Zip Pay and Zest Money

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Zip Pay and Zest Money

Meaning :

Zip Pay and Zest Money are defined as Buy Now, Pay Later (BNPL) services that allow consumers to make immediate purchases while deferring payment through flexible instalment plans. These services provide a mechanism for consumers to acquire products without immediate cash outlay.

Example :

For example, utilizing Zest Money to purchase a laptop and subsequently repaying the amount in 3–6 instalments illustrates the operational model of BNPL services.

How to Understand Zero Balance Account :

1.Conceptualize BNPL as a form of short-term credit; it enables consumers to obtain

products immediately and defer payment, akin to a mini loan.

2.This service allows individuals to make purchases even when cash flow is constrained.

Importance of Zero Balance Account :

1. BNPL services empower consumers to acquire products without the necessity of

immediate payment, enhancing purchasing power.

2. They provide flexible repayment options, facilitating better financial management.

3. This model is especially advantageous for online shopping and meeting urgent financial

needs.

4. BNPL significantly improves financial accessibility for younger consumers who may lack traditional credit options.

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