‘Buy now pay later’ options are all over the internet today. More and more online stores and retailers offer this payment method. Like the name showed, Paylater service can let you split your payments into chunks monthly. But before using ‘Buy now pay later’ services, you still need to go through these products.
In fact, the concept of ‘Buy Now, Pay Later’ is not a new thing. You can find some retailers had provided the similar services many years ago. They let guests get a small installment plan, bring their goods back to home first, and pay the bills later. Now the trend of ‘Shop Now, Pay Later’ has changed from offline to online.
Today you do not need to wait at the retailers, you can just wait at home, since now ‘Shop Now, Pay Later’ is popular online.
According to Passfeed, more than 67% Americans are using ‘Shop Now Pay Later’ payment method. Today youngsters prefer to have this payment option, especially while they go shopping online.
Yet some shoppers have no idea about this payment gateway, here are 10 things you should know before using ‘Buy now pay later’.
What does ‘buy now pay later’ mean?
‘Buy now pay later'(BNPL) is a digital payment method, like credit card. With it you can make your purchases now and pay back your bills within extra period.
Normally you can pay your purchase goods in installment plans after one month or more.
Like newer ‘Shop now, pay later’ providers Passfeed, they enable you to make purchases at its eCommerce platform without paying.
Relevant Reading: Buy Now Pay Later: Everything You Need to Know
How does ‘buy now pay later’ work?
Many companies are offering ‘Buy now pay later’ payment method. You can simply download the APP and sign up your account. Then you can connect the APP with your personal information, you may need a credit check. After that you can use ‘Pay Later’ option with the stores which supports it. Sometimes you need not download the APP, like Paylater by Passfeed, you can use it at Passfeed easily.
Normally when you direct to the checkout page, you may find this ‘Pay Later’ option if the stores offer. By choosing ‘Shop Now Pay Later’ payment solution, you will see a breakdown of your installment plan. Once you confirm the T&C and due date, you may pay all your purchases later.
Why should you use ‘Pay Later’ instead of credit cards?
Sure credit cards are convenient, but not everyone has a credit card. Moreover most people are in debt due to the high interest fees of credit cards.
Contrarily, most ‘Buy Now Pay Later’ services are interest-free. It gives you a chance to pay bills later, but you will not be in debt if you obey the due dates. Normally you need to pay back monthly.
Will ‘Buy Now Pay later’ affect my credit score?
While using ‘Buy Now Pay Later’ option, some companies will do a credit check. If you have a bad credit, you may not get approved.
Actually some ‘Shop Now Pay Later’ services can be used as small loans. With these services, you can make a larger purchases. Although normally ‘Pay Later’ will not affect your credit scores, it’s still better for you to pay back on time.
How do merchants with BNPL increase revenues?
As a shopper, it would be a great way to shop. But how about the merchants? Since you pay every bills over time, how can they ensure their revenues?
Actually some BNPL(Buy Now Pay Later) providers will charge you interest fees, and get fees from the retailers. Besides sometimes if you forget to pay before the due date, you may need to pay a late fee.
Merchants may think how they can get paid while users pay them back later. But with the help of iMerchant by Passfeed, merchants can get paid upfront when they offer Paylater service.
Relevant Reading: How ‘Shop Now Pay Later’ is Shaping eCommerce Business?
Should I Shop everything with ‘Buy Now Pay Later’?
No doubt ‘Shop Now Pay Later’ offers you a convenient way to make larger purchases.
While you are new to ‘Pay Later’ option, you may just spend a little. After you notice the convenience, you will increase your frequency. But it does not mean you should buy everything over budgets with BNPL, otherwise you may not be able to pay back.
Does ‘Buy Now Pay Later’ just support a large purchase?
Normally people will use ‘Buy Now Pay Later’ option to make a large purchase. But you can also use it to make small purchases.
Like Paylater, you can make all small purchases at Passfeed(the leading eCommerce platform in the US).
Both purchases are the same, you can still split your amounts into 4 installments. Everything will be affordable.
Should I use multiple ‘Buy Now Pay Later’ services?
It depends on which retailers you choose. Different retailers may support different ‘Shop Now Pay Later’ services. Sure you can sign up various BNPL services if you need. Like using different credit cards, you need to take care of your multiple accounts. Do remember to pay your fees before the due date, otherwise you may need to pay extra cost.
What benefits can you get with ‘Buy Now Pay Later’?
You may think why you should use ‘Shop Now Pay Later’ and the benefits.
In fact most people prefer this service because of its convenience and interest-free payment plans. With ‘Shop Now Pay later’ payment method, you can enjoy your purchases at home, and pay the fees over time.
Will I spend more money with ‘Buy Now Pay Later’?
When you go shopping, ‘Buy Now Pay Later’ is helpful. Everything becomes affordable, you can make all large purchases in an installment plan.
Some people will insist ‘Shop Now Pay Later’ will cost they more, but in fact this payment method let you use your money more flexibly. Before the due date, you have the chance to invest others, so you can get revenues from other channels.
What apps let you buy now pay later?
In the market, you can find various apps let you shop now pay later. Instead of shopping at the local retail stores, now you can buy what you want online with this payment gateway.
Paylater by Passfeed is the most popular ‘Buy Now Pay Later’ app for you to make payments without full amounts in advance. With the convenience of Paylater by Passfeed, the innovative shopping app offers you a better experience to shop.
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