{"id":52945,"date":"2022-06-07T16:07:31","date_gmt":"2022-06-07T08:07:31","guid":{"rendered":"http:\/\/wordpress-my-161844363.ap-southeast-1.elb.amazonaws.com\/articles\/?p=52945"},"modified":"2024-02-02T15:46:33","modified_gmt":"2024-02-02T07:46:33","slug":"what-is-bnpl","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/what-is-bnpl","title":{"rendered":"Should You Buy Now, Pay Later?"},"content":{"rendered":"

Buy Now, Pay Later (BNPL) is a payment option\u00a0 has been around for some time and has been <\/span>quickly gaining traction<\/span><\/a> among consumers in recent years.<\/span><\/p>\n

The onset of the COVID-19 pandemic caused a consumer paradigm shift towards online shopping, a change that did wonders for BNPL\u2019s popularity as people began relying more on the internet for purchases. <\/span><\/p>\n

As its name suggests, BNPL allows customers to make a purchase and receive the product immediately but pay for it at a later time, usually over a series of installments.\u00a0<\/span><\/p>\n

But wait a second. Isn\u2019t that just a credit card installment plan? Yes, both payment methods are incredibly similar. However, there are a few key differences between the two.<\/span><\/p>\n

<\/span>BNPL vs credit cards<\/b><\/span><\/h2>\n

While both credit cards and BNPL involve delayed payments, the use of a credit card to pay for purchases only requires you to make the minimum payment due on the card each month. Interest accrues on the remaining amount until you pay it off in full. On top of that, the outstanding balance can be carried indefinitely (while paying a very high interest rate!).<\/span><\/p>\n

On the other hand, BNPL purchases often do not charge interest. However, they do have a fixed schedule for repayment. At the moment, providers in Malaysia allow tenures of up to six months at a time. There are hefty late payment fees that will be added if you do not follow the repayment schedule. If you still fail to pay up despite the late fees imposed, your balance may be sold to a debt collection agency and your credit score could take a hit.<\/span><\/p>\n

For the most part, BNPL is not as widely accepted as credit card installment plans. Despite this, BNPL can still be a rather attractive option when it comes to smaller purchases whilst browsing the web.<\/span><\/p>\n

<\/span>4 things to check before you BNPL<\/b><\/span><\/h2>\n

\u00a0Before committing to a BNPL arrangement, make sure you are clear on all the terms and conditions. Every company does things differently. Some of the most important terms you need to keep an eye out for include:<\/span><\/p>\n