With the increasing popularity of demand services and rapidly developing e-commerce, new technology is emerged to facilitate others. Especially when the pandemic has disturbed the whole nation and people are more reserved in their places for almost everything. BUY NOW, PAY LATER-BNPL is gaining popularity relatively fast among buyers. They allow customers to buy as much as they want even at the places in a few clicks; however, this financing option doesn’t come without certain risks. It’s a type of short-term loan that allows customers to buy products in equal installments, often interest-free which suits best for purchasing consumer goods. BNPL is simple and easy to arrange also known as “point of sale installment loans,” as customers can use it right at a check-out counter; they also offer specific dates when installments should be covered with payments, so buyers always know when they need to pay next time. Choosing how and when they pay without any interest rate increase spending power and allow customers to determine their financial schedules. Also, provide them a great shopping experience. Although BNPL doesn’t charge the interest rate for the loans if somehow you missed paying your installment, they will charge you late fees that are unfortunately added up on time. After the missing payment, a BNPL provider starts charging their client with an interest that grows higher with every due date until the full payment is made. But on the other hand, when applying for a BNPL loan, customers don’t have to provide many documents or confirm their bank account or work-related details.
Moreover, BNPL performs quick checks to keep the processing time to a minimum also they don’t need to evaluate your salary status to provide you a loan which is a plus point. Buy Now, Pay Later is a convenient service that allows buyers to obtain products they want online and in offline stores immediately. Therefore, to provide an outstanding experience to their customers and increase their buying power, they are working more to enhance their features.