Save Now Pay Later (SNPL) companies like Multipl, Tortoise, and Hubble offer consumers a goal-based investing and spending platform with some added caveats. But do the pros outweigh the cons? If so, then for whom? Let us see.


How Does SNPL Work?


What the SNPL (Save Now Pay Later) platforms essentially do is that they tie up with brands like MakeMyTrip, Croma, etc. People, who want to buy an article, say, a travel package or electronics, deposit some money every month with the merchant. Upon completion of that goal, the money is returned with added incentives like cashback.


If the money is invested in mutual funds (Multipl), the user will get the market returns in addition to brand-specific incentives.


The brand may give an extra 10 per cent cashback or discount, while the customer may continue to receive returns, depending on the fund type. Since Multipl is the only SNPL company in India with a Sebi RIA licence, it is the only one to offer a market saver SNPL option.


There is another SNPL model, too, wherein consumers save money directly with the merchant via a dedicated Escrow account and receive the cash plus brand cashback, discounts, etc., at the end of the goal.


It is similar to what some jewellery shops do; taking money from people monthly and giving some extra benefit at the end of the goal tenure, but only if the money is used at their shop.


Multipl is a Sebi RIA platform that offers Robo advisory to its users. Other SNPL platforms allow people to save directly with the participating brands using an Escrow account.


“When people are locking up for a particular goal, it is just an indication that they will purchase that brand’s product or services. After the completion of the goal, it is up to the users if they want to go with the brand or…

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