Buy Now Pay Later (BNPL) In Nigeria – 4 Pros And Cons Buy Now Pay Later (BNPL)

Buy Now Pay Later (BNPL) In Nigeria – 4 Pros And Cons Buy Now Pay Later (BNPL)

Having a good knowledge of Buy Now Pay Later (BNPL), its pros and cons could help you be more informed when shopping online next time. The system around Buy Now Pay Later is meant to offer people an easy way to shop and pay with ease. 

Buy Now, Pay Later (BNPL) is a flexible way to make payments and purchase items without straining your finances. Knowing some of the Buy Now Pay Later Platforms that are available for you is important, as well as their policies. But before trying them out, you need to know some of the Pros and Cons of BNPL in Nigria. 

Join us as we go through them. 

Pros Of Buy Now Pay Later (BNPL)

Here are some of the benefits of using Buy Now Pay Later in Nigeria. They include the following: 

1. Split Up Payments 
2. 0% Financing
3. Simple Application 
4. No Hard Credit Check 

Let’s get started. 

1. Split Up Payments: The ability to divide payments into smaller, easier-to-manage sums is the main advantage of BNPL services. You don’t have to have all of the money on hand on the day of a major purchase.

The majority of buy now, pay later programs divide expenses into multiple installments spaced out by two to four weeks.

In order to assist you top off your bank account before the next payment arrives, this payment cadence frequently works with biweekly pay schedules.

2. 0% Financing: Generally speaking, you won’t incur interest if you make your BNPL installments on schedule. The majority of buy now, pay later customers are drawn to the offer of 0% financing. A BNPL arrangement can be effective if you want to divide payments without incurring any interest or service fees.

3. Simple Application: Customers just need to complete a brief online application process that requests basic information such as names, email addresses, and social security numbers in order to qualify for funding. They can then receive approval in a matter of minutes.

4. No Hard Credit Check: Before deciding on loans, BNPL lenders only perform a mild credit check or none at all. As a result, consumers can obtain loans without having high credit scores.

Cons Of Buy Now Pay Later (BNPL)

Here are some of the issues with Buy Now Pay Later System In Nigeria. They include the following:

1. Fees and Interests
2. Possible Overdrafts
3. Easy To Overextend Finances 
4. Returns can be difficult 

Let’s get started.

1. Fees and interests: You can be fined interest on the balance that remains or late penalties if you fail to make a BNPL payment on time. They can rack up rapidly, depending on the BNPL lender’s charges and the way these costs are set up.

In the event that you completely cease making payments, purchase now, pay later providers may also give your account to a collection agency. Your credit score may be jeopardized during this period in addition to accumulating additional fees and interest.

2. Possible Overdraft: If you’re not attentive, regular, routinely scheduled payments may raise your risk of bank account overdrafts.

Make sure you have enough money in your account and remember the schedule if you have BNPL payments automatically deducted from your checking account.

To prevent late payments, mark these dates on your calendar and make sure you have enough money left over after each paycheck deposit to cover the following payment date.

3. Easy To Overextend Finances: The potential for financial overstretching is one of the main risks associated with BNPL services.

It could be challenging to register the item’s total cost if you only look at the cost of each payment.

Particularly when you make many purchases with buy now, pay later plans, debts can accumulate and become difficult to manage.

4. Returns can be difficult: If you need to return a BNPL purchase, you could be in for a wait and possibly a tough process. In contrast to using a credit card to make a purchase, the retailer will reimburse the BNPL loan for the money (provided the return is accepted).

After that, the lender gives you the return. You must continue to make payments in accordance with your BNPL plan at this time, or else you risk late fees and penalties. I

t may take weeks or months to complete the return if there is a disagreement regarding the transaction.

Why You Should Choose BNPL In Nigeria

There is no better time to get that product other than now. Buy Now, Pay Later is here to help reduce the financial strain when purchasing. This system allows you to provide make payment in segments for a fixed period, for instance, making 3 installmental payments for the purchase of a baby’s crib. 

In as much as it is here to help. It isn’t always advised for all occassions as it could lead to reckless spending and debt incurrance. 

Before choosing to go for the Buy Now Pay Late option make sure what you want to purchase is a need and that you have the financial capacity to consecutively make payments back to the platform when due to avoid legal implications. 

Conclusion 

You shouldn’t move faster than the information you have at hand. This is why after providing you with the different BNPL platfroms in Nigeria, we have also gone ahead to explore it’s Pros and Cons and how they affect you as an individual. 

Do well to go through this post carefully to be aware of its cons

In our next post, we will look at . We hope this post was useful to you.