What is it called when you buy something now and pay later?
A buy now, pay later plan (BNPL) is a loan offered to a customer at the point of sale so they can purchase merchandise on credit but without a credit card. Popular options include Shop Pay Installments from Shopify, Affirm, Afterpay, Sezzle, PayPal, and Klarna.
Why do businesses often use the buy now, pay later approach?
Customers are much more likely to return to businesses that offer buy now pay later options. You still get paid in full, immediately, making it a win-win situation for both consumers and businesses.
Can I use buy now, pay later for my business?
As a business owner, BNPL makes things easier for your customers and can increase your bottom line. With BNPL, you can offer your customers a simple way to make payments on purchases, while ensuring you receive the full amount immediately.
Is buy now, pay later a good idea?
If you're struggling to pay your bills or start an emergency fund, steer clear of buy now, pay later. Because of its convenience, it's easy to overspend with BNPL. If that happens, you may incur high fees or be sent to collections, which will hurt your credit score. Zero-interest plans available.