After the pandemic, Buy Now Pay Later (BNPL) has emerged as one of the most common and well-liked consumer finance options. The statistics illustrate that, according to a recent Juniper Research report, there will be more than 900 million BNPL users worldwide by 2027, up from 360 million in 2022. What are the major factors that the BNPL lending system attracts so many customers?
We’ll go through 4 main advantages of BNPL consumer financing:
1. No Interest Fees
The absence of interest fees is the first alluring feature of BNPL lending. When a customer uses BNPL, they receive a payment plan upfront that allows them to divide their payments and pay over time. Only if the payment is not made on time or is made late does the financing platform charge the customer penalty fees. If the buyer pays by the payment plan, there are no interest fees. This has emerged as one of the key factors encouraging customers to start using both online and in-store BNPL.
Consumers may find it hard to believe, however the financing platforms like ChargeAfter benefit from only the retailers and merchants, who are paying fees so they can have the benefit of using lending platforms on their websites and in their local stores.
2. Multi-Lender Platform
Because BNPL can provide better and more comfortable services, customers prefer it over traditional services. The availability of multi-lender platforms by the industry’s top lenders is the second major advantage of BNPL. The majority of applications can easily receive buy now pay later guaranteed approval thanks to ChargeAfter’s multi-lending system.
What does that imply then? Since not all lenders are willing to extend credit to everyone, ChargeAfter developed the waterfall financing method, which matches the application with the most appropriate lender. The consumer’s application is therefore reviewed by each lender on the platform until the system matches the consumer with the most appropriate lender, allowing them to take advantage of the best services available to them.
3. Easy repayment structure
Additionally, BNPL lending provides many convenient and easy ways to make payments. The repayment plan is typically divided into four or more installments, allowing clients to match them to their paycheck or another source of income and repay their loan without incurring any costs. Customers favor BNPL services over banking products, which set repayment fees for each payment.
4. Quick approval
Consumers favor ChargeAfter’s financing platform because of how swift the process is. As was already noted, the multi-lender method makes it possible to connect applicants with lenders in a matter of seconds. In addition, customers don’t need to fill out the application more than once. It is also available on ChargeAfter’s customizable BNPL white label services, which are linked to our multi-lender structure. In both circumstances, the approval is rapid and provides a wonderful experience.
To sum up, we can conclude that ChargeAfter’s financial platform supports all of the advantages of BNPL lending. It enables the platform to offer the finest services possible to both customers and merchants.