Buy now pay later is a genius idea that came into the limelight since the fintech rush. It’s a combination of creditworthiness and technology that allows shoppers to split payments into four installments over a given period. Credit card payment used to be a thing for the big players such as Visa, Master Card, American Express, and Paypal. But, with the introduction of Fintechs such as Stripe, Zip Pay, Mercury, Klarna, and Afterpay many new opportunities have surfaced for shoppers.
With the effect of inflation on the global economy, most decent-earning middle-class Americans have to undertake some form of loan to facilitate a purchase before the end of the month to pay it off. For some, the idea of taking a loan to shop sounds scary, but with Buy now, pay later, that sounds convincing. An online shopper of braided wigs said, and I quote,’ knotless braids are so expensive, but with the Buy now pay later, I can afford one without breaking the bank.
Below is a picture of a knotless braid wig.
Every good thing has its advantages and disadvantages, and it would be an injustice if we don’t talk about them.
Pros Of Buy Now, Pay Later
- A convenient, disciplined way to pay for purchases over time.
- A good credit/high credit score is not necessary to qualify.
- Personal information protection from shady merchants.
- Frequently zero-interest or lower interest than credit cards.
- It doesn’t affect credit scores.
- Fast approval.
Cons Of Buy Now, Pay Later
- Because it’s a new business model, much work needs to perfect the seamless payment process.
- Almost every Buy Now Pay later company has zero to non-customer support.
- Limitation to only western countries such as North America, Europe, and some Oceania countries.
- Although they said a credit check doesn’t take a hit on your credit, that’s a lie because before you get approved, you have to provide an SSN, which indicates that they will conduct a credit check behind the scenes.
- A recurring billing subscription is a nightmare to cancel if shoppers pay with Buy now pay later.
Dealing with a dispute is a big problem. For example, if a shopper made a purchase and didn’t like what they received, they are locked into a payment plan that they have to pay; otherwise, their accounts will get terminated.