BNPL, or buy now pay later, is an emerging new option for buying online as well as store purchases. In BNPL, you buy now and pay later if you don’t have sufficient money or credit, and pay within a week or a month.
Use BNPL with responsibility, providing some facility, but using this beyond the limit, a person can get stuck in a huge debt. Here, we expand on the benefits, risks, and responsibilities. First, we look at the benefits
Benefit
a)Convince-> As the name shows by now pay later anybody can understand it allows consumers to purchase items immediately, it’s a convenient way for consumers to purchase a large amount
b)Interest-> Interest on BNPL is zero, if somebody pays on time, it’s cheaper than a credit card.
c) Managing cash flow-> managing the cash flow of the monthly budget with BNPL can be easily managed if spending a large sum.
d) Instant access-> It provides an immediate buying option without much planning.
Risk
a)Overspending- it can lead to high purchases and overspending, which sometimsometimes agebe to difficult.
b) Debt collection- If debt tracking is not done properly, it can cause big trouble, and huge debt will accumulate..
c)Credit score- In BNPL, if a consumer does not pay their debt on time or delays in payment, their credit score may be affected, resulting in high late fees and interest, which can damage their creditworthiness.
d)Fraud and risk in security-> There is a higher chance of fraud in this system, such as a fake Identity, anyone can steal the data of a consumer and create a fake BNPL account.
Now we understand risk and benefit, both its good service, short-term borrowing, but use it wisely.