Buy now pay later services are slowly picking up in Australia. More and more businesses, especially retailers, e-commerce, and small businesses have started using BNPL due to the convenience it offers to them.
Although, BNPL providers have witnessed increased losses due to bad loans and non-repayments, still the overall scenario is highly positive for users and providers both. A large number of people are cutting down on purchases on credit cards in favor of BNPL due to high interest rates charged by credit card companies on their balance amounts.
Working system of buy now pay later system
BNPL works on the similar system like credit cards where you get the material after swapping your credit card, while you make the payments to the retailer in small and convenient installments. However, a small difference lies in the operational system. Here, instead of a retailer offering credit on your purchases, a third party BNPL provider offers you the credit facility while the retailer gets his entire amount at the time of transaction.
Once you use your BNPL facility, you can spread your purchase amount over a larger period of time without having to any interest over the purchase amount.
What does retailer get from the system?
Once you approve buy now pay later system at your retail store, you are required to pay a certain commission on total card sales to the buy now pay later provider. A big advantage of the facility is that you significantly improve your sales volumes at the cost of a meager percentage of commission to the provider.
Your commission to the service provider is significantly covered by lower purchase price that you get as a result of bulk buying from your suppliers.
Since the cost of operations remain the same, increased volumes can significantly increase your net profit from operations. As a retailer you get full amount of your sales from the third party BNPL service provider immediately.
Benefits to the buy now pay later service provider
One of the main benefits to the provider of buy now and pay later services provider is the volume of transactions from retail consumers. Each consumer offers a certain amount of profit to the service provider in terms of commission that the provider receives from the retailer.
The catch in the entire working system is often the interest or late fee charged by buy now pay later service providers from you if you default on payment at the stipulated time. Heavy fine or interest is charged by most providers from consumers to restrict payment defaults.
How to access buy now pay later service?
You can access buy now pay later service at practically each and every convenience store. Since most BNPL services are third party providers, these services are available at all stores that accept credit cards.
All you need to do is to sign up with a provider online or at store. Usually, you get on spot approval.
Buy what you want. While some stores work only with partnered providers, most stores that accept credit cards will accept the service.
Pay back for what you have purchased through regular installments. The amount will be automatically deducted from your nominated card. You only have to ensure that you account has the due amount in place on the day.
If you are looking for a buy now pay later service provider in Australia, just visit Apickle for the service. They are one of the top companies that offer buy now pay later services in Australia.