Buy now and pay later is the core of all installment payments, that’s right. However, behind this way of doing business, there are significant differences between both sides of the counter, both physical and virtual, as evidenced by the billions of dollars that have already been traded in this way around the world.
However, the BNPL among us is still in its infancy, although it is full of characteristics that are highly prized among Brazilians, such as sufficient speed and practicality to anticipate the fulfillment of dreams that are often futile, if only paid in cash.
But wasn’t that always the key word, from store books to credit cards and the like? Here’s the thing: Buying now and paying later is more than delaying money from someone’s account or pocket.
For an interest-free payment, which takes place between 30 days and 12 months, credit information is checked in real time – without checking documents, financial history and income – and the person pays on the spot a maximum of 25% of the total purchase, without interest until it is discharged.
The technological arm of all this is artificial intelligence, thanks to the well-known property of collecting and traversing a large amount of information, which, when processed manually, would be time-consuming and without much accuracy.
But, similar to what happened with other modalities, it is very important to pay BNPL installments on their due dates, under penalty of interest and fees included up to the time of settlement.
In the area of ​​differences, another notable thing is the fact that the borrower does not necessarily have to be a customer of a financial institution or credit card operator, which opens up another possibility for the inclusion of the so-called unbanked.
For shop owners? Well, they have the advantage of seeing the number of abandoned gigs drop dramatically, both physical and e-commerce, bringing down business with enough conditions to move forward without problems.
Strong evidence of this was found in research conducted in the UK showing that nearly 10 million consumers have already stopped shopping at establishments without a BNPL at checkout.
Not to mention the non-capitalization of the merchant by postponing the receipt of sales made in this way, they can receive the full amount the next day of the transaction, usually mediated by fintech companies, for example.
In short, being a win-win is yet another BNPL brand, making it a mechanism designed to deliver significant growth in our country, especially at this time of much-needed economic recovery.
