OYO introduces Stay Now, Pay Later feature for travellers: Should you opt for it?

OYO introduces Stay Now, Pay Later feature

On June 13, 2023,  hospitality technology company OYO announced a Stay Now, Pay Later (SNPL) feature to Indian travellers. This feature comes after the popularity of buy now, pay later (BNPL) schemes for purchasing consumer electronic goods from e-commerce websites and retail shops.

Also read: Now, you can opt for wedding EMIs with marry now, pay later options

What is Stay Now, Pay Later?

SNPL provides customers with a credit limit of up to Rs 5,000. You need to settle the amount after 15 days of stay. OYO has partnered with Simpl, a credit-based payments service, for this feature.

You can access the feature on the home screen of the OYO app or while selecting payment mode, opt for Simpl.  The feature is currently available for Android users and will soon be rolled out for iOS users.

“SNPL offers a convenient payment solution that caters to the needs of cashflow-conscious travellers,” says Abhinav Sinha, Global COO and Chief Technology & Product Officer, OYO.

What works?

“The SNPL one-tap payment makes hotel bookings very convenient,” says Parijat Garg, a digital lending consultant. For the first time, signing up on SNPL service and Simpl may take a few minutes. However, SNPL can simplify the booking next time onwards, he says.

The hotel booking through Simpl offers a discount of up to 65 percent and Rs 50 cashback to users.

Also read: Fallen into a credit card debt trap? Here are strategies to pay off debt

What doesn’t work?

“The credit limit of up to Rs 5,000 on Simpl is low for frequent and affluent travellers,” says Garg. If the customer is an existing Simpl customer, the limit should be enhanced.

If you delay your payment beyond 15 days on Simpl app, it levies an interest cost, depending on your bill amount, and a late penalty of up to Rs 250, plus GST.

Moneycontrol’s take

You should be careful while using such credit facilities. It’s a debt trap with a single bullet payment when bill is generated after 15 days. You have to be ready with the money before the repayment due date, once the bill is generated.

If you don’t repay, it will impact your credit history, you will have to pay late/default charges and incur interest cost. It will also affect the prospects of getting any credit in the future.