be a Paytm customer. You also need to be 18 years of age or older. Once you’re registered, you can shop as usual on Paytm and choose the Paytm Postpaid option at checkout.

So, Which One Should You Choose?

Both Amazon Pay Later and Paytm Postpaid are great options for people who want to spread out their payments.

However, there are a few key differences between the two services that you should be aware of.

I have compared both the services on the basis of different factors which are as follows:

1. Ease of Use

2. Eligibility Criteria

3. Interest Rates & Fees

4. Repayment Date

5. Security and Privacy

6. Customer Service.

Amazon Pay Later Vs. Paytm Postpaid

Here are key differences between Amazon Pay Later and Paytm Postpaid:

1) Ease of Use:

Both Amazon Pay Later and Paytm Postpaid are easy to use. Both services allow you to shop online and pay later in easy monthly installments.

However, Amazon Pay Later is only available to Amazon customers. So if you’re not an Amazon customer, you won’t be able to use the service.

Paytm Postpaid, on the other hand, is available to all Paytm customers. So if you’re already a Paytm user, you’ll be able to use the service.

2) Eligibility Criteria:

To use Amazon Pay Later, you need to be an Amazon customer. You also need to be 18 years of age or older.

To use Paytm Postpaid, you need to be a Paytm customer. You also need to be 18 years of age or older.

3) Interest Rates & Fees:

Amazon Pay Later doesn’t charge any interest or additional fees on purchases made with the service.

Paytm Postpaid charges a per their plan. There are three Variants of Paytm Postpaid-

a) Delite users

b) Lite users

c) Mini users

Convenience fee of 0 to 3% is levied on monthly spends as per risk segmentation.

4) Repayment Date:

The repayment date for Amazon Pay Later is the 5th of each month.

The repayment date for Paytm Postpaid is the 7th of each month or any other specfifed date.

5) Security and Privacy:

Both Amazon Pay Later and Paytm Postpaid use 256-bit SSL encryption to protect your personal and financial information.

6) Customer Service:

Both Amazon Pay Later and Paytm Postpaid have excellent customer service. If you have any questions or problems, you can contact customer service and they will be happy to help.

For Amazon Pay Later, if the customer misses a payment by the deadline, monthly late fees will be applicable on the due amount. For a monthly due of less than Rs 200, there will be no penalty. For an outstanding of Rs 200 to Rs 1,000, Rs 100 will be charged as late fee.

For a due of Rs 1,000 to Rs 5,000, Rs 200 late charge will be levied. Amazon Pay Later will charge a late fee of Rs 350 for monthly dues between Rs 5,000 and Rs 20,000. For any outstanding amount above Rs 20,000, Rs 500 late fee will be charged. A GST of 18 percent will be added to all late fees.

Paytm Postpaid charges late fees based on the outstanding balance per month. If the outstanding balance is up to Rs 100, no late fee is charged. For a balance of Rs 101 to Rs 250, the late fee is Rs 10. If the customer has an outstanding of Rs 251 to Rs 500, Amazon will charge a late fee of Rs 25 per month.

For a balance of Rs 501 to Rs 1,000, the fee is only Rs 50. Late charges go up to Rs 100 for an outstanding of Rs 1,001 to Rs 2,000. Beyond Rs 2,000 to Rs 5,000, the charges are Rs 250 per month. Any outstanding above Rs 5000, will attract a late fee of Rs 500 per month. The late fee charges are inclusive of applicable taxes.

8. Late fees

Both Amazon Pay Later and Paytm Postpaid charge late fees for payments that are made after the deadline.

If a customer misses a payment by the deadline, monthly late charges will be charged on the entire owed amount. There will be no penalty if the monthly due is less than Rs 200. For an outstanding of Rs 1,000 to Rs 10,000, a charge of Rs 100 will be levied as a late fee.

For a due of Rs 1,000 to Rs 5,000, Rs 200 late charge will be levied. Amazon Pay Later will charge a late fee of Rs 350 for monthly dues between Rs 5,000 and Rs 20,000. For any outstanding amount above Rs 20,000, Rs 500 late fee will be charged. A GST of 18 percent will be added to all late fees.

The Postpaid plan of PayTM offers a monthly late fee based on the outstanding balance. If the outstanding amount is less than Rs 100, no charge is levied. The late charge for balances between Rs 101 and Rs 250 is ten rupees. Amazon will assess a late fee of Rs 25 per month if the customer’s account has an outstanding balance of Rs 251 to Rs 500.

A late payment fee of Rs 50 applies for a balance between Rs 501 and Rs 1,000. For an outstanding of Rs 1,001 to Rs 2,000, the penalty is only Rs 100. The fees are $250 per month after reaching $2,000. A charge ofRs 500 per month is levied on any amount owing beyond Rs 5,000.

The late fee charges are inclusive of applicable taxes.

9. Credit limit

Both Amazon Pay Later and Paytm Postpaid have a credit limit that is based on the customer’s risk segmentation. The credit limit can be increased or decreased, depending on the customer’s spending behavior.

The credit limit for Amazon Pay Later is Rs 60,000. The credit limit for Paytm Postpaid is also Rs 60,000.

Which one should you choose?

Both Amazon Pay Later and Paytm Postpaid have their own benefits that may make them the perfect choice for you.

Amazon Pay Later is ideal for customers who want to purchase items on Amazon and spread out the payments over time. There are no interest charges or annual fees, and the customer can increase their credit limit if needed.

Paytm Postpaid is best suited for customers who want to shop at any merchant that accepts Paytm as a payment method. There are no interest or annual fees, and the customer can increase their credit limit if needed.

Both Amazon Pay Later and Paytm Postpaid offer great features with no hidden charges. Choose the one that best suits your needs!

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