Finance has seen several trends over the years, and the changes are a new normal for this industry. With a huge number of people looking for convenient payment options, it becomes the need of the hour to change the traditional methods of finance and replace them with something better.
Is there any such method that can significantly change the finance option?
Yes! One extremely useful innovation is Fintech.
Fintech has made its place in this 21st century and is rapidly taking its place in many finance trends. A lot of startups are now moving towards this technology. One prominent change that this technology brought along with it was Buy Now Pay Later. This trend was initially developed for e-commerce, but now is taking its place in daily credits.
It might seem a lot to digest in just a few lines, so let us take a look at the approach in detail to understand the pith of the overall discussion.
What is Fintech?
Fintech is a word that is formed from financial technology. It is a technology that was described to automate finance services. It consists of various algorithms and software that are used by several companies and industries to help proliferate finance and carry out them with efficiency.
Fintech also introduced the concept of cryptocurrencies and bitcoins for transactions. Fintech includes various activities like money transfers, deposits, withdrawal, managing investment, raising money for business, and all the other stuff through mobile or any online platform.
Amidst the various trends that fintech has introduced a prominent trend that came forward in the 21st century is Buy Now Pay Later, options. This trend has seen significant growth in both commercial and day to day banking. Customers always look for easy payment methods and this particular feature has been home to many people.
Such innovation has seen a lot of demand. So, let us take a brief look at all the different options that it provides.
What Is The BNPL Trend?
BNPL or Buy Now Pay Later is a method in which the retailers or sellers offer quick loans to their customers according to their requirements. In this, the customers would not be required to spend days working on certain transactions to get the money. It is a one-click method, with minimum risks involved.
The service can be undertaken by any individual with any type of credit history. The requirement of credit history is none and the interest rate associated with them is almost negligible. This flexibility in payment methods has made it one of the most appreciated and availed finance options in the modern era.
The method was initially developed for high end proving options like furniture and electronics that would initially cost a lot. But with Fintech the adoption of this service Is made available in everyday life as well. It can be availed today even for grocery services and any services up to $35.
The BNPL Trend Growth.
BNPL has seen significant growth. Youngsters as well as low-income holders have benefited a lot from this service. The last decade saw about a 7% increase in installment payment methods during the purchase of daily goods. In recent years the trend has been spread to over 38% of consumers.
Retailers have been keener on this trend due to ease of transactions and increased sales methods. Over 55000 retailers have adapted to this method and are looking forward to a seamless transaction. The finance trend has been particularly hyped by GenZ people as it suits their ever busy and no time life.
Even though the trend has a huge success full date, it is yet to come to its full potential. There are still hesitations that come in the way of quick money. Consumers think there are easier ways to carry out transactions, even though the risks are negligible.
Why & Who Should You Opt For A BNPL?
Even though the method seems a little haywire as compared to traditional methods it is still quite useful. The entire aim of this fun tech system was to take finance on the net and it successfully has taken that step. From its adoption, it has brought several benefits that are worth trying. They are also beneficial in certain criteria. Let us take a look at why and who can opt for BNPL.
● Fintech has worked upon proliferating the stage of mobile apps and their interface giving users relatively easier access to services. This has made them interact easily with the services and also has given a lot of ease for various methods of payments.
● Any user would not be required to have a credit history for availing of the services. The transactions are done with real-time customers and opt for a relatively easier transaction. This does not ask the user for any kind of credit history or a score. So many people who do not have a good credit history or do not have an overall history can also avail of the service.
● Youngsters prefer transactions through debit cards rather than any other form. Due to this BNPL gives them ease for money flexibility and they can easily opt for payment methods as well. Hence, a BNPL can be useful if you do not want to go for any credit cards as such.
● If you want to build a credit score for other financial services then also you can opt for this particular fintech solution. The method does not ask if your credit score does not help you build one, or also does not adversely affect the score if you miss on some payments as such.
How Is It Evolving?
BNPL was developed for high-end purchases but now has started with going for small businesses as well. Apart from it, fintech startups who are working on this very service are now planning on creating communities that can specifically contribute to this service. Merchants or simple buyers can both avail of this function of the startup. The community will be embedded with lenders as well as buyers, this will give people more choices at the checkout points and also at normal window shopping.
Fintech has thus changed the way finance was perceived some years ago. It is ever-changing and bridging finance to the doorsteps of people. It is as easy as the click of a button. BNPL was the most effective transformation made by them. Still the marketing and finance industry remains unpredictable. Money trends change so do the minds of people, and it becomes hard to tell which technology can work.
In the end, BNPL has currently shown a huge increase in the market and is likely a finance technology that is here to stay.