The advent of online shopping amazed our country. Customers loved the variety and convenience online stores offered.
Within no time, they began facing issues with payment gateways. Online shops too felt the heat. Customers started abandoning their shopping carts in such stores.
At this time came the “cash on delivery” scheme. Consumers were quick to jump into the bandwagon. They loved it because they could buy anything they need without paying for it upfront.
Then came the Government’s attempts to create a cashless economy. This necessitated the need for “cash on delivery” without involving actual money. The dilemma paved way for a new scheme called “buy now, pay later.” The scheme allowed customers to buy something and pay later. Most of the time, it is only after a specified time limit; for instance one week.
This took the industry by storm. Following are seven reasons why the “pay later” scheme is the most preferred among consumers:
1. It provides instant credit
A pay later scheme offers instant credit to customers at the time of buying. They don’t have to roam around the world wide web looking for credit providers. This makes shopping fast and easy.
2. It makes payment faster
In this scheme, customers don’t have to worry either about their credit cards, wallets, or bank accounts. They just have to type an OTP (One Time Password) to pay for the item purchased. Certain merchants even allow offline transactions. Here, the customer just has to scan a QR code to pay. Some also allow UPI (United Payments Interface).
3. It increases customer loyalty
Several factors influence customer loyalty. Traffic generation and conversion are just two to mention. When offering this scheme, you set your business above your competitors. You appear as customer-friendly and adjusting. They in turn reward you with more sales.
4. The scheme offers instant interest-free credit
A “buy now, pay later scheme” not only offers instant credit but also interest-free money. This creates a foundation where the customer can pay within the specified time limit.
5. It is preferred over COD (Cash On Delivery
Here, customers don’t have to worry about handling real money. The product gets delivered to their homes even in their absence.
Tips to remember
Every BNPL scheme is unique. You should read the fine print before making a choice. Here are some helpful tips in this regard:
1. Be informed
Several rules are there to protect consumers from fraud deals. However, most of the schemes don’t fall under the law of the land. If you are concerned about safety, go for a no-cost EMI scheme. This works similarly; the payment is spread out.
2. Pay on time
Make sure that you are paying on time. Negligence here will damage your credit score. Continuous buying will create a vicious cycle of debt and penalties. Coming out of it is going to be a tough job.
As people always say, don’t live beyond your means. However, if done wisely, buy now pay later is the easiest option to protect your wallet.
Download the LazyPay app, get your credit limit and enjoy making those purchases like you never have !!!