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Pay later or Postpaid Services has a great impact on your credit score

Postpaid Services

Postpaid Services Concept

For many companies, the last word aim is to become the well-liked wallet and lender to a private.

At the time of credit report browsing, don’t be astonished if you see loans or enquiries from lenders whom you’ve got never approached. There’s a possibility that these lenders are partners of e-commerce platforms from which you had availed of pay later or postpaid services.

Take the instance of Amazon India. The corporate has engaged with Capital Float and IDFC First Bank for its postpaid services, consistent with the company’s website. If you check in for it, you’ll see an approved credit line in your credit report from one among the lenders.

In the same way, Ola Money made a tie-up with Aditya Birla Finance Ltd (ABFL). After signed up for Ola Money Postpaid services, the credit report would have a limit sanctioned by ABFL.

Postpaid Services


“Such credit partnerships are termed as embedded finance. To outline it method for patrons, a corporation ties up with a lender, which evaluates the customer and offers a credit line, it has been said by Parijat Garg, who formerly worked with an agency during a senior role.

According to industry officials, it’s a sort of consumer loan or equivalent of a master card.

Customer will get finance from lenders for the products they buy after attend a durables store. According to Navaneetha Krishnan it’s an equivalent within the online world.


When signing up for postpaid services schemes, do keep a couple of things in mind. All the e-commerce company would exhibit the name of its associate during the onboarding process. Do make a note of it because it would seem as a lender in your credit report.

Delay or payment missing will be reflected on credit card report, and it’ll force on score. It has been said by Ranjit Punja who is the co-founder of CreditMantri which is a marketplace for financial products.

In most cases, the credit is free for a selected period. Some credit card may charge a flat fee or one-time fee on signing up. Do check the fees beforehand.

As it is sort of a consumer loan, do treat it like one. Don’t check in unless you would like it. It is not good to benefit too many services during a short period as companies perform a credit check on the borrower. Don’t miss payments and don’t overstretch.

Click here to check out Credit Calculators.


After getting a master card, you should avoid these services. Use the credit-free period over 40 days that cards offer rather than using pay later,” said Garg.

According to officials of officials of industrial sector, pay later or postpaid services are till at the budding stage. For several companies, the last word aim is to become the well-liked wallet and lender to a private.

At present, the bounds are low: ₹5,000-10,000 in most cases. Once the individual keeps paying on time, lenders would increase their limit, rewarding them permanently behaviour. Ultimately, it will grow to be a substitute for a master card.

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