One of the latest trends in retail transactions is the so-called Buy Now, Pay Later or buy now, pay later (BNPL) that now also begins to operate in the country from the hand of a Cordoba fintech.
This option that meets the online expectations of millennials it was driven globally by the limitations imposed by the pandemic.
Thus, consumers They can purchase goods or services on the Internet, but instead of making an immediate disbursement, the purchase is distributed in fixed monthly installments and the business receives all the money on the spot.
The way this model works is not just a financing method for young people but a more accessible form of payment.
The system is integrated within the sales page of the business or individuals can take advantage of it through the use of a QR code.
The system is integrated within the sales page of the business or individuals can take advantage of it through the use of a QR code.
This modality is present in different parts of the world with the help of a large number of fintech companies (such as the North American Affirm, PayPal, the German Sezzle or the Swedish Klarna) that specifically focus on the BNPL financing market.
At a local level, the Cordoba fintech appears in Argentina Wibond that brings this innovative system to the local market that allows you to divide the total purchase into installments or pay the total within 30 days.
“Wibond is a digital payment method that allows users to buy in installments without using credit cards or being attached to a bank. It is a solution that requires a lot of technology and knowledge; but our objective is clear, we take something very complex and simplify it so that both businesses and consumers can have access to this tool “, explains Marco Novaira Business Developer from Wibond.
The new system Buy now, pay later that revolutionizes online commerce. Photo Bloomberg
Youth and shopping
Studies have shown that these payment options are the majority among the youngest and lowest-income population. In the United States, it is estimated that 80% of consumers who opt for a deferred online payment are between 19 and 34 years old.
Monetization It goes through the collection of a percentage to the shops that is not usually very high and is even convenient compared to the expenses which proposes the use of cards.
The greatest benefit for businesses is being able to expand their payment options, thus attracting more audience.
While the benefit of customers is first and foremost be able to access a purchase in installments even without having credit cards or being banked and on the other hand, the possibility of paying in installments without extra costs.
The success of these new fintech companies is in the revaluation that they were able to make of the user, since they place it at the center of the experience.
They got the idea that young people were tired of dealing with hidden fees and cumbersome paperwork, while noticed that what you need is a simple, fast and frictionless shopping experience.
“Today it is very expensive for companies to sell with credit cards, but at the same time customers need an option since there are products or services that are perhaps expensive and are complicated in a single payment. We offer this tool that facilitates the realization for both parties ”explains Novaira.
The financial culture is changing and will depend on the adaptation that the market manages to have, which is really directed towards a place of innovation that achieves greater financial inclusion.
Side B
Criticisms of this system have not been long in coming. Some experts have already stated that these new ways of conceiving purchases could cause very negative effects, especially among adolescents, promoting excessive consumerism.
This concept could be a way to legitimize the youth sector as a consumer and encourage people to owe themselves unnecessarily; a renewed “bread for today, hunger for tomorrow”.
In addition, many point out that abusive interest is charged for late installments and that the credit history of their users is not verified, and that, nevertheless, they reserve the right to report the delinquency of their clients to the credit agencies.
SL
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source https://pledgetimes.com/an-app-is-launched-to-pay-in-installments-without-a-credit-card-in-argentina/
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