Buy today from an online shopping store and pay at a later date

 

There are several hundred online shopping stores, and prospective customers have a wide choice to begin from search engines, locate online stores and have marvelous shopping experiences. The best part is that many online shopping sites are affiliated with the buy now pay later facility. This essentially means that buyers select products and create an online shopping cart. Buyers can select the shop now pay later option during the payment gateway. The BNPL (buy now, pay later) facility allows buyers to pay a token amount upfront and pay the balance in easy monthly or fortnightly installments. This is a very convenient facility, and shopping has become more affordable when there is an option to pay back over several weeks.

More than just credit

The buy now pay later facility is mainly operated by fintech companies, and they are now also offering a wide range of rewards, loyalty incentives, and discounts. This facility has undergone major changes. There are now varied repayment options and installment schemes for high-end and bulk products, including items such as furniture, home décor, and health care plans. All these services were not affordable while paying upfront. Still, the fintech companies have recognized these constraints and are now offering flexible repayment options over several months to make them affordable for the common man.

While the eligibility requirement is not so stringent as for credit cards and other credit facilities, applicants must be salaried persons with stable jobs and a bank account. Approval after the application is almost instantaneous, and no credit checks are required. Applicants are, however, advised to keep their credit scores high and clear all past debts. Though no prior credit history is required, creditworthiness plays an important role during BNPL transactions later. Users with a higher credit score get extended credit periods for high-value transactions, and there are no interest or hidden charges provided payment is made within the stipulated period.

Phenomenal growth

Buy now pay later is growing in popularity and usage and is expected to cover as many as 10 to 15 million users in India alone from 2022 till 2026. The amount of transactions is also expected to touch US $50 billion from the present level of US $ 5 billion. The scope of buy now pay later has increased to cover travel, bill payments, hotel stays, and even payment of annual college fees. A holiday appears much more affordable when the payment is spread over upto a maximum of 12 months. People can indulge in their desires and deep wants and get merchandise ranging from a laptop to designer furniture. Health enthusiasts can get themselves some workout equipment. Budding beauticians can get themselves equipment for beautification and skin treatment. The option of BNPL has helped boost business in a big way. Even MSMEs can get business loans in the form of credit at low costs, which works out much cheaper for them than going for a conventional business loan.   

Using the buy now pay later is a win-win situation for all stakeholders in the business. Online shops also benefit as they are always paid in full even though the concerned fintech company pays the concerned merchant in full while it is still recovering the cost from users and customers. In other words, the merchants who own the online shopping stores have no risk at all. Moreover, they are assured of a regular market in the form of all the users of the buy now pay later facility they have signed up for.

Buy now pay later has the advantage of the latest technology as almost all the fintech companies use artificial intelligence and the internet of things for their business. BNPL uses the latest technology to access consumer behavior, spending habits, seasonal trends, and credit history records. Online shopping sites use this data to stock and display goods that are in demand, popular, and are likely to result in higher sales volumes. Artificial intelligence and machine learning help stores boost their sales and interact with customers to make their shopping experiences memorable and make them come back again and again.

Bringing back the thrill of online shopping

Online shopping is now an even more satisfying experience with the added buy now pay later facility is an added facility. Today, the BNPL facility has grown from a POS (Point of sale) payment option to a new shopping experience. The power of artificial intelligence has been working in the background to provide the best things to customers with the most convenient payment choices to make the shopping experience thrilling. Customers come out feeling satisfied, and there are pleasant surprises in the form of rewards, cashback, and discounts. Customers make money through rewards and savings, with almost no interest or hidden charges.