>>>

Buy Now, Pay

Later: Good or
Bad?

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 >>>
The latest financial model where you can

'Buy Now' and 'Pay Later' is set to

become the fastest growing online

payment method from a 3% share in

2020 to a 9% share in 2024!

But, good things often come with a

hidden cost. What is it?

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 >>>
Say you have added some cool items

to your Amazon cart, but you cannot

afford to pay for them.

Now, Amazon cannot lose a potential

customer in you. So they introduce a

BNPL facility that can be set up within

60 seconds.

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 >>>
Duh! Isn’t it like a credit card?

30 million people in
For starters, only

India use credit cards. The approval

rate for credit cards is very low.

But, BNPL just requires a few minutes to

set up.

So easy availability

of loans make

BNPL popular?

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 >>>
The interest on credit cards are as high

as 36% per annum. But charges for BNPL

are almost negligible.

How will the fintech companies even

earn? What if the customer vanishes

without making payments?

They must be too selfless to assume

that kind of risk, no?

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 >>>
You wish! We all know what easy money

does to humans.

When you don’t have to pay now you give

in to the temptation to buy things that

you wouldn't even think of buying if you

were to shell out the money outright.

revenue
In this lies the

model of BNPL...

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 >>>
They persuade the merchants (the

ultimate seller whose goodies the

consumer is buying) to give them a cut in

exchange for increasing their sales.

By including more and more people who

have had no prior exposure in the credit

ecosystem, they expand the size of the

pie!

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 >>>
Owing to the beauty of this model,

the value of transactions done using

BNPL is expected to rise to $52.83

billion by 2028, up from the current
value of $6.99 billion in 2020!

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 >>>
BNPL can both be a friend and an

enemy to you. This tool definitely makes

your life easier and you can plan your

finances better.

But, beware readers!

It can also drag you in the

hole of temptations...

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...and can rob you of the money that
you would have otherwise saved.

It’s a battle between your financial

goals and irrational exuberances.

You must take charge.

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