Why Buy Now Pay Later Is a Good Idea?
Why Buy Now Pay Later Is a Good Idea?
Buy now, pay later (BNPL) is a financing option that permits buyers to buy something but pay for it later within a specified interest-free period. The provider of BNPL pays the bill outright with the merchant on the buyer’s behalf. This option is open for everyone, even for those who don’t have credit cards. Like credit cards, ‘Pay later’ shopping typically refers to an interest-free period following the purchase, during which no payments were made and no interest charged. It presents them with easy access to credit for small-ticket purchases. The first-time user on the platform will have to complete the KYC process to use this feature. The interest-free period is generally 15 days. While the credit limit is extended based on the CIBIL record from Rs. 500 to Rs. 10,000, which can be further extended.
Benefits of Paying via BNPL
Listed below are the benefits of Buy now, pay later:
- One-tap Instant limit: The user can pay with just one tap, within seconds. Users can avail of instant credit limit just by providing the basic document.
- Interest-free period: While paying with BNPL, the user enjoys Interest-free 15 Days credit period. This means that you can order food, groceries, and more, and pay for it later. No interest is charged on user for 15 days
- One App: It aggregates all your orders on various apps, and presents one single bill for repayment, after every 15 days.
- Repay in easy EMIs: Users are given the flexibility to convert the borrowed amount into easy monthly installments.
- No documentation required: The user don’t have to go through lengthy documentation process to activate the feature called Buy Now, Pay Later.
- No hidden charges: No hidden charges are charged by the BNPL apps, if the dues are paid timely.
- No Charges/Fee: Say goodbye to payment charges or interest fees because it provides you an opportunity to pay later without any hidden fees or additional charges.
- Offers: Unlock cashback and discounts on various merchants. More transactions = more savings
- Quick Refunds: If in case of cancellation of order, the user do not have to wait for your refund for days!
The reason why BNPL is getting popular among the consumer is that they are open to and hungry for new and time-saving online payment methods, particularly if they give more flexibility and a feeling of greater power over their finances.
The modern revolution in fintech space has proved that whenever there is a need to reduce financial friction, startups will rush in with innovative solutions. Also, this new payment alternative could additionally weaken the traditional credit card market.