Buy Now, Pay Later Has Become One of The Most In-Demand Financing Options |
Posted: November 24, 2021 |
Like most people, you never seem to have the money to do what you want. You struggle to save money. Even if you make a six-figure income, you live paycheck to paycheck. In fact, it shouldn’t be so surprising. Things are getting more expensive, so we spend a lot more on some of our go-to items due to shipping wars, labor issues, and climate change. Both consumers and suppliers are feeling the effects of inflation. Low supply and high demand have driven up prices on a wide array of goods. What do you do when you really need something that neither your paycheck nor savings account can’t cover? Don’t despair because there’s something you can do. With the rising costs, the expenses are passed on to consumers indirectly. The point is that life is much more expensive than it used to be. If you’re in a rush to buy a laptop to start working from home, you might be able to buy it if you go to a buy now, pay later store. Buy now, pay later is a financial arrangement that allows you to make purchases and pay for them later on. It’s basically a type of installment loan. This type of arrangement is becoming à la mode, being preferred when it comes to shopping online. Using the buy now, pay later option can turn out to be convenient. It’s No Longer Just for Large Stores and E-Commerce BusinessesBuy now, pay later is now implemented into online platforms to engage consumers through the entire purchase journey, from beginning to end. In the old days, only large stores and e-commerce businesses would offer this financing solution. Now, it’s a completely different story. To be more precise, medium, small, and micro-enterprises accept buy now, pay later. The merchant receives the entire payment, except for the transaction fee, and on the spot from the buy now, pay later provider, who is responsible for charging the customer according to the agreed repayment schedule. To put it simply, you, as a customer, enter into a direct agreement with the buy now, pay later provider. The merchant, on the other hand, is granted access to a web portal or app, where they can check the status of the sales at any given time. Buy now, pay later services are now integrated into several websites that run affiliate programs. MyExchangeStore.com is one such example. It’s becoming increasingly common for online platforms to offer some kind of buy now, pay later option at checkout. At places like MyExchangeStore, you can shop for electronics, computers, furniture, appliances, and more. It’s pretty straightforward for merchants to set up this payment method. What Are the Benefits of Buy Now, Pay Later for Consumers?Buy now, pay later products make it possible for shoppers to split up the cost of their purchase. The purchase is divided into multiple equal payments. This comes in handy when you don’t have a pile of cash lying around. People can finance small or big items with no payment at all or a small starting one, and pay the rest at a later date. The remaining amount is paid in a series of interest-free installments. It’s possible to pay via check or bank transfer. Approval criteria can vary, but don’t worry because you’ll still be eligible. Select the payment plan and apply. You’ll know in a couple of seconds if you’re approved. The best part is that there’s no need for a credit history check, so this financing option is available for people who would otherwise not qualify for a loan. Owing to advancements in technology such as artificial intelligence and machine learning, it’s no longer necessary for financial institutions to carry out check out the credit profile of the applicant because the aforementioned innovations help reduce the risk of fraud and defaults. You’re told upfront what you need to pay and it’s generally the same amount each time. It’s recommended to use the buy now, pay later option only for necessary purchases. For instance, if your washing machine broke down, you’ve got no choice but to replace it. The buy now, pay later model is used by countless retailers for high-value goods or low-value goods. They’re interested in increasing conversions, reaching new customers, not to mention avoiding losing existing ones. People who know that this option is available on a website are more likely to return to make another purchase. Attention should be paid to the fact that, if you don’t make the payments on time or stop making payments, you’ll be banned from making other purchases. The terms and conditions are very clear, so take the time to understand what you’re getting yourself into. There’s No Way of Knowing What the Future Holds for Buy Now, Pay LaterBuy now, pay later accounts for a significant number of purchases, whether online or offline. It’s quite possible that this payment method will one day become omnipresent, just like credit card payments. People are constantly looking for new ways of managing their expenses so they can avoid going the extra mile for the basic necessities. You only have to look at the growing popularity of buy now, pay later to understand that it won’t remain an alternative payment method for too long. Even Revolut is entering the buy now, pay later market. It will launch its services soon enough. The industry is growing fast, so it’s managed to catch the attention of regulators. This is a good thing, as many problems can be avoided. Poorly regulated financial institutions undermine the stability of the system, harm consumers, and damage prospects for the economy. Some buy now, pay later providers have agreed to make affordability checks before lending to customers. It goes without saying that regulated entities wouldn’t do anything to compromise their reputation. If used correctly, buy now, pay later can be an extremely effective method to pay for things. Be that as it may, fintech companies should inform consumers about the ins and outs.
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