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The banking industry has undergone considerable transformations over the past 10 years. Especially as banking has become increasingly integrated into consumers' daily lives through eCommerce and now with the BNPL function.
I'm sure you have noticed that while shopping on the Internet you have come across some buttons inside the web page that said: "...", "..." or "...".Buy now and pay later", "Buy now, pay in 30 days", "Pay in 3 interest-free installments"...
If you want to know what Buy Now Pay Later (BNPL) is, how it works, if it is profitable or if it is safe, don't miss this post!
► You may be interested in: BNPL. The trend coming from the USA and will force the incorporation of AI in the process.
Buy Now Pay Later is nothing more than deferred payments, an available payment method that online stores are starting to offer. This option is currently offered by major brands and is integrated as an alternative to bank transfers, card payments or expensive cash on delivery payments.
Currently, the 43% of Spaniards already opt for 'Buy Now Pay Later' payment trend' and it is clear that it is the fastest growing payment trend at the moment.
BNPL services give consumers some leverage by offering them credit at the point of sale; rather than paying the full amount all at once.
Thanks to this method, users are more receptive as they can pay for their purchases over a longer term. In addition, the fact that most BNPL service providers do not charge interest makes this financial instrument more attractive than other payment methods (credit cards, transfers, cash on delivery...) that suffer from a negative consumer experience.
The way BNPL works is very simple. The customer buys a product, completes his order, receives it at home, can try it to consider if it really interests him and once he has decided, pay for it (normally he has 30 days to pay for his order at no additional cost or he can split the payment in installments).
The biggest benefit of the BNPL option is that you don't spend the money right away, you can pay for the purchases later, for example, after purchasing the product. And all this without having to get into debt with family, friends or borrowing from the bank.
Deferred payments are above all secure. All transactions are encrypted and confirmed with SMS codes. Therefore, you do not have to enter any account or card number, or log in to your bank. In addition, you are always covered by the buyer protection guarantee.
However, for companies that offer BNPL services, they usually have intelligent user onboarding processes that integrate artificial intelligence to suppress the use of stolen information, identity proofing, monitoring account lifecycles or, more generally, transactions for anomalous activity to detect and block malicious intent by humans and bots.
Deferred payments are perfect when you need to make different purchases and don't want to wait until the next month or, for example, if you don't have much savings in your account and need to maintain your financial liquidity.
The option "buy now, pay later"is also great when you buy products that need to be checked for quality and you are not sure when you bought them. Thanks to deferred payments in case of returns, your funds will not be frozen and you don't have to wait for the seller to pay you back later.
We adapt our solutions to the new BNPL payment model: from the generation and interest on the purchase, to the approval of the financing with maximum security and speed. Data interfaces with the main players: banks, finance companies, marketplaces and merchants, allowing for a adaptive onboarding to facilitate conversion, while securing transactions.
BNPL payments are revolutionizing the eCommerce sector. Not only are they secure and convenient, but more importantly, they allow you to shop smart and manage your budget wisely.
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