The term, buy now and pay later refers to the customers paying for their purchase after a set time. It can be thought of as a deferred payment that helps customers to enjoy the benefits of buying their favorite products and paying at their own pace after a time.
In the past, Shop now pay later was thought of as an interest-free period purchase, and during the process, no processing fees were charged. However, once the period was exceeded, the interest from the original period was added.
Shop Now, Pays Later comes into play when a third party offers the consumer an on-the-spot payment option. The customer can attain the best products simultaneously and pay the interest to achieve a deferral payout option.
The rise of Shop Now, Pay Later options
The past few months have observed a significant drop in the number of cash transactions. With a rising number of young people using the online space to handle their billing and payment options, the demand for the pay later apps is also rising.
The changing landscape of the Indian financial ecosystem has bought several players in the Shop now pay later scene. The same has become a popular choice for young people or consumers who need instant access to the approved credit limit.
In some instances, it can be equated to a small ticket loan. It helps to ensure that one gains access to a significant amount of money and a convenient payback period. From shopping online to paying your bills – the cashless payment options offered by the pay later apps make it a quick and effective alternative for customers to realize their dreams.
Benefits of these apps
Choosing from the right shop now pay later options helps to –
- Attain instant access to credit
You do not have to search high and low for an alternative credit option. With the right shop now to pay later apps, you are offered instant credit at the point of sale. It makes for a smooth and efficient purchase.
- Ease of use
Some of these platforms allow you to scan the code and make the payment. Others may allow you to complete the transaction using a UPI transaction.
- Safety and security
It also provides consumers with a secure payment option as they do not need to swipe their cards or share their PIN. An OTP is generated that is sent to the registered mobile number in case of a credit purchase.
Maximizing the gains from the pay later app
To attain the best results from your pay later app, you need to build a strong credit profile when you have a good payment history or uphold your end of the agreement by making repayments on a timely basis.
- Monitor your transactions
You can make various payments with different merchants or lenders, yet you need to ensure that you have a clear idea about the overall amount spent by you.
You need to know your financial stand, credit obligations, dues, etc. Overspending can make it difficult to repay your dues.
- Select your repayment tenure
The flexibility offered by the service provider can vary in terms of repayment terms and tenure.
If you have selected a repayment tenure that is affordable or interest-free, you can make huge savings. A missed payment means that the repayment will attract a late payment fine or impact your credit history.