6 Reasons Why 'Buy Now Pay Later' Is The Right Choice For Credit Shopping

Posted by amrina alshaikh on November 22nd, 2020

During the initial boom of online shopping, customers in India were awestruck at the convenience and the range of choices is provided. However, issues relating to payment gateways began to increase and the cart abandonment rate reached drastic levels.

Keeping in tune with the government's initiatives to make the economy cashless, Buy Now Pay later was introduced, which permitted the consumers to purchase online and make payments later and that too not immediately, but after a certain time period. Here is why Shop Now, Pay Later option has become an instant hit among customers.

1. Interest-Free Credit

It not only offers a small line of credit but also acts as a micro-finance mechanism. Business owners can avail of interest-free money for a few days. The e-commerce business is greatly benefited by the Buy Now Pay Later option's convenience, credit, and cashless features.

2. No Upfront payments

It gives the opportunity to the customer to test the product first and then make the payments. Unlike internet banking or card payments, where the payment needs to be completed upfront, this Buy Now Pay Later option offers flexibility in sampling the product before proceeding with the payment. The allowed time period is up to a period of 15 days from the actual transaction date.

3. Clubbing payments and bills

This payment mode helps in consolidating various transactions done by the customer in a span of a few days. Instead of furnishing bank details for every single transaction, the clients can opt for Buy Now Pay Later at final checkout and club them all to make a single payment.

4. Adequate Limits for handling monthly expenses

Shop Now Pay Later account offers a credit limit which is predetermined by the bank, taking into account the customer's credit history and eligibility conditions. Based on how the credit limit is used, the bank can reduce, renew or increase your credit limit. The bank carefully calibrates this credit limit range to ensure that individuals can conveniently handle monthly expenses, especially the emergency ones.

5. It provides Your Customers with Greater Choice

Shop Now Pay Later programs to offer customers superior choices over how and when they purchase products. If the customer wants to make an instant buy but can't afford it until the next payday, these programs are a lifesaver. As a result, businesses can make more sales and make their customers happy.

6. Processing Fee is reduced

Credit card processing fees are enormous, depending on the company's sales volumes. It's very difficult to plan for unexpected expenses, which makes budgeting harder.

Show Now Pay Later programs to decrease these inconveniences by using technology in automating payments. As a result, there is no effect on the processing fee charged by the business owner.

Key Takeaway

Business owners can improve brand image by offering more choice and greater comfort in payment methods. Buy Now Pay Later options to deliver a unique cutting-edge experience to the younger generation.

You can now download Lazypay App from Google Play Store and Apple Store.