Connect with us

Hi, what are you looking for?


You Should Read Once Before Using the Pay Later Option

Buy Now Pay Later
Buy Now Pay Later

We have seen a significant drop in cash transactions due to the norms of the COVID-19 pandemic, and other payment options like e-wallet, UPI, and net banking have become the new normal. During the same time, Buy Now Pay Later has become an emerging credit facility among consumers, giving them instant access to loans to make purchases. 

Pay later options are to cater to consumer needs by offering them access to buy products of their choice when there are insufficient funds. Consumers can buy products, have them delivered to their doorstep and decide to pay at a later date. 

It offers a convenient and seamless way to access credit, using a PoS swipe machine. Consumers can buy new furniture for their new house or buy holiday gifts for their loved ones without worrying about money upfront. 

Advantages of Buy Now Pay Later 

  • Instant credit facility 

The best part about pay later options is that you can get instant access to credit at the point of sale using a PoS Terminal machine that has a BNPL facility. It also ensures a smooth and frictionless purchase. 

  • Easy to use 

BNPL platforms such as PoS swipe machines support a QR code option. You can seamlessly scan the code to make a payment. You can also choose to complete transactions through UPI. 

  • Safe and Secure

Pay later options also aid in making secure payments without entering a 16-digit card number, adding your bank account details, or paying with an e-wallet. An OTP generated and sent to the registered mobile is needed to proceed. 

Things to before using pay later option

It may be enticing to buy your favorite products in interest-free installments. However, any form of debt is always a bad debt, and there are downsides with Pay Later options. You can opt for it to meet short-term needs as long as you can pay back in time, but the problem starts when you make a late payment. 

Here is everything to know before signing up for BNPL:

  • Significant penalties due to late payment

You can access interest-free credit while making Buy Now Pay Later purchases with a PoS terminal machine. However, interest-free doesn’t mean free. You still have to bear significant penalties for late payments. 

There are high chances of getting into a debt trap due to late payment fees and monthly interest on outstanding amounts that are usually between 1.5% to 3%. 

  • No boost in your credit score 

Even if you responsibly repay the full amount along with late payment penalties, there will be no boost in your credit score. Borrowers usually ignore the terms and conditions of these interest-free models. 

A PoS terminal machine offers the platform to access instant credit but these platforms fail to reveal that delays in payments are reported to CIBIL and can, therefore, impact your credit score.

  • You may end up paying more 

Smaller payments with no interest sound tempting, it can lead to impulse buying and overspending, and the inability to pay back in time can put you in a debt trap. It is wise to make small payments that can be made upfront rather than choosing to avail of a credit facility that can cost you more with late payment fees. 

Before opting for Buy Now Pay Later transaction through the PoS Swipe machine, always read the terms and conditions of the credit facility to avoid complications. As a borrower, you should be aware of specific deals, the cost of credit, and the payment terms. You should also factor in your financial circumstances before purchasing something on credit as it is always subject to change in the future. 

In conclusion, Buy Now Pay Later can be useful if you don’t have a credit card, and it is an appealing proposition for consumers, but the fact is, it is still a debt. It is vital to avoid getting carried away. Always read payment terms and conditions, and factor in your financial stand and credit obligations before using BNPL. 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat.


Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.


Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.


Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae.