Buy Now Pay Later

Point of sale credit is an umbrella term used to describe one of the emerging financial services on offer, ‘buy now, pay later’ (BNPL) products. Buy now, pay later is a way of purchasing something without having to pay the full cost at the time of purchase, instead making smaller payments over a longer period of time, like an instalment plan. There is no interest payable on the repayments like a typical loan, but there are fees involved. It is important to understand all aspects of the BNPL service industry, as this is imperative in deciding whether the service is appropriate to the individual and their personal financial needs and wants. The services are extremely convenient and can be very helpful and appropriate for many individuals, however with this comes with potentially detrimental consequences, should an individual use the services incorrectly, by the unintentional accumulation of BNPL payments that are unable to be serviced or other debt accumulated. There is a responsibility imposed on the user to understand not only the complex terms but also the and potential risk they are signing up for.