5 Pros and Cons of Buy Now Pay Later (BNPL) Services

It’s a new realm of buying everything online as this world is digitalizing. Shopping online is more convenient. The world is developing tremendously, and things are just a click away from you. Online shopping also saves your time. With online shopping, businesses are coming up with new ideas to attract customers to their products. People usually pay online when they purchase something or prefer Cash on Delivery (COD), and then there is a new option introduced in the market, which is Buy Now Pay Later (BNPL).

BNPL enables customers to buy something on credit or installments within specific due dates. The installments are interest-free if you pay within the due date with a more petite time frame of total payment. Some people have to pay interest of 0.90% because of a prolonged full payment time frame. An online shopper of braided wig said, and I quote,’ knotless braid are so expensive, but with the Buy now pay later, I can afford one without breaking the bank.

But is this way of paying is convenient or not? Everything in the world has its pros and cons, with good comes bad and same for this case.

Following are the point of view enlightening pros and cons of Buy Now Pay Later services.

PROS of Buy Now Pay Later

• We often browse specific sites to buy things that we find fascinating, we keep adding stuff to the cart, but due to our low budget and tight financial situations, we walk out of that site when it comes to payment. But ever since buy now pay later have been introduced, people have been buying things and find it very convenient to pay in installments.

• Buy now pay later enables customers to choose their days of installment within their budget; this helps the businesses increase their sales and makes customers happy.

• Buy now pay later is much better than paying with credit as it enables us to pay no interest while ensuring the due date. It differs with some sellers, and they have a policy of making customers spend at least 0.05% or a little more with the installments, which are bearable.

• The installments are affordable and handy, and customers find them very easy with their budget. It means buying now and paying later make things more affordable than they are.

• BNPL account is handy and hardly takes a few minutes to start your account and BNPL purchases. One major pro of BNPL is you don’t need credit approvals to make an account.

CONS of Buy Now Pay Later

• Lack of customer support is the biggest con of buying now and paying later. The business failed to provide consultation to customers. There is no clear policy for BNPL, and small businesses are new to the markets, and they should ensure their customers of every small policy they have so the customer feels easy to reach when needed.

• BNPL options can be very frustrating when you have no funds in your account and fail to pay within the due date.

• In some cases, customers are led to severe debt due to BNPL policies encouraging people to buy non-affordable stuff. People often also realize that the thing they are buying is not worth buying because it wasn’t a need but a want.

• Late payment fees are a drawback of BNPL because sometimes, one late fee leads to an interest in every round of installments. It ensures that one should not buy something on installment because saving is always a better option.

• Cancellation of any order or change of mind is impossible with bearing some loss. This makes it less convenient for people who permanently save money by buying a budget-friendly product. BNPL depends on your psyche of spending money and how you can bear monthly installments in such a long run.   

Above mentioned pros and cons are based on different experiences; your experience can vary. While deciding to go for BNPL, always check the payments option to select automatic or manual. Make sure to have clarity before buying anything on BNPL conditions because no one likes losses.