In the past, offline retail businesses could easily lure customers with attractive schemes and discounts during the festive season. However, the scenario is different nowadays. Apart from a handful of customers, a majority has opted for online platforms. This trend has become more popular due to Covid-19. Since the lockdown, customers have shown an increasing preference towards contactless payment, and digital transactions have soared. Not only customers but employees also prefer cashless transactions. Major eCommerce players have come up with offers promoting digital transactions instead of cash on delivery. Also, although people were unable to go outside, it did not diminish their zeal towards festive activities like gifting. For these activities, people prefer to avail buy now, pay later (BNPL) services made available by businesses along with conventional digital payment methods. Due to the popularity of this payment method, more and more people embraced the offerings of BNPL. Advantages of BNPL
1. Instant micro-credit Buy now pay later guaranteed approval for microcredit and instant credit at the point of sale. In the absence of any paperwork or document verification, users get easy access to credit and can enjoy the perks of micro-credit without any lag. 2. Relaxed criteria for eligibility Unlike the credit card counterparts, BNPL services do not have stringent eligibility criteria. Even people with no credit history can enjoy buy now pay later guaranteed approval. 3. Zero cost A BNPL service does not charge any fee to its user. The service is entirely free unless the user fails to pay before a certain period, and even then, a minor /or fixed penalty is levied. 4. Ease of use BNPL allows for easy checkout, eliminating all hassle making a payment via credit/debit cards, UPI, and bank transfer. 5. Empowerment of consumer Consumers are wary of credit cards and their exorbitant fees, penalties, and hidden charges. However, as their needs haven't changed, BNPL is slowly gaining popularity. With transparency and ease of access it has given people greater control over their budget without sacrificing their needs and wants.
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Allison Janney is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sale financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader. |