We all want to have a simple, yet exciting purchase experience for our products. So it’s easy to see why a lot of people are using the ''Buy Now, Pay later'' (BNPL) payment systems. The idea of being able to take your product home and pay later appeals to everyone, and it feels like a dream come true. That’s why, according to the Australian Securities and Investments Commission, consumers racked up around $903 million in ''Buy Now, Pay later'' last year.
How does the ''Buy Now, Pay later'' system work?
There are more pay later stores because the ''Buy Now, Pay later'' system is very easy to use and implement. The idea is that you share your credit card information with the company whenever you want to initiate the purchase. You can take the product with you and you will have to repay everything as agreed. Otherwise you will deal with credit card debt and a low credit score. The ease of use and adaptability of this pay later e-Commerce system is what makes it so interesting and unique. And the best part is that the entire process is all about convenience and value. It works great, it’s super easy to customize and every business can use it under its own rules.
''Buy Now, Pay later'' benefits
One of the main benefits for people is that they can save their money as they pay later for that product. Also, most companies that provide BNPL feature don’t come with any payment processing fees for the consumer, which is a plus. Then there’s also the fact that the process is very easy to set up, there are no credit checks. So you can use the ''Buy Now, Pay later'' system even if you have a low credit score. And yes, many pay later stores are working offline and online as well, which is a great thing! BNPL system offers a good in-store experience, since the customer can simply book online the product and take it in-store avoiding the checkout queue. In the other hand, integrating BNPL makes a business more competitive and appealing since the consumer can try the product before paying for it. Also, people are more willing to shop online using BNPL because they don't fear to be cheated.
Are there any downsides?
At first, the ''Buy Now, Pay later'' approach seems to be very attractive. But it does come with its fair share of downsides. First, you can easily end up in debt because you don’t have a limit that will stop you from purchasing stuff. You might end up in more debt than you can handle. In fact, you spend money that you don’t have right now, which is not exactly great to begin with. And in many cases, people that use the BNPL system just buy stuff for the sake of it. Also, banks don’t like the ''Buy Now, Pay later'' systems. In addition, the companies that provide such a system have some harsh late and dishonor fees.
In conclusion, the ''Buy Now, Pay later'' system seems appealing, and it might work great if you want to purchase a few items. For business, putting a limit and using the right technology can make the difference in offering the ‘’Buy Now, Pay Later option’’.
BNPL is a great option, but you do need to use it responsibly.