Arya.ag introduces ‘Buy Now Pay Later’ service for commodity purchase

Commodity buyer can now avail BNPL service with 0% interest rate for 14 days with a credit limit upto Rs 25 lakhs
Arya.ag introduces ‘Buy Now Pay Later’ service for commodity purchase

Photo - Arya.ag

Arya.ag, an integrated Agri service platform, has launched BNPL (Buy Now Pay Later). This service is relevant to every buyer who buys roughly 150-200 tonnes of agri produce (grains/oilseeds/pulses traded annually) and will help mitigate the age-old finance challenges in the commodity buying space.

Buyers on the Arya.ag platform can currently receive a credit of up to Rs 25 lakhs with a 0% interest rate for 14 days. This amount will shortly go up to 2 crore. To avail the BNPL, buyers need to upload their basic KYC and financial details. Once onboard, they can avail credit in a matter of minutes. As a platform, Arya.ag is bringing together multiple players offering BNPL services and plans to extend these financial solutions to warehouse rent, loan repayment, and more.

Speaking on the launch of BNPL, Prasanna Rao, chief executive officer, Arya.ag said, “There is always a need for simple and innovative financial solutions in every sector. BNPL, which is mostly available in the retail space, will now be available for people in the B2B trade of agri commodities. Through the BNPL service, Arya.ag will bring in more ease and trust in commerce and the market linkage transactions. It will mitigate payment risk for the supplier and add assurances for the buyer which will benefit farmers, FPOs and small agribusinesses selling on the platform.”

In the US $ 370 billion markets of non-perishable agriculture, this is a one-of-a-kind service. Trade financing already securely happens in the agribusiness; however, this is a first for unsecured finance.

With BNPL, the seller gets paid upfront, the lender benefits from picking up cash discounts for early payment, and the buyer gets to pay later without paying interest, making it a win for all the transaction stakeholders.

Demand for financial solutions forms a crux of the commodity market, and BNPL is expected to be a significant driver of volumes in the next 6-12 months. This service is available to all sellers and buyers registered on the Arya.ag platform all over the country.

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