Buy Now Pay later applications have contributed to maintaining a cash flow in the lives of people without credit cards.
Finance technology has revived the concept of Shop now pay later by launching the BNPL (Buy Now Pay Later) application, having a much more clear payment and interest plan for the loan.
Buy Now Pay Later applications elevates the affordability and purchasing power of the people by supporting them in maintaining a balance between their purchases and cash flow.
What is the BNPL application?
Buy Now Pay Later application is a micro-credit application that allows small credits to the user with zero interest. Every BNPL application has their own terms and conditions to offer small credits.
Listing below list of benefits that BNPL applications provide:
1. Instant Access To Credit:
BNPL applications have made credit opting much easier by providing users with the advantage of instant access to credit, supporting a smooth and frictionless purchase.
BNPL applications offer the user an interest-free loan allowing them to shop now pay later.
2. Convenient To Use:
BNPL applications are easy to use because of scaling up the highly convenient feature in the design of the platform.
BNPL applications are integrated with some of the major e-commerce and utility applications like Zomato, Flipkart, BookyMyShow, MakeMyTrip, and Urban Company, allowing the user to shop now and pay later.
BNPL applications also have a QR code linked with the payment applications to pay at retail shops. Thus, making it easy for users to make payments both at online and offline platforms.
3. Safe And Secure:
BNPL applications help users to make secure payments without swiping their credit or debit cards and entering a PIN Code, keying in their net banking details, or transferring money from an e-wallet.
An OTP is generated and sent to their registered mobile phone, which is all that is needed to make the payment. BNPL makes the shop now pay later safe and secure.
4. Help Building Positive Credit Profile:
BNPL applications help one build a positive credit profile, as BNPL applications offer small loans without interest that are easily repayable.
BNPL applications support building a positive credit profile only by one upholding one end of the agreement with the lender or merchant and making ones’ repayments on time.
How To Use BNPL Applications In A Responsible Manner?
1. Monitor Your BNPL Transactions Diligently
It is an important point that one should always keep a tab of one’s expenses. One can have various BNPL transactions with different merchants or lenders, but monitoring your total amount is essential to understand your budget and expenses.
Never go off track of your accounts. One should always know their financial stand, credit obligations, and other dues, so err on the side of caution.
Try avoiding overspending, even if it is within your approved credit limit. It makes repayment of your dues difficult.
2. Choose Your Repayment Tenure Smartly
One should not take the BNPL flexible payment scheme for granted. One should go through the BNPL application terms and conditions of repayment tenure carefully.
Choosing appropriate repayment tenure is important as there are plans that may have some charges applicable.
If the repayment period that one has opted for is an interest-free one, one will not have to pay anything. Ensure you make your repayments before the due date, or you may be charged late fees. However, if you make an expensive purchase, you can opt for instalment repayment tenure.
3. Never Miss Your Payment
It is crucial to follow financial discipline. One should make all the repayment before the due date.
Failing in repaying on time will lead to late fees, and it will have a major impact on one’s credit profile. Ensure one repay their BNPL amounts due by the agreed date to enjoy the benefits of a loyal consumer.
BNPL applications provide an appealing proposition to the users, but it is essential to use BNPL with a responsibility to optimize the utility of these applications.
One should keep all these points in their mind while using the BNPL applications. It is important to maintain financial and credit discipline to maximize this credit option to their advantage.
BNPL: Increases Affordability And Purchasing Power
BNPL applications solve the problem of affordability and keep the purchasing power of the consumer intact.
BNPL is not merely an alternative way of shopping online. It represents a paradigm shift in the way we make purchasing decisions.
BNPL offers small credit to the consumers at minimal to zero interest for a short period of time.
BNPL elevates people’s purchasing power and makes an array of products and services affordable and accessible to them when they need it, and not the other way around.
Rather than making a huge payment for the desired product or service at once, the consumer can instantly purchase products by shop now and pay later, dividing the payment over three, six, nine or twelve months.
The advantage is that the credit facility comes with an interest-free policy that allows users to make purchases with reduced financial strain.
BNPL applications feature of being paperless KYC (e-KYC) make them a hassle-free alternative for accessing credits. It also eliminates the wait time that is traditionally associated with availing of personal finance.
BNPL applications are a boon for the Millennials and Gen Z, as they are evolved as a digital generation.
Today’s generation is a key participant in the digital revolution. They are not only being active in socializing applications but also in the finance sector.
BNPL applications support the purchasing intent of Millennials and Gen Z by increasing their affordability of goods and services and their purchasing power.
Conclusion
The BNPL application is a revolutionary tool that helps people maintain a balance between their desires and financial ability to accomplish these desires.
The platform ease and convince help users to enjoy the perk of shop now pay later, which increased their affordability and purchasing power.
Interesting Related Article: “Payment on the Internet is becoming increasingly secure“
from Business – Market Business News https://ift.tt/32GyaCS
via IFTTT
0 Comments