How are pay-later cards different from credit cards?
Mar 30, 08:03

You might have seen card products by Slice and Uni that allow you to make purchases and pay bills in parts. While these too are Visa cards, they are different from a credit card. A credit card can be seen as a borrowing instrument that allows you to spend a certain amount each month through a credit line issued directly by your bank. Startups such as Slice or Uni cannot issue credit cards themselves as per RBI norms. They partner with banks to provide cards with a credit line in the form of a personal or a consumer loan that can be accessed using the card. These cards differentiate themselves by charging no interest or annual and joining fees, and by offering cashback and discounts.