The buy now and pay later apps are trending in 2022, Shoppers are using them to buy both luxury products and daily need items like groceries, medicines etc. The report by Sensor Tower highlights 10 million new installs from Apple and Google Play Store in the first half of 2022. Core Techies, a mobile app development company in India highlights the reasons why buy now pay later mobile is gaining popularity in 2022.
In this blog, we will discuss,
- What is Buy Now Pay Later (BNPL) Mobile Application?
- Who are the real users of BNPL apps?
- Why Buy Now Pay Later mobile apps are Popular in 2022?
- Who should use BNPL mobile apps?
What is Buy Now Pay Later Apps? Find Out
Buy now, pay later is a short-term financing model, that allows users to buy products and gives an option to pay later. Moreover, it charges zero per cent interest rates. These are also referred to as point-of-sale instalment loans. However, it is mostly used while people shop online. There are many popular mobile apps that enable users to use buy now pay later arrangements while purchasing online. For instance, Affirm, Afterpay, Lazypay and Quadpay etc. Therefore, consumers are using BNPL platforms to finance everything from food, and travel tickets to electronic gadgets of their choice. Let us in the comments below, if you have tried any of the BNPL apps in the past.
How do Buy Now Pay Later Platforms Function? Explore!
Want to buy an iPhone14? Buy now, pay later is your go-to solution. Yes, you read it right! People across the globe are using such platforms to get their hands on the things they need and are paying the amount on a future date. There is a mixed opinion on this financing model, though we will deal with it later. Online shopping gained momentum during the COVID-19 pandemic. Hence, online shopping increased and it is when people used buy now pay later platforms to make purchases. Therefore, it is the most popular among Gen Z and millennials today.
Do you want to know how the BNPL arrangements work?
BNPL enables customers to purchase any product or service without making instant payments. However, it allows you to purchase the product you want on a short loan and gives an option to repay it in instalments later. Hence, It helps to save the time and energy of the user and makes it easy for him when compared to taking a loan from traditional channels.
Though every buy now pay later service provider has different programs. But all point-of-sale instalment loans function along the same lines. Come let us together explore how it works. Keep reading!
#Step 1. Make a purchase from an available retailer on the platform, and opt for the buy now pay later option on the checkout window.
#Step 2. If you are found to be eligible, it will permit you to proceed further with a mere click. It will highlight a few options for you to select.
#Step 3. You then, need to either opt for a one-time payment later till a specific date or choose a series of instalments to pay the amount later.
#Step 4. It allows you to use credit, debit cards, bank transfers or UPI options to make the payments on a future date.
Hence, if a user links his debit or credit card, the set instalments will be deducted from his credit or debit card automatically. Therefore, you need to avoid later payments because it affects your credit score.
Why BNPL Mobile Applications are Popular in 2022?
Here are the reasons why buy now, pay later mobile apps are popular in 2022. Find out.
It provides an ease to the users because there are times when you have limited finance in hand and you need to make a purchase. Hence, the buy now and pay later arrangement makes it convenient for the user to buy a product instantly and repay the amount later.
#2. Zero or Low-Interest Rate:
By the time you reach a month-end, you have to limit your spending and buy things using credit cards, isn’t it? However, BNPL mobile apps become the last resort because it enables users to buy products either at zero or low interest rates. Therefore, it helps users to avoid the product at high-interest rates.
#3. Speedy Process
BNPL mobile apps have a fast, efficient loan approval process. It will allow you to make big or small purchases within seconds and save your time and energy. Moreover, you can purchase items from retailers as per your limits.
#4. Repayment Scheme:
It allows users to repay their instalments on a later date with a fine, in case they miss paying the amount on fix date.
Do you know 55% of consumers say, they tend to spend more when they use buy now, pay later mobile apps? Therefore, people who do not have a consistent flow of cash to meet the expenditure should avoid using BNPL options. This is because it will possible your credit score and affect your overall finances. However, on the other hand, if you are disciplined while managing your finances and want to save your time and energy following traditional ways, buy now, pay later is the best for you!
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