In today’s time, most of the discounts come fast and don’t last long; hence it is quite important to buy products at the right time in order to save some money during this offer zone. However, many people don’t have enough cash with them to buy stuff during such a period, or it could be the end of the month, and they are waiting for their salary to be credited. This is where pay later services come handy.
What is Buy Now Pay Later?
Buy Now Pay Later services is taking over the digital finance world quite quickly as more and more Gen Z and Baby Boomers are switching to this service. As the name suggests, customers can pay for any of the products they want using this feature and then repay the loan over a pre-defined period. One of the main reasons why Buy Now Pay Later service is such a hit is because of the low or zero interest rate on the borrowed amount.
An example of this could be – Suppose you want to buy a laptop of $1000 and you put in a deposit of $200, now rest of the $800 is paid by the BNPL vendor, and the customer has to pay $200 every month as a split payment to the BNPL vendor for 4 months. If the customer fails to pay the 3rd installment, an interest fee would be charged on the remaining $400, and the customer will have to pay the new amount.
Must Read: Apply for the Buy Now Pay Later Facility With Guaranteed Approval
The financial institutions or vendors provide Buy Now Pay Later guaranteed approvals for this service irrespective of the person’s credit score.
Why is Buy Now Pay Later service the most desired?
Buy Now Pay Later Apps has largely dominated the financial department as it has good flexible and affordable repayment options. The financial institutions that provide this service decide the repayment tenure during which the customer has to pay the amount in several installments.
Must Read: Apply for Buy Now Pay Later Without Worries of Credit Checks, and Get Your Most Desired Phone
How is BNPL helping in daily activities and changing the lending process –
● Pay by installments – Many times, we are short of cash, and using a credit card is no good as there is a huge interest rate that needs to be paid off with each installment. However, with Buy Now Pay Later service, customers can pay in installments without any interest rate. The number of installments is predecided by the customer and the vendor before starting off the service. The number of installments for the same amount can vary from vendor to vendor. If a customer misses the installment date, they are charged an interest fee pre-decided between the vendor and the customer at the time of signing up.
● Easy Approval – For getting a traditional loan or credit card, the customer needs a good credit score, and a long set of approvals are also needed. However, for Buy Now Pay Later service, all a customer needs are to have a bank account and should be 18 years or above. Buy Now Pay Later vendors do not ask for credit scores, and the KYC process is digital and can be completed in a few minutes. The approval time depends upon the documents the customer is providing, and it doesn’t take more than 1 day to finish all the procedures.
Must Read: Now You Can Borrow a Personal Loan on WhatsApp with Cashe!
● No issues with credit bureaus – All of the credit card companies share your data to credit bureaus which affect your credit score. However, Buy Now Pay Later service does not do that. So even if you take a loan, this won’t affect your credit score. Some of the BNPL vendors do share the data. However, prior intimation is given to the customer before sharing their data, and the customer can also opt-out of this service.
● Low Customer Acquisition cost – Businesses have stated that since Buy Now Pay Later service came into the picture, customers have got better purchasing power. This has led to lower customer acquisition costs for businesses, thereby making good margins for them. The repeat order value for customers using BNPL is also quite high.
Now, more vendors are accepting BNPL 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. If you have not yet subscribed to Buy Now Pay Later services, then this is a good time to get on the ride. With proper planning, one can save a lot on online and offline shopping.
Must Read: A Retailer’s Guide to Buy Now Pay Later Apps
