Why BNPL for Online Shopping?

BNPL or Buy Now Pay Later methods have transformed the 21st century shopping experience exclaimed Bahaa Abdul Hussein. Popular BNPL payments include Klarna, Sezzle, Afterpay, Affirm, Amazon’s Pay Later, PayPal, ZestMoney and so on. We analyse the pros and cons of using BNPL in online shopping.

Quickness

BNPL is emerging as everyone’s favorite payment solution as it is a speedy means of buying what you want. It trumps over traditional payment methods like cash, credit or debit cards as it acts as an immediate point-of-sales (POS) loan facility.

Ease of access

Setting up a BNPL payment service is also easier than other payment methods. Most only require basic information to verify the user’s identity and no credit checks. With Amazon and Apple’s Pay Later schemes, you can even shop on the go.

0% interest

The fact that BNPL solutions charge no interest has got to be their biggest advantage. This is why they are superior to credit cards that require monthly minimum payments, and also attract higher interest rates and late payment fees.

Paperless transaction

Going cashless is now a reality even in retail stores. Most major retailers offer and accept BNPL plans to their customers. Next time you’re shopping at Target, you don’t need to carry cash or credit cards.

Tailor-made options for payment

The BNPL market has a plethora of payment solutions to consider, with better companies coming up every year. Many of them provide personalised payment methods. You might want a 8-month payment scheme or wish to apply your accumulated balance from a particular BNPL service. There’s a BNPL company out there that will cover your needs.

Growing concerns over BNPL dominating online shopping

Banking overdraft

Always ensure you have sufficient bank balances and credit card limits before you make a BNPL payment. Since BNPL payments are generally automated on a periodic basis, there is a risk of banking overdraft.

Overspending

Since BNPL allows us the flexibility to pay beyond our purchasing powers, it tends to encourage impulsive shopping habits. It can be difficult to manage your finances if you’re making multiple BNPL purchases at the same time.

Cyber threats and scams

With the proliferation of BNPL, there is also a rise in security threats and shopping-based fraud. One should exercise caution while enchanting new e-commerce sites or BNPL merchants you haven’t heard of before.

Failure to repay

Like in the case of most loan solutions, failure to repay the BNPL installments on time will incur a late fee. If you aren’t prompt, you could end up spending a lot more than the original price of the product.

Keep these things in mind the next time you opt for BNPL payments. Thank you for your interest in Bahaa Abdul Hussein. For more information, please visit www.bahaaabdulhussein.com.