Have you ever heard of the term BNPL aka buy now, pay later? Actually, this one term refers to payment service which is often known as a paylater. So, what is the paylater feature and how does it work? Let’s find out through the following review!

 

Paylater Features, Flexible Payment Solution

 

The paylater feature is a payment option that makes it easier for your customers to buy the products they want without paying directly. So, your customers can pay their purchase bill based on a predetermined time period.

 

The paylater feature itself can be used both in physical stores and online stores. So, don’t be surprised if you can find many shops that offer this service when you are traveling to a shopping center. Likewise, the paylater option is available as an option when you are checkout a shopping cart at the online store.

[Also Read: 5 Steps Millennials Can Follow to Become Sociopreneurs]

 

How often is Paylater used in Indonesia?

 

Based on the results of the Kredivo and the Katadata Insight Center survey reported from cnnindonesia.com, the use of paylaters in Indonesia continues to increase. During the pandemic there were 55 percent of new users on this feature.

 

Meanwhile, the paylater transaction method is also one of the favorite digital payment options in e-commerce. Paylater occupies the fourth position after e-wallet, bank transfers, and payments at mini markets.

[Also Read: 3 The Main Contribution of MSMEs for the Economic Growth in Indonesia]

 

How does Paylater work?

 

Actually, the paylater feature works in a similar way to a credit card. You see, this transaction allows the customer to delay the settlement of the transaction they made with the seller. However, paylater payments do not need to use a card, but digitally.

 

Later, the customer can pay the paylater bill through the installment method whose conditions have been informed before the customer makes a purchase. Usually, the paylater feature can also offer services free of charge if the customer makes a payment within a certain period of time.

 

What is the difference between a credit card and Paylater?

 

Although both paylater and credit cards both function to delay payments, they still have differences based on the method of payment!

 

When your customers use a credit card, then they will be required to pay at least the minimum bill until the payment deadline every month. Meanwhile, the remaining bills will be billed again along with additional credit interest.

 

On the other hand, buy now pay later services usually have a fixed billing schedule, for example every few weeks or months. Users of the paylater feature will be informed that payment must be made every period and the cost, the amount of the bill will be the same.

 

 

Paylater then and Paylater now

 

In the past, paylater payment services were usually only found in businesses that were already at the enterprise level. But nowadays, the use of the paylater feature is also increasingly popular among small and medium-sized businesses.

 

Meanwhile, the popularity of the paylater feature began to grow rapidly since the emergence of the pandemic in 2020. At that time, there was an increase in transactions through e-commerce because people were encouraged to shop from home and limit activities outside the home.

 

Of course, the buy now pay later service cannot be used for all transactions. You see, there will be a transaction limit that your customers get. However, paylaters certainly have the potential to help your customers make payments, especially when they shop online.

 

So, if you are yourself, have you provided the paylater feature? If not, you don’t have to worry! Because you can directly download the Cashlez App and activate the available paylater features!

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