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How Does Buy Now Pay Later Work

how-does-buy-now-pay-later-work

"Pay After," sometimes called "Buy Now, Pay Later," is a solution for point-of-sale financing. Retailers that offer a Pay After alternative allow customers to pick a financing program and pay in instalments rather than cover the whole cost upfront. We are providing an example of "Klarna" to give you an idea of how it works.

Klarna shoppers choose their merchandise straight away in the checkout, yet to cover it in following a 30-day interval or at smaller instalments with time. They generally create three or four evenly spaced installments that are taken straight from their charge card. In any event, there are no additional interest or fees to pay, given they cover punctually. Participating merchants pay the supplier 2-6% percent commission and a fixed payment for each transaction.

• "Buy Now Pay Later" payment choices

The specific details vary by state, Pay after Installments to three or four equivalent, interest-free installations, dividing the price of larger purchases to as many as 36 monthly obligations. Interest rates may apply.

• The Pay After checkout encounter

Let us look at the purchase now, pay later expertise from the client's view.

They find something they like and add it to their basket and then click on checkout.' Thus far, it is so ordinary. But here is where things become interesting.

With convenient payment options, including credit/debit card and PayPal, they will visit a 'Pay together with Klarna' alternative. Alongside fields to put in card information, shoppers have been presented with a choice to purchase today, pay after Klarna.

• Pay Following the point of purchase

In a few nations, customers can also order a virtual or physical Klarna card to cover anything, anyplace. This lets them purchase now and pay later, even from retailers who don't typically supply you with this alternative.

Though many Klarna trades are with internet retailers, conventional brick-and-mortar retailers may also provide Klarna payment choices. This usually includes the consumer creating a QR code from the Klarna program, which can be scanned at the purchase point. The merchant receives the charge from Klarna, along the client gets to cover afterward.

Selecting how and if they cover the payment without accruing interest raises spending power and enables clients to ascertain their fiscal program.

Comments

Patty Poet from Suffolk, VA on April 18, 2021:

Interesting. Like the old -fashion lay-away but you get to take the merchandise home immediately.

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