Buy Now Pay Later |Boost Your Sales
What is BUY NOW PAY LATER exactly is?
Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them at a future date, often interest-free. And the merchant from whom the buyer makes purchase is paid upfront.
What are key benefits?
- Buy now, pay later payment option offers short term ,interest free loans that allow consumers to make purchases and pay for them at a future date.
- Consumers typically make an small upfront payment toward the purchase, then pay the remainder off in a predetermined number of installments.
- Buy now, pay later plans often don’t charge interest and are often easier to get approved for than traditional credit cards or lines of credit are.
- Normally, BNPL doesn’t affect your credit score; however, late payments or failing to pay can damage your credit score.
How BNPL Works?
- You make a purchase at a participating online ecom portal, opt for buy now, pay later at checkout.
- If approved (you’re told in seconds), you may make a small down payment, such as 25% of the overall purchase amount.
- You then pay off the remaining amount due in a series of interest-free installments within agreed repayment period.
- You can pay remaining due amount thru online payment within agreed repayment period without any interest.
Pros of BNPL are..
- Convenient, disciplined way to pay for purchases over time
- Frequently zero-interest or lower interest than credit cards
- Good credit/high credit score not necessary to qualify
- Fast approval
Buy now, pay later supports that consumers who can get the things they need immediately — while also getting a little extra time to pay for them at zero interest.
Buy now, pay later financing may seem appealing if you can’t afford to pay the bill for something all at once.