Buy now pay later is not a new one. Big purchases that are made in our families are usually done in this method. But, it was called different. Shop now and pay later was the term used or can be used for BNPL.
If you aren’t familiar with this, then you must have heard it like BNPL – got it right? Yeah, BNPL stands for, you guessed it right, Buy Now Pay Later.
Let us look at its definition, how it is been useful in the industry and also look at some BNPL Ecommerce companies.
What is Buy Now Pay Later (BNPL)?
Buy now pay later (BNPL) is one of the ways of payment that you can choose while purchasing a product. It is usually an option that you can opt for while purchasing. It can be used as an alternative for credit card payments.
Buy now pay later doesn’t get more amount instead, it asks for a certain amount as a fee as you are using this. And you can pay the fixed amount of your product in instalments without any interest.
How does Buy now pay later work?
Buy now pay later make the payment on your behalf and you can pay the amount to the BNPL company in instalments. You no need to worry about anything when you opt for this, as these companies will cover you with all the work.
So, how does this work? It’s so easy and conventional to use this BNPL. Just click on that when you choose your payment option. The click will redirect you to the respective site or app of your choice.
You have to accept the repayment plan, whether it is
Once you choose your plan then you can complete the purchase. After this process, you will be paid by the BNPL company and now you can pay the instalments directly to the BNPL provider. There is no extra amount needed to be paid when you pay your amount on time.
Benefits of Buy now pay later services
Easy checkout is essential in online shopping. And many ecommerce retailers are in a position to include whatever makes the customer purchase on their site. Apart from credit card payment, Gpay, and Cash on delivery they have included a buy now pay later option as well. Let us look at the benefits of BNPL services.
Get paid at once and can do repayment without any risk and fraud.
This will encourage many customers to do the shopping.
Retailers can give a better shopping experience to customers.
More customers, more sales and more conversions.
Increases the order values.
Boosts up the retailer’s revenue.
What is Buy now, pay later Companies?
BNPL is a kind of payment that you can find online and in stores. You can receive payment at once and pay the charge in a certain period of time.
Now let us look at the 7 popular BNPL Companies one by one.
Affirm is one of the buy now, pay later companies USA was founded in 2012 and it is located in the United States. It has financed over 17 million purchases.
They have an interest of 0-30% and have loan terms for six weeks, six months and up to a year. There are no fees and can have credit up to $17,500.
Afterpay is founded in 2014. It is located in Australia and expanding to New Zealand and the UK. They have 19 million customers.
And there is no interest in it. They have a loan term of six weeks and the fee is a late or missed fee of 25% of your purchase. Their credit starts at $500.
Sezzle is founded in 2016. It has 3.4 million customers with an additional feature that it can add in two weeks’ time.
There is no interest and a loan time of six weeks. Your account will be deactivated if you miss a payment and the will have to pay $10 for reactivation. The credit varies and differs according to the customer.
PayPal Pay In 4
PayPal is the best payment platform. It has offered millions of customers all over.
There is no interest in this and has a loan term of six weeks. There are no fees for this and have a credit line of up to $1,500 per transaction.
Another best BNPL company is Klarna. It was founded in the year 2005 by Economics students.
The interest in this is none if you choose to pay in a period of 30 days’ time. And it is 0 to 19.99% if it is for monthly payment. The loan time is 30 days and six weeks and it can go up to 3 years. The credit line can go up from $1,000 to $10,000.
Splitit is founded in the year 2012 and it is also considered the best BNPL company. You can choose this through credit cards and can pay your charge in instalments.
There is no interest in this. And the loan term varies and differs according to the customers. There are also no fees in Splitit. And the credit line is up to the customer’s credit card limits.
Zip is also known as Quadpay. It is an Australian company it is founded in the year 2013. You can opt for Zip in both online and in-store shopping.
There is no interest in this and the loan term is like six weeks. The fee is $1 for each payment and can go up to $4. If you make any late payment then the fees will be like $7. The credit line depends on and varies according to the user.
This is the information about buy now pay later. Make use of this for your ecommerce business. Or if you are a customer, do make sure to use this and gain benefits from choosing the best BNPL company. Make your shopping a happier one with the BNPL option.
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Which is the biggest BNPL company?
Hoolah, Openpay Group, Zip Co Ltd, LatitudePay, Monzo, Affirm Holdings and much more are the biggest BNPL companies.
Will your credit score be affected by using the buy now pay later option?
If you pay your installments correctly and settle your amount on time, then you do not need to worry about it. However, your credit score will be affected if you fail to pay on time or miss your installment amount.