In the BFSI (Banking, Financial Services, and Insurance) sector, Buy Now, Pay Later (BNPL) services have emerged as a popular financing option, offering customers a flexible and convenient way to make purchases. BNPL allows consumers to acquire goods and services immediately while deferring payment over a specified period.
This innovative payment solution has been widely adopted in conventional financial systems and is now being adapted to align with Islamic finance principles. Islamic BNPL models are designed to comply with Shariah law, ensuring that transactions are free from interest (riba) and adhere to ethical and religious guidelines. Both conventional and Islamic BNPL services enhance customer experience, drive sales, and provide new opportunities for financial institutions.