‘Buy Now Pay Later’ Option Catches Steam Across Online Portals

By Ravish kumar - March 05, 2018

 ‘Buy Now Pay Later’ Option Catches Steam Across Online Portals

Several e-commerce portals have partnered with fintech companies offering consumers the option to pay later.

Let it be a grocery vendor or a regular kirana store, the idea of maintaining a credit system and settling the amount at the end of the month is gaining traction. However, with the help of technology this concept is becoming formal and gaining popularity on online portals as well.

The ‘buy now pay later’ option has made shopping blissful as it is a reflection of the consumerist society we live in today.  Has it ever happened that you fell in love with a dress, but didn’t have the money to foot the bill? Nevertheless, with ‘buy now pay later’ option, also called credit shopping, you can go ahead and purchase anything which catches your attention.

Several fintechs are offering the customers the option ‘Buy now and Pay later’ on online fashion portals, ticket booking websites, and food ordering gateways.

Interestingly, e-commerce players are giving this option to certain Android users and contemplating to expand it to the whole user base. There are core reasons for the adoption of this portal. A quick payment mode certifies that customers come back for another purchase. Due to technology hiccups, there’s a failure in conversions on transactions.

As reported in moneycontrol.com, Aurko Bhattacharya, co-founder of ePayLater says, “Ours is a cash-driven economy, accounting for at least 68 percent. In the US, it is at 9 percent. On the other hand, US has over 48 percent population using credit cards, against just 3 crore credit cards in India. To get people to move away from cash, you need to give them a fitting alternative which will be frictionless. The company handles about 2,500 transactions a day.  "It also takes care of the trust factor. The user can buy and experience their purchase before paying for it," adds Aurko.

Benefits of ‘Buy Now Pay later’
It makes shopping faster. Several online stores have made ’buy now pay later’ option convenient by allowing online shoppers to choose ‘bill me later’ when they checkout. It is extremely simple to use. We opt for online shopping as most of us lead busy lives. This makes it easy to purchase through computers faster.

At the same time, there is no need to provide account numbers.  This process is incredibly fast as there is no need to fear about giving your account numbers to process the payment.

Today, there are abundant items that you can purchase with credit shopping such as clothing, accessories, bed linen, jewellery, home appliances, home décor items, and furniture. Interestingly, buy now pay later online stores offer innumerable products at the same site. You just need to select the item you want to buy and follow the simple steps and choose bill me later option.

How does it work?

The service providers collaborate with online portals to include a pay later option. The first time users of the service however, are required to create an account which generally requires them to enter their contact details, address, and Government ID.
Once the account is created, a limit is assigned which can then be used to make credit purchases with a single tap at checkout pages of partner merchants. Moreover, customers have the choice of stacking all the bills and settling all of them in one go with a single payout.
All said and done, ‘Buy Now Pay later’ services look promising and it could increase the number of people making digital payments.

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