In the past few years, Australian merchants and businesses have witnessed massive upward growth in credit options for buyers i.e. consumers through Buy Now Pay Later (BNPL) schemes that have shown their positive effects on buying capacity of consumers.
Buy now pay later credit options have proved boon for not only for larger but also smaller businesses as well.
What is meant by ‘buy now pay later’ credit option?
BNPL is one of the most widely used credit option that facilitates option customers to buy desired products directly and payoff the cost in fortnightly or monthly instalments over a period of time without any additional interest.
Buy now pay later (BNPL) is primarily a service that has marked similarities with previously existed lay-by system in which your product used to be kept aside and given to you once you pay two or more instalments. But with the arrival of buy now pay later services in Australia you can take away your product directly through online or in-store purchases.
The buy now pay later services in Australia involve a provider that pays for the goods upfront to the retailer that enables consumers or buyers to take their purchases home without paying cost of goods. Through this innovative payment option the retailer receives the full payment upfront from the BNPL service provider after deducting the transaction fees.
The payment of the goods purchased is then paid in instalments by the customers to the buy now pay later services provider instead of the retailer as per mutually agreed repayment schedule and continues to send instalments to the BNPL service provider till repayment process is complete.
However, the retailer is allowed the access to a web portal or app where the status of BNPL sales can be checked anytime.
How does buy now pay later work system work?
Buy now pay later services in Australia are being provided by many retailers as yet another offered at certain retailers as another mode of making payment.
Primarily, this service is being used in Australia as an alternative option to buying with cash, a debit / credit card or a PayPal account.
In order to avail buy now pay later services in Australia, the customer is required to obtain a purchase code which can be applied through provider’s website or provider’s app. The customer will then log into his/her account during an online transaction or generate and display a purchase code via the app in the store.
First time users of buy now pay later services in Australia, can also set up an account at retailer’s outlet and wait for the approval for the approval from BNPL service provider which usually take some time while provider verifies details submitted by the customer.
Why consumers choose BNPL services?
Buy now pay later services in Australia, are preferred by consumers as they find it:
- Flexibility of repayment
- No additional interest on Instalments barring fee for late payments
- Help monthly finance management- align instalments with their monthly salary
Should you need to avail buy now pay later services in Australia, you may rely completely on best services offered by highly ranked Apickle– business lending experts in Australia.