SYDNEY, Jan. 20, 2021 /PRNewswire/ -- Retailers are feeling the heat as well. With less money coming in, they need to adjust their sales projections to account for a dip in the first few months as incoming cash levels out with the money spent at the end of the year.
One such action could be promoting Buy Now Pay Later (BNPL) services such as Zip. Fintech companies such as Zip allow consumers to pay for their products, services and even household bills in a way that accounts for less money in the bank in January. These services are allowing consumers to spend in January throughout lower-income periods.
For instance, Zip allows its users to buy products and services now and then plan to pay the money back over multiple payment installments to lower the purchase's immediate cost. Users can choose a payment schedule that works for them, allowing weekly, fortnightly or monthly repayment options to suit the user.
What really gives this system punch is that most BNPL providers don't charge interest for on-time payments, setting them apart from traditional credit cards' high rates. With this difference, consumers can keep spending in January, knowing they won't have to make their full repayment until February or March.
After a year that devastated small business, Buy Now Pay Later (BNPL) may be the secret to curing the post-holiday sales slump. Not only does it allow Australians to make the purchases they need (like BPay bill payments via Zip), but they can also spend on other things that they would buy in later months but would prefer to buy now. For example, to take advantage of a timely sale.
BNPL has now jumped from the internet into real life, creating the ability for consumers to pay later for their purchases in-store. Zip has partnered with Visa for their Tap & Zip buy now, pay later program, allowing users to pay contactless anywhere the credit card is accepted.
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