The phrase "Buy Now Pay Later" or "BNPL" has become popular, at least among "online shoppers." Why? It's not too difficult to guess the cause. It is a result of the expansion of e-commerce!
If you regularly read tech news or even just skim through it, you must be aware of the unparalleled boom that e-commerce has experienced. The e-commerce sector's rise has greatly aided the expansion of BNPL platforms.
E-commerce has expanded as a result of the addition of new payment options and unmatched benefits at the same time. One such payment option with fun additions is BNPL.
However, there are still a variety of payment options. So why is Buy Now Pay Later so appealing to people? Soon, we'll look at the characteristics that might provide an answer. But first, let's define BNPL so that we can move on.
What is buy now pay later?
BNPL is a short-term financing choice that enables customers to purchase goods and then pay for them over a predetermined time period. They have two payment options: free EMIs or a lump sum payment for the products.
The Buy Now Pay Later facility provider will assess interest on the amount if customers don't pay it within the specified repayment period. In addition, missed payments may lower their credit rating.
How does buy now pay later work?
The majority of BNPL payment option providers use the same operating models, which they differentiate from one another by using different terms and conditions. The fundamental idea behind this payment option is that it allows borrowers to buy what they want and pay for it over time.
Generally speaking, the credit period varies depending on the transaction amount, from one month to 36 months. On the other hand, the financial institution or service provider that makes the BNPL option available chooses a unique credit limit for every customer.
In general, Buy Now Pay Later operates as follows:
● The consumer purchases a good from a participating store.
● He or she selects BNPL as a payment option during checkout and accepts the terms of the lender.
● The customer then places the order and decides to pay the full amount at a later date (usually around 30 days)
● Additionally, he or she has the option to divide the total amount due into interest-free EMIs.
Features of buy now pay later apps
Limit of spending
As can be seen, the majority of BNPL platforms are only available for minor purchases. You have fewer chances of getting into debt as a result. The last thing you want when using Buy Now Pay Later systems is to lose money.
Transparency
Hidden fees are a common feature of credit cards. Being in debt is the last thing someone who is still learning the credit game wants.
As a result, BNPL is favoured by the majority of people. There are no unforeseen fees. You only have to pay EMIs. Millennials value transparency and a lack of surprise fees.
Secure Transactions
What will you pay the greatest attention to when making a payment? A secure and safe setting for transactions. Platforms from BNPL offer a secure setting for transactions. Therefore, you can make your payments without having to worry.
Simple Usability
Most people are perplexed by how a FinTech app operates. Sincerely, I find it to be somewhat aggravating. You are spared from this annoyance by BNPL platforms! These programmes are comparatively simple to use. If you're still unclear, just searching the internet will be helpful.
Quick verification
Isn't it annoying when a quick verification process takes an absurdly long time? We are aware of that, as are BNPL platforms. As a result, verification in these apps happens fairly quickly. You don't squander your valuable time, and users prefer instant approvals and processes in this fast-paced world.
Paperless
The fact that everything is digitalized on BNPL systems is one of their best qualities. Users must produce no offline papers. The entire loan application and approval process happen online. The paperless technique is now the most widely accepted practice.
Easy account management
These apps are more popular with users, making it simpler for them to manage their accounts. Users can view all of their information at once with buy now pay later apps. They get quick access to details about their transactions, payments, and private information.
