All You Need To Know About Buy Now Pay Later
- 1.1 How Does BNPL(Buy Now Pay Later) Work?
- 1.2 Who Can Use BNPL(Buy Now Pay Later)?
- 1.3 Will You Have to Pay Any Interest on BNPL(Buy Now Pay Later)?
- 1.4 Can You Go Broke or in Debt?
- 1.5 Should You Buy Using BNPL(Buy Now Pay Later)?
- 1.6 Is Business Making Any Profit With BNPL(Buy Now Pay Later)?
- 1.6.1 Author Bio –
You decided to go for shopping to buy new clothes or pair of shoes. You found the best clothes you were looking for but the price is a bit expensive but you still decided to buy them anyway. At the time of payment, you choose not to pay the full cash because you don’t have enough money to pay for your product at the moment so you choose to pay for it later. That’s when buy now pay later comes in help.
Buy now pay later is a scheme where you can buy your product at the time of purchase but you will pay for it later using credit. You don’t have to pay using your cash you can just choose the buy now pay later scheme and make your payment later and enjoy your product now. Sounds interesting right? You can buy anything now without worrying about paying at the time of purchase.
Seems like a good deal for many of us who prefer not to pay the full amount or can’t afford a product because it’s too expensive. Buy now pay later is becoming very popular when it comes to shopping. Retail shops and online shops both are providing their customer with this facility to buy now and pay for it later.
All You Need To Know About Buy Now Pay Later
How Does BNPL(Buy Now Pay Later) Work?
Let’s say you like a product or have wanted to buy it for quite a long time but you don’t have enough money to afford that product for now. But you decided to buy the product anyway but you won’t be paying for the product at the time of purchase. You can pay for the product over a certain period can be between 30 days to 12 months.
This gives you the flexibility at the time of buying you don’t have to look for the amount of the product as you don’t have to pay upfront while purchasing. The amount will be deducted on monthly basis without any interest. So, you are buying the same product with the same amount even after paying for it late. No interest will be charged if you are doing the payment on time.
Who Can Use BNPL(Buy Now Pay Later)?
Anyone who has a credit card can enjoy the BNPL(Buy Now Pay Later) scheme. If you have a credit card you can do happy shopping with BNPL. If your bank approves you for the credit card you can pay using your credit card at the time of buying. BNPL(Buy Now Pay Later) works with your credit card. You can apply for your credit card approval from your bank. You have to sign some papers for your approval. Once you get the approval you can use your credit card to shop using buy now pay later.
Will You Have to Pay Any Interest on BNPL(Buy Now Pay Later)?
In most cases, you don’t have to pay any interest when buying using BNPL. You have the flexibility to pay your shopping bill. You don’t have to pay any extra interest while buying using BNPL. BNPL(Buy Now Pay Later) is most popular among millennials as they like to do the shopping and try new things a lot but they would like to pay for the products later. You won’t pay interest until you are paying for the products on time.
Can You Go Broke or in Debt?
Buy now pay later is a good option for many of us to do shopping as it gives you the flexibility with your buying. But some people may buy so many products with BNPL thinking that they won’t have to pay for them at the time of purchase. People might think nothing will go wrong buying using BNPL(Buy Now Pay Later) as you can pay for your products later. But buying too many products using BNPL can make you go into debt.
As you would have to pay for all the product someday and if you don’t have enough money to pay for all the product till the given time you will also have to pay interest and that amount will keep growing bigger. You have to understand what you are buying using BNPL. You cannot just go and buy everything using BNPL or it might make you go into debt. Understanding before buying using BNPL.
Should You Buy Using BNPL(Buy Now Pay Later)?
BNPL is growing when it comes to shopping. Many retail and online shops are giving their customers to buy using BNPL. No doubt BNPL option is a great way of shopping as it gives you the flexibility for the buyer to buy anything now and pay for it later. But you have to be careful and read all the terms and conditions before you go shopping with BNPL. Make sure you are eligible for BNPL(Buy Now Pay Later).
BNPL is also helping businesses to boom as they are allowing their customer to buy anything they want and pay for it later. So, both seller and buyer are enjoying this scheme. Also, there is a significant growth in buying due to BNPL. In simple, you should enjoy and should buy using BNPL but you should also be aware of the consequences that can happen.
If you don’t want to fall into a debt trap then it’s better not to buy too many products using BNPL as you can go broke if you don’t pay for the product on time.
Is Business Making Any Profit With BNPL(Buy Now Pay Later)?
Many people might be thinking that how do companies making money from BNPL if the buyer is not paying any money at the time of purchase. They might be losing their business? This is not the case. Just think of it if you are giving your customer the chance to buy any product of their choice and they can pay for it later why wouldn’t anyone use BNPL?
Companies are making a profit using BNPL as more and more people will like to buy using BNPL which will bring more sales for the company. Customers can make an impulsive decision while shopping using BNPL without worrying about the cost of a product. As more customers will try to benefit from BNPL more sales there will be for the business.
Buy now pay later can be a good deal for many of us. If you want to buy any product and want to pay for it later BNPL can be the best thing. Many companies are offering their customers BNPL to win their trust and allow them to buy any products that they can’t afford. BNPL will encourage people to buy because they don’t have to worry about paying the full amount upfront.
But not everyone will provide you with BNPL(Buy Now Pay Later) you need to search and know if you are eligible for BNPL. If you don’t pay the full amount you may have to pay extra fees and charge and can go into debt. If you don’t want to fall into debt, try to pay your full amount in the given period.
Before you go buying with buy now pay later know everything about it how it can be beneficial for you and what is the danger included? Know the terms and conditions of BNPL(Buy Now Pay Later). Different websites have different payment policies. Read the policies of every site before you are about to pay using BNPL.
Author Bio –
Allison Janney is a Sales & Marketing Manager at ChargeAfter. She would like to share content on the Finance Industry like Point of Sales financing, Buy now Pay later, consumer financing & Ecommerce financing for the valuable readers.