ePayLater

Overview Of ePayLater For Merchants

ePayLater is a buy now, pay later (BNPL) credit solution focused on Indian small and mid sized retailers and wholesalers. Operated by Arthashastra Fintech Private Limited and based in Mumbai, ePayLater provides an interest free working capital line that retailers can use to purchase inventory from partner merchants and local suppliers, then repay after a short credit period.

What Is ePayLater?

ePayLater is described as a digital payment solution that enables a BNPL experience for frequent purchasers with an interest free credit term. It is offered by Arthashastra Fintech Private Limited, founded in December 2015 and headquartered in Mumbai. The company is recognized as a startup by the Department of Industrial Policy and Promotion of India’s Ministry of Commerce.

Key characteristics:

• BNPL style revolving credit line for business buyers

• Interest free credit period of up to 14 days when dues are paid on time

• Credit limits ranging roughly from INR 25,000 up to INR 25 lakh, based on eligibility

• No processing fee or prepayment penalty for using the credit line

How ePayLater Works For Business Buyers

Business users sign up through the ePayLater Business app, complete a digital KYC process and receive a revolving credit limit. The standard flow is:

• Sign up

  • Download the ePayLater Business app and register.

  • Provide basic personal and business details and upload required documents.

• Transact with merchants and suppliers

  • Use the ePayLater option on partner merchant portals.

  • Pay local suppliers by selecting them in the app, entering invoice details and using the credit line.

• Interest free credit period

  • Purchases are consolidated and given an interest free period (stated as up to 14 days).

  • If the full amount is repaid within this window, there is no interest cost.

• Repayment

  • Dues are normally debited automatically from the linked bank account on the due date.

  • Customers can also repay via NEFT or UPI from their savings account if needed.

If payments are delayed, a penal interest of 3 percent per month is charged on the outstanding amount from the transaction date, plus a defined late or bounce fee. Overdue behaviour can be reported to credit bureaus, which means repayment discipline influences the buyer’s credit profile.

ePayLater For Merchants And Marketplaces

Although the credit line is extended to buyers, ePayLater also positions itself as a growth tool for merchants and platforms that sell to these buyers.

From the merchant perspective, ePayLater:

• Provides a Pan India credit ready network so sellers can tap into an existing base of approved buyers or digitally onboard their own network.
• Aims to increase order values and transaction frequency, with internal metrics presented such as higher average order value and more monthly transactions when buyers use seamless credit at checkout.
• Offers seller and buyer protection, where payment is described as “assured by ePayLater” and buyers have no payment obligation until shipment is received, which is particularly relevant in B2B inventory flows.

By taking over the credit assessment and collections, ePayLater indicates that sellers can reduce their own working capital lock in and operational cost of extending informal credit.

Channels And Use Cases

ePayLater is designed for omnichannel usage in B2B retail. Official materials specify:

• Omnichannel support

  • Can be used on physical channels, web and mobile.

  • Buyers can choose ePayLater when shopping online, ask a sales executive to use ePayLater when ordering through them, or use a digital card at the store.

• Industry focus

  • Content repeatedly highlights small retailers, shopkeepers, kirana stores and similar SMBs as the core audience.

  • The main use case is purchasing stock and inventory from wholesalers, cash and carry formats and other suppliers across India.

Typical scenarios include:

• Kirana stores using ePayLater to restock from large wholesale chains and regional distributors.

• SMB retailers sourcing inventory from multiple suppliers while aligning repayments with working capital cycles rather than paying immediately.

Credit Limits, Pricing And Risk

Credit Limits

• Limits on the buyer account are described as ranging between INR 25,000 and INR 25 lakh, with actual limits determined by eligibility and periodic review.

Pricing Structure

Official materials describe a simple model:

• No processing fees for applying and no prepayment penalties.

• Interest free period if dues are cleared before the due date (typically up to 14 days).

• Penal interest of 3 percent per month on overdue balances, charged from the transaction date.

• Fixed late or bounce charges (for example, a stated fee of INR 500 if a NACH debit fails due to insufficient funds).

• Goods and Services Tax (GST) is applied on late payment charges.

From a merchant standpoint, this structure means that:

• Buyers who pay on time effectively receive free short term credit.

• Credit risk and late fee handling sit with ePayLater and its lending partners, not with the merchant.

Merchant Tools And Dashboard

For sellers, ePayLater provides a dedicated seller dashboard environment:

• Branded as “One login, multiple tools”, described as an agile solution for business needs.

• Allows sellers to manage inventory, orders and key performance indicators from a single space.

The seller offering also emphasizes:

• Easy onboarding of the seller’s existing buyer network into ePayLater’s credit framework.

• Ability for buyers to purchase across channels and categories without location constraints.

Conclusion

ePayLater is a BNPL credit platform tailored to the realities of Indian SMB retail. It provides a revolving working capital line that retailers and kirana stores can use to purchase inventory from partner merchants and suppliers, then repay after a short, interest free period. For merchants and marketplaces, ePayLater functions as a credit enabled payment method that can increase order values and transaction frequency while shifting credit risk and collections to a specialized provider.

The service is mobile first and omnichannel, supports usage across physical and digital sales, and offers seller tools such as a centralized dashboard for managing orders and basic performance metrics. Its documentation also underlines strong emphasis on KYC, data protection and regulatory retention requirements, supported by recognized security practices.

For merchants that target Indian SMB retailers and wish to enable structured, short term credit at checkout without building their own lending and risk stack, ePayLater represents a focused BNPL option with clearly defined limits, pricing and roles as presented in its official materials.