How Customers Can Benefit From ‘Buy Now, Pay Later’

In the last year, businesses have seen a significant drop in cash transactions, as other payment options like e-wallets, cards, QR codes and net banking became the new normal. During this time, ‘buy now, pay later’ (BNPL) emerged as a popular credit option among consumers, giving them instant access to an approved credit limit, which could then be used for purchases.

What Exactly Is Buy Now, Pay Later?

As the name suggests, ‘buy now, pay later’ literally lets consumers buy a product and have it delivered while delaying the payment until a later date. This is a consumer-friendly alternative to cash or credit cards. 

Benefits Of BNPL

• Instant Access To Credit

If a store has an option for BNPL payment, you do not have to search for alternative credit options. With shop now pay later, you get instant credit at the point of sale, making for a smooth and frictionless purchase.

• Ease Of Use

Some BNPL platforms allow you to use the QR code option where you can simply scan the code and pay your instalment, whenever due. Other methods include UPI and card transactions. 

• Safety and Security

BNPL secures all payments made by you without having to swipe their cards or insert their PIN. It also doesn’t require your net banking details or transferring money from an e-wallet. A QR code or an OTP will be sent to your registered mobile number, which is all that is needed. 

Like all credit opportunities, it is important for you to practice financial discipline when making your repayments. Because if you miss a payment, you may attract a late fee which, in turn, impacts your credit profile. While BNPL is an attractive proposition for consumers, it is important to not get carried away. Maintain financial and credit discipline to maximise this credit option to your advantage.