Whether a credit card company/bank promoting "save now, buy later"

(SNPL) is justifiable is a complex question with arguments both for and

against. Here's a breakdown of the potential benefits and drawbacks:

Arguments for:

 Customer segmentation: Banks can offer SNPL as an alternative to

traditional credit cards for customers who are less inclined to debt or have
lower credit scores. This expands their customer base and revenue
potential.
 Reduced risk: SNPL typically involves less financial risk for both the bank
and the customer, as purchases are funded by pre-saved funds, minimizing
the chance of missed payments and high-interest debt.
 Brand image: Promoting responsible financial habits through SNPL can
enhance the bank's image and build trust with customers, potentially
leading to increased loyalty and engagement.
 Data and insights: By offering SNPL, banks can gather valuable data on
customer spending habits and financial goals, which can be used to
develop more personalized financial products and services.

Arguments against:

 Cannibalization: SNPL might compete with the bank's own credit card
business, potentially reducing revenue from interest charges and fees.
 Limited profitability: SNPL generally generates lower fees and commissions
compared to credit cards, potentially impacting the bank's bottom line.
 Consumer behavior: Overly promoting SNPL could still encourage impulse
purchases and unhealthy spending habits, even though it involves saving
beforehand.
 Regulatory concerns: Depending on the specific features and
implementation of SNPL, there might be concerns about transparency,
unfair terms, and predatory practices towards vulnerable customers.

Overall, the justification for banks promoting SNPL depends on their

specific goals, risk tolerance, and target audience. It's crucial to ensure
transparent and responsible marketing, prioritize financial education and
literacy, and avoid practices that could lead to customer debt or harm.
Balancing these considerations can allow banks to tap into the potential
benefits of SNPL while minimizing the risks.

Ultimately, the choice to promote SNPL should be based on a

comprehensive analysis of the potential benefits and drawbacks, keeping

the best interests of both the bank and its customers in mind.

While the "Save Now, Pay Later" (SNPL) concept is gaining traction in
India, traditional banks haven't yet made significant inroads into offering
direct SNPL solutions. This is partly due to regulatory barriers and existing
 competition from dedicated SNPL fintech startups. However, some banks
are indirectly involved in the space through partnerships and collaborations
with these startups.

Here's a snapshot of how Indian banks are currently involved with SNPL:

Indirect engagement through partnerships:

 ICICI Bank: Partnered with fintech platform "ZestMoney" to offer a co-

branded "ZestMoney Card," which allows users to set savings goals and
make purchases through linked virtual cards with flexible EMI options.
 Axis Bank: Partnered with "Slice" to offer an "Axis Slice Card," which
combines a physical credit card with the ability to set savings goals, pay in
installments, and track expenses.
 IDBI Bank: Collaborated with "Paytm Postpaid" to provide instant credit
options for online and offline purchases with flexible repayment plans.

Direct SNPL offerings are still limited:

 SBI YONO Savings Plus: SBI offers a savings account with features like
goal setting, recurring deposits, and automatic transfers, which can be
used to accumulate funds for future purchases. While not a true SNPL
product, it shares some characteristics.
 Equitas Small Finance Bank: Launched an "Equitas Pay" scheme allowing
customers to purchase smartphones and electronics through monthly
installments deducted from their salary accounts. This model resembles
SNPL, but is limited to specific product categories.

It's important to note that the SNPL landscape in India is evolving rapidly,
and future developments could see traditional banks introduce more
comprehensive SNPL offerings or deepen their partnerships with fintech
players.

Remember, when considering any SNPL option, it's crucial to compare

features, fees, and interest rates across different platforms and ensure
responsible financial planning to avoid accumulating unwanted debt.