What happens when you come across a product that you direly want but you don’t have money to buy it? The first thing you need to look for is finding out if there is a buy now and pay later plan. This is a transaction that allows you to buy an item and pay it before the ‘grace period’ given. It is a popular method where you can acquire an item, enter into a payment contract and take the product home. Increasingly becoming a popular option of product and service acquisition, it comes with several benefits.
Here are 5 benefits of BNPL that you need to know:
1. It allows you to settle your debt within the interest-free period
The beauty of buying goods and paying for them later is that it allows you to buy mobile on emi goods and pay later without incurring interest. For such a payment plan, the seller or the owner of the products allows an interest-free period in which payments should be made.
2. A good method to acquire expensive products/services
In most cases, people may not afford certain products because they are relatively expensive. In such a circumstance, buying now and paying later is the best option to consider. It allows you to purchase a product and pay for it within an agreed-upon period. For example, acquiring a smartphone set may be an uphill task for some while for others, it may be a 52 inches TV. With the option to pay later, you can simply buy it and pay for it after saving enough money to clear the debt. It is an advantageous method as it allows one to acquire even the most expensive products that cannot be purchased in a one-off payment.
3. Does not require any credit profile
Shopping and paying for products later do not require you to show a good credit profile. Unlike when you are applying for a credit card, buying now and paying later is open to everyone. The only thing that one is expected to express, is a strong commitment. It is a fact that there are many people with weak credit profiles and this method acts as a savior for them. Those with unfavorable credit profiles can still get a product of their choice and pay for it at a later date.
4. It promotes proper management of spending
You will agree that some people are habitual spenders and love shopping. Such people are likely to run out of money quite fast. Even though they make a decent amount of money, their savings are quite less as they believe in the ‘One life’ principle. With a shop now and pay later, they can get a product which they want and pay for it as soon as they have money. With this plan, a person can acquire or shop for those products and services which they want to buy, without worrying about how it’ll affect their lifestyles.
5. It is a strategy that increases sales volumes
For businesses that have eyes on increasing sales, this is a convenient method. Shop and pay later is specifically beneficial to retailers and wholesalers who operate on large product volumes. Adoption shop and pay later promotes a faster flow of products after which payments are collected at a later date. Although it is a different ePOS payment gateway charges type of business, the need to achieve high sales volume is always achieved.
Tried and tested around the world, the buy now pay later option is a hit. People who mostly avail of this option have money to spare but love the flexibility, encouraging them to shop more. Brands can potentially double their sales and achieve high growth rates, by giving this facility to their loyal customers.