This method allows you to divide the payment of a product without interest and obtaining it immediately
Jack Dorsey’s digital payments company Square just bought Afterpay for $ 24.38 billion
In recent years email list bangladesh, the services or solutions known as “buy now, pay later” (“Buy Now, Pay Later”) have been gaining ground in retail as a softer payment option, in which both customers and suppliers find satisfaction. This has multiplied the value and interest of companies that offer these types of services, such as Afterpay, an Australian company that pioneered this model and has just been acquired by Square, the digital payments firm created by Jack Dorsey, Founder and CEO of Twitter The operation has been valued at 24,380 million euros, an amount that shows the rise of these services.
The merchant has to pay a commission to the provider for every trade he completes
But Afterpay is only one competitor in a race in which Klarna, Affirm, Laybuy, Quadpay participate as firms specialized in this modality, which have been joined by others such as PayPal, Citibank, American Express or Visa, which have launched their own payment solutions. “Buy now, pay later”, which from now on we will call BNPL, for its acronym in English,
As the name implies, the BNPL system allows buyers to get hold of a product online without having to pay for it instantly. Unlike conventional financing programs, “buy now, pay later” payment models allow the product to be shipped right after the purchase is made and the customer does not have to wait to pay the full amount. Another important issue in this type of payment has no interest for short-term financing.
These are the advantages on the consumer side, but the BNPL is also appreciated by the sellers, who receive the full payment in advance, although they must pay a commission to the service provider that can be up to 8%. Some firms that are dedicated to this activity have flat rates available to facilitate transactions. All these characteristics have resulted in the growth of users and companies that adopt this service as a form of payment in a context where the search for liquidity has increased due to the pandemic.
In this way, consumers pay for goods and services through installments over a period of time, relieving financial pressure and conserving their capacity to consume. Regarding payment periods, there is flexibility in the schemes proposed by BNPL providers, with periods ranging from 30 days to 12 months. These companies are finding their most important market niches among millennials – 54% use these solutions in the markets with the most implantation – and retail establishments, but high-volume companies such as Gap or Walmart have introduced this deferred payment system socialposts.