Is Buy Now, Pay Later (BNPL) the real deal or just a splurge-y flirt? Let’s dive in.
Today’s customers are freer and more impulsive than ever. Hindi sa nag-ja-judge kami because we get it: Inflation is real. The world’s a mess. The apocalypse is near. Kung hindi ka magiging masaya ngayon, eh kailan pa?
Nowadays, it’s all about spending more and pursuing passions. Young adults are buying things believing they’re healing and nurturing their inner child. Some even actively choose to spend away their life savings, throwing all financial caution to the wind.
Nakaka-relate ka ba?
In this challenging time, pagod ka na rin sigurong mag-play safe. Ready ka na to take risks, which is probably an epiphany you had at the height of the pandemic. Whether that means traveling to your dream destination, pursuing that expensive hobby, or finally getting that long overdue lifestyle glow-up — whatever it is, you’ve decided that you gotta make a move!
Indulgence via Buy Now, Pay Later
As the Gen Zs say, ✨ Delulu is the solulu ✨
You’ve perhaps stepped out of the house with no money in your pocket or a cent in your account and still get the latest Android or Apple smartphone by just using a credit card. BNPL works in a similar fashion, except they are not credit cards. They offer little to no interest fees charged. With services like Shopee’s SPayLater, Lazada’s LazPayLater, and PayPal’s Pay in 4, consumers can make purchases and spread payments over time.
In short, abot-kaya at instant siya as long as ‘di kailangan isang bagsakan ang bayaran.
While it may seem like a convenient way to afford things, worth it nga ba?
The appeal of Buy Now, Pay Later
Buy Now, Pay Later is like the ultimate shopping hack that works for everyone. It’s all about instant gratification without dropping all your cash at once. And if you’re keeping a budget, you can definitely use it to your advantage! You can split payments into small installments without stressing over your bank balance.
What’s more, Buy Now, Pay Later have fixed interest rates and clear terms that can vary widely, depending on the service. But compared to credit cards, BNPL is more flexible — it lets you choose your repayment dates and terms. Usually, a four-week repayment plan doesn't come with any interest charges, but when it comes to loans that last for a longer period, there may be interest fees involved.
Nowadays, it’s all about spending more and pursuing passions.
The dark side of Buy Now, Pay Later
While it can be your spending partner in crime, Buy Now, Pay Later has a sneaky side: it lures you into overspending! It’s the gateway to impulse buys, and when the bill arrives, it can feel like a shopping hangover. At pag nakalimutan mo magbayad ng kahit isang beses, late fees at interest charges na ang sasalubong sa’yo, turning that budget-friendly deal into a budget-buster in no time.
Like credit cards, Buy Now, Pay Later also requires some TLC. Alagaan mo ‘yan and commit to your payments!
With services like Shopee’s SPayLater, Lazada’s LazPayLater, and PayPal’s Pay in 4, consumers can make purchases and spread payments over time.
What they don’t tell you is that some BNPL services might spill the beans to credit bureaus when you miss payments, which could cast a shadow on your dreams of that perfect home or car in the future.
The final verdict
In the end, opting for Buy Now, Pay Later can be a pragmatic and attractive means of securing both your necessities and indulgences.
It offers everyone a myriad of benefits, even extending its accessibility to those who have less-than-ideal credit histories, as many providers do not require a hard credit check to qualify you.
It really all comes down to how you handle your finances. BNPL provides repayment terms over a lengthier period, typically from several months to a year, giving your budget enough room to breathe.