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As the festive season nears, a host of mind-blowing discounts and offers start to pop up on our favourite e-commerce sites. But sometimes, when you have a long list of things to purchase, only discounts and offers won’t help you stay within your monthly budget. This is where the concept of Buy Now Pay Later comes into the picture.
How does BNPL Work?
When you shop on a website that has partnered with a BNPL provider, you can purchase items now and pay for them later. All you have to do is choose what you like, and when checking out, use your preferred BNPL provider as your payment option.
The advantage: You make the payment as per the agreement, in instalments, or as a one-time payment, at no or low interest within a stipulated period.
Why Use BNPL?
› Pay in instalments
Festive shopping can often stretch your budget a bit, but with BNPL, you needn’t worry about that. BNPL platforms allow you to make purchases via instalments. For instance, Simpl, India’s leading 1-tap checkout network, has a Pay-in-3 option. You simply pay in instalments according to the billing cycle. This allows you to keep cash handy for a rainy day.
There are no hidden charges or clauses when it comes to the BNPL option. BNPL models operate on trust and transparency. Plus, there are no miscellaneous fees levied separately.
› Expense Tracking
BNPL providers partner with multiple merchants to ensure you have an array of choices. Towards the end of your billing cycle, you will receive one bill for all your purchases across different platforms. This will help you keep track of all your festive season expenses as they are all recorded together.
Who Should Avail BNPL?
Prospective Credit Card Users:
As we all know, getting instant approval for credit cards can be a nightmare sometimes, especially with regulations around credit scores. Add a joining fee, renewal fee, and high-interest rates, and the prospect of attaining a credit card becomes daunting. These factors might discourage some people from using or even applying for credit cards. Here’s where Buy Now Pay Later becomes a great alternative to credit cards.
Those looking to save:
Consumers who don’t want to dip into their savings during tough times can also consider BNPL. It allows consumers to make a purchase and pay for it later or in small instalments, thus making sure that there is enough room in their budget for other expenses.
Those purchasing right before payday:
This also is of huge help for consumers who find themselves cash-strapped a week or so before their payday. They can easily purchase their festive season needs using BNPL and pay for them after their salary arrives.
What Are the Features of Buy Now Pay Later?
› Hassle-free Registration
BNPL doesn’t require endless visits to the bank or meetings with bank executives for any verification. You just have to sign up on the BNPL providers’ platform, set your spending limit, and you are good to go.
› Zero or Low Interest
One of the many things that make BNPL so attractive to the millennial crowd is the zero or low-interest rates. This allows you to make purchases and repay them at a later period without incurring high-interest rates.
› Convenient and Quick Checkout
Hopping from one interface to another while making a single transaction is time-consuming. BNPL providers help you skip these multiple steps by letting you make your purchases with one tap, like what you can do with Simpl. This feature is especially useful when you’re shopping for something that’s on a flash sale.
› Single bill for all purchases
BNPL providers make transactions convenient by providing you with a single bill for all purchases made within a time period. The transactions can either be cleared all at once or one by one within the time period. The choice is completely yours!
› Instant Refund
Ordered the wrong gift? No more waiting for the money to be credited back into your account. BNPL offers instant refunds!
› 99% Transaction Rate
With only a single click needed to make purchases, BNPL providers have made transaction failures nearly negligible. Simpl is a connected, open checkout network that offers merchants and customers a 99% successful transaction rate.
Tips to Remember While Using BNPL
› Keep Track of Payment Cycles
Attractive ads might make BNPL seem like a service that allows you to shop till you drop while thinking of your primary expenses later. But what BNPL does is let you shop mindfully. Plan in advance for the festive shopping keeping in mind your chosen BNPL provider’s payment cycles to avoid repercussions.
› Know all charges associated with the service
As with any financial product, read up on the terms and conditions associated with using BNPL services. Some providers charge a nominal interest rate, whereas others, such as Simpl, have no extra charges except for late fees.
› Read about the return policy
Before placing an order, cross-check whether the merchant’s return policy is compatible with the BNPL provider. Do you have to pay your BNPL provider the amount after the return is successful? If not, how will the refund take place? These are some things you should know.
This festive season, if you want to explore a more convenient method of payment, BNPL is the perfect digital payment option with a promise of security and ease of access.