BNPL Services, also known as Buy Now, Pay Later services, have gained tremendous popularity in recent years. These services are essentially a payment model that allows customers to purchase goods and services either online or in-store and pay for them in installments over an extended period rather than making an upfront payment. This payment model has revolutionized the way we shop, as many are now opting for BNPL services over traditional credit cards and other payment methods.
If you are new to BNPL services and want to know more, this comprehensive guide will explain everything you need to know, including the meaning of BNPL, how it works, the advantages and disadvantages of using such services, and which institutions are offering such services.
What is BNPL?
BNPL means that customers can purchase goods and services and pay for them over a set period, typically ranging from 2 weeks to 12 months, in installments rather than paying the full amount upfront. This payment method allows consumers to spread the cost of their purchase over an extended duration without incurring interest charges. Instead, BNPL service providers such as Afterpay and Klarna charge merchants a fee for using their services.
How Does BNPL Work?
BNPL services are easy to use. Customers can choose to make a purchase through a BNPL service provider either online or in-store and select the pay later option at the checkout. The payment service provider pays the merchant for the customer’s purchase, and the customer repays the installment payments over a set period.
Advantages and Disadvantages of BNPL
Advantages:
- Easy to Use – BNPL services are straightforward to use, with a simple, easy to navigate payment system. Customers can make purchases online or in-store, and the payment options are the same across all platforms.
- No Interest Charges – Unlike traditional credit cards, BNPL services do not charge customers any interest fees. This is a significant advantage as customers can borrow money without incurring interest charges.
- Flexibility – Customers can opt to pay for their purchases over an extended period, making it easier for them to manage their finances. In addition, they can choose to spread the payments over a period that suits their finances.
Disadvantages:
- Debt Accumulation – BNPL services can lead to debt accumulation, particularly for those who are not financially disciplined. Since the amount is broken down into smaller payments, it can be tempting to make more purchases than one can afford.
- Late Payment Fees – Late payments can cause additional charges, which can add up over time. This is especially true for those who forget to make their payments or miss them completely.
- Effect on Credit Score – While BNPL services do not have an impact on your credit score, some providers may conduct a credit check before giving you access to their services. Therefore, it is essential to read the terms and conditions carefully before opting for a BNPL service.
Which Institutions Are Offering BNPL Services?
Several leading financial institutions and payment service providers offer BNPL services. Here are some of the popular service providers in the market today:
- Afterpay – Afterpay is one of the leading BNPL payment service providers available today. It allows consumers to purchase goods and services, breaking down the payment into four installments over a set period.
- Klarna – Klarna is another popular BNPL service provider available in the market today. Like Afterpay, it also allows customers to break down the payment into installments over a set period.
- Bajaj Finance – Bajaj Finance is one of the leading providers of BNPL services in India. The company offers customers flexible payment options and has recently launched a feature that allows them to change their registered mobile number with ease.
Changing Your Registered Mobile Number on Bajaj Finance
If you are an existing customer of Bajaj Finance and need to change your registered mobile number, the following steps will guide you on how to do it.
- Visit the Bajaj Finance official website
- Go to the Bajaj Finance login page and enter your login details
- Once you are logged in, click on your profile icon
- Select the option to update your mobile number
- Enter your new mobile number and verify it
- Once verified, your mobile number will be updated in the Bajaj Finance system
Conclusion
BNPL services have revolutionized the way we shop, and many are now opting for such payment methods over traditional options like credit cards. While there are several advantages to BNPL services, such as flexibility and no interest charges, they do have some disadvantages, including the potential for debt accumulation and late payment fees. It is essential to read the terms and conditions carefully before opting for a BNPL service. Several institutions offer BNPL services today, and Bajaj Finance is one of the leading providers in India, offering flexible payment options to its customers.
