7 Neat Advantages of Using Buy-Now-Pay-Later Services

Buy-Now-Pay-Later or BNPL services have been increasingly popular to consumers these days. Those seeking a balance between the need to purchase something and managing tight budgets can now opt for this any time, as long as the merchant offers it. It’s an alternative method of payment that provides control and flexibility by enabling consumers to acquire a product they want first and pay later.

BNPL is short-term financing that lets consumers make purchases and pay them at later dates, which is often interest-free. It’s also a point of sale installment loan, which has become widely known, especially in online shopping. Many apps like Klarna now offer this kind of service to make shopping easier for you, and you won’t have to worry about the payment upfront.

Hence, here are some of the top advantages of BNPL services:

1. Quick setup and approval

Generally, it only takes no more than a few minutes to set up a BNPL account. Unlike credit card applications, BNPL providers don’t do credit background checking at all before your approval. They only ask for a few details, such as the bank account from which they will deduct your payments. It would help if you had a few things to accomplish when signing up to any website—username and password, contact number, verification sent to your phone, name, date of birth, and bank information. 

2. Easy to use

You don’t need to shop exclusively online to benefit from BNPL platforms. Nowadays, tons of providers are available in-store at many retailers from across the globe. The BNPL providers are also fully integrated within an online shop’s checkout, making the entire transaction process easy. All you have to do is pay with the named BNPL provider when checking out, rather than placing all your details from a standard credit card. They will then send an email after completing the transaction, so you have a copy of your own. 

3. Interest-free terms

If you’re looking for a payment option that does not charge interest on the amount you borrow, then BNPL is the perfect financing for you. They will only charge you fees for late payments with this service, and it happens when there’s insufficient money from your bank account during the scheduled automatic billing or due date.

4. Convenience

There’s no need for you to log in to your online bank account or line up at the bank to arrange your payment when you choose a BNPL service. It automatically deducts the amount you’ve purchased on the bank account you’ve supplied during the application. Auto-charging service is one of the most convenient payment methods when buying items online. Just make sure there’s enough balance when it’s time to pay.

5. You can choose the best payment plans for you

BNPL providers usually create a payment plan for you. They split the total amount of your bill into a certain number of installments, then all you have to do is pay when the due date comes. If the payment plan is good, you can proceed to check out already. The repayment tenures are reasonably flexible, with up to six payments options. It helps you budget your money correctly for the coming months by considering the amount you need to repay and how long it will take to finish it. Thus, choose a payment plan wisely.

6. Excellent alternatives to a credit card

If you’re looking for an alternative to a credit card, BNPL could be it. There are a lot of consumers, particularly the younger ones, who give up credit cards and opt for BNPL instead these days. They are turning to BNPL platforms because of the lesser risks and costs. Also, you’ll be avoiding paying high-interest amounts, which are typically associated with credit cards. However, you still need to ensure that you can afford to make repayments every time.

7. Safe and secure

There’s nothing to worry about when using a BNPL service, and you can use safe payments without the need to swipe your card or enter a PIN. The only requirement is an OTP sent to your registered contact number. Thus, this payment method is safe to use and gives you peace of mind, especially now that various people are getting scammed.

Takeaway

BNPL services offer simple credit solutions for consumers to manage purchases and expenses better. But you have to remember that it’s still a loan that needs to get repaid on time. Be disciplined in making purchases, and don’t spend recklessly. While there are a growing number of merchants that cater to BNPL services, you should only trust the top-rated providers. Sign up with only credible providers to avoid scams in the long run.

We appreciate you for reading until the end, and we hope this post has convinced you to maximize Buy-Now-Pay-Later services. Also, be sure to check out CellularNews.com for more guides and app reviews!