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How Buy Now Pay Later (BNPL) Companies Like Simpl & Lazypay Make Money. Ever wondered how you can buy something for ₹500 on Zomato or Myntra using Simpl without paying any interest for 15 days or 30 days? And if you’re not paying interest, how does Simpl actually make money? Well, the answer lies in a brilliant business model that capitalizes on India’s low credit card penetration. Only 4% of Indians own a credit card, one of the lowest rates in the world. This means millions of college students and young professionals with limited income have no access to traditional credit. That’s where BNPL companies like Lazypay & Simpl come in. Imagine a young professional who has only ₹4,000 in his bank account but wants to buy his favorite shoes for ₹5,000 on Myntra. Instead of waiting for his next salary, he uses BNPL platforms, which pay the amount on his behalf. He can then repay the amount later without immediate financial strain. So, who’s paying Simpl for this convenience? 🔹 Merchants like Zomato & Myntra! Since BNPL enables bigger purchases that wouldn’t happen otherwise, merchants happily pay a commission of 2% to 8% per transaction to these companies. 🔹 Late fees & penalties If a user doesn’t repay on time, late fees & penalty charges add another revenue stream. This entire model thrives on one fundamental principle: 💡 If you can increase the spending power of a customer, businesses will gladly pay you for it. Actionable Takeaways for You: 1️⃣ Find gaps in the market where demand exists but access is limited—like BNPL did with credit. 2️⃣ Offer value to businesses, not just customers—your product should drive sales for them. 3️⃣ Leverage behavioral economics—people spend more when payments feel effortless. Understanding these principles can help you build or invest in smarter business models that drive sustainable revenue growth. 🚀 If you want to unlock more insights on business, startups, and growth strategies, subscribe to my newsletter through the link in the comments!