Downside and pitfalls of buy now pay later services Make your purchase and then make sure you are ready to pay back your purchases, which are normally direct debited from your nominated bank account. All you need to do is sign up online or in store, often you can get on the spot approval although with some services this may vary. The process is really simple but may get harder as this industry gets regulated. The list of retailers that have signed up with the likes of Afterpay is increasing all the time as they realise what the benefits to their monthly sales figures can be. Which retailers can buy now pay later be used? This can still work out as much cheaper credit as long as you meet your repayment commitments on time. Then these default charges are passed onto you, the consumer. But these costs are borne by the retailer unless there is a problem with repayments. Well yes, of course there is no such thing as a free lunch. Kind of like a layby but you get the goods straightaway. As a consumer you don’t see this, you are just able to pay over instalments for the goods bought. Basically, this works as an interest free model because the fintechs have agreements with the retailers where they take a commission on the sales value. These are offered by the likes of zipPay and Afterpay. Loads of Australians are apparently cutting up their credit cards and converting to interest free buy now pay later models. Buy now pay later no credit check instant approval Australia What does buy now pay later mean?
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