When someone said “buy now, but pay later” a few years ago, they meant using a credit card to make purchases and deferring payment until later. However, in recent years, buy now pay later plans (BNPL) have been made available to consumers by e-commerce businesses and even fintech organizations. With the help of the BNPL financing option, customers can make purchases and pay for them later, interest-free.
Are there any offers or cashback options available for BNPL services?
The benefit of using a buy now, pay later service is that even those without credit histories can benefit from short-term credit. So, are there any additional advantages or deals the BNPL services provide?
Additionally, BNPL services have partnered with many businesses that offer customers deals and discounts. You might even have a chance to snag deals that are superior to credit card offers. Cashbacks are a feature of credit cards; however, the BNPL services still need to offer this option.
Features offered by BNPL services
Although BNPL may not be offering cashback features currently, there are still a lot of other significant advantages of using a BNPL service.
Free credit period
The majority of BNPL lenders provide credit-free periods for their plans. These can last from three months to twelve months. When you purchase, you can split your payments into more manageable EMIs.
No-interest period
Interest-free periods are another feature of BNPL services, although they can vary from lender to lender. Some will offer an interest-free period shorter than others, and vice versa. This is something you can quickly check when applying.
Fees
For joining this facility, most bank-led BNPLs don’t charge processing fees. Different standards apply to BNPL lenders when determining fees. Certain companies don’t charge their consumers any joining or yearly fees.
Interest Rate
In the case of BNPL services, interest is only assessed when the customer’s interest-free term has expired. Additionally, the bank-led BNPL would charge a lower interest rate than other lenders.
Eligibility requirements
Accounts for buy now pay later can be made quickly and without any effort. Consumers who don’t have credit cards can also use BNPL services; they can do so with ease. These services are also available to those without credit histories.
Quick and simple access
Online shopping is significantly more straightforward and more practical with BNPL. You won’t have to fill out any forms or undergo a drawn-out procedure as a customer. Only one authentication step exists to complete to make the payment and continue with the purchase.
Additionally, consumers who apply for BNPL won’t have to wait to shop until they get their card. Thanks to BNPL Lenders’ instant credit line service, you can start making online purchases when approved.
Why use services that you may purchase now and pay later?
The following are some of the justifications why individuals prefer BNPL services over credit cards or other payment options:
- You can pay a down payment and the balance over several instalments.
- Most BNPL lenders are easy to work with and don’t charge any interest.
- BNPL has no impact on your credit scores; nevertheless, late or skipped payments may.
The Bottom Line
The main goal of BNPL’s introduction was to make it simple for clients to purchase items they urgently required while simultaneously granting them additional time to pay for them. This is one of the best solutions when you want to pay only part of the amount at a time.
However, before proceeding with any financial transactions, always read all the terms and conditions. Always consider the advantages of each decision before approving any contract. After all, handling finances is the most daunting task.
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