Buy Now Pay Later, also known as BNPL, is changing the digital payments at a rapid place. More and more consumers and businesses are accepting Buy Now Pay Later service for their daily payment activities.
What is Buy Now Pay Later?
Buy Now Pay Later is a service wherein a customer can buy anything they want by taking a small amount of loan from the vendor. This loan amount can be paid off in zero interest in a certain number of predefined installments. Buy Now Pay Later service is quite easy to use, and the approvals for the same are completed much quicker as compared to traditional loans or credit cards.
Buy Now Pay Later helps the customers at the end of the month or during a sale season wherein they don’t have enough cash to buy a product. Using the Buy Now Pay Later app at the right time can help customers save money if proper planning is done. Buy Now Pay Later helps the customers at the end of the month or during a sale season wherein they don’t have enough cash to buy a product. Another important aspect is that for availing of this service, the customer need not have a good credit score, and the approvals come in quickly and easily.
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How is Buy Now Pay Later helping retailers/businesses?
● Better Business with good profit margins – Many businesses are seeing that their customer acquisition cost is getting lower with them introducing Buy Now Pay Later as a payment option. Businesses have also stated that there has been an increase of 20% to 30% in order value per customer who use Buy Now Pay Later service. Due to this, many small and large-scale businesses are now offering more offers for customers who use this as a payment option. This, in turn, is also helping customers as they can afford many of the things quite easily and cheaply.
● Faster payment processing – Unlike traditional cards or cash, the speed at which transactions happen for Buy Now Pay Later is quite fast, and this has led to faster billing for businesses.
● Help through covid – During the lockdown period, the shopping frequency of people grew extensively, and everyone started relying heavily on online payment methods. This paved the way Buy now, pay later service. Buy now, pay later sites are unique in terms of their EMI schedules. Some of them include interest-free payments in 30 days or 3/ 4 months and payment by installments up to 36 monthly installments, including interest charges.
● Secure transactions – While using Buy Now Pay Later, the transactions are encrypted, and there is no risk of data being hacked by a third party. This also helps the businesses to secure their side of the savings without any data privacy issues.
● Easy Access – One of the main features of Buy Now Pay Later service is that it is quite easy to use, and a transaction can be completed with just one click. This has led to more people using Buy Now Pay Later, even for smaller day-to-day transactions. Most apps work on smartphones and don’t have any high specification requirements apart from having an internet connection to complete the payment.
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● Post covid Buy Now Pay Later payment service became an alternative to credit cards – the E-commerce industry rose to new levels during the covid times, and BNPL services grew with them. Two of the reasons for this are:
1. Many people lost their jobs during the covid time and needed flexibility with their expenses which Buy Now Pay Later services offered at good lengths.
2. Many people saw good clearance sales and other offers during the covid times and used Buy Now Pay Later service to make good profits on many of the products.
Now, more vendors are accepting Buy Now Pay Later services as there is a huge demand from customers, and more offers are being given to customers using this service. In conclusion, Buy Now Pay Later services are a sure hit among Gen Z and all ages as they give customers more purchasing power. Getting approval for this service without a credit check is one of the main features attracting new-age people.
Digital finance is the key to tomorrow’s world, and Buy Now Pay Later services are constantly innovating in this space to provide the best services for the client.
