What is BUY NOW, PAY LATER?
BUY NOW, PAY LATER is a payment model that's quickly exploding in popularity. Today, many large retailers offer their customers BUY NOW, PAY LATER options. These companies have made it possible for shoppers to pay the retail price soon after purchasing an item and not be forced to wait for a credit or store check to get the product.
Knowledge is power! With this article, you will be able to do your homework about BUY NOW, PAY LATER providers when making a large purchase online or offline!
This article will examine six of the largest companies that accept BUY NOW, PAY LATER and provide detailed information as well as examples of how they structure their payment program.
Some Major Retailers That Accept Buy Now, Pay Later
These retailers are not the only ones that are offering these choices. In fact, many other companies are willing to step in the way of credit card customers who can't wait to acquire products - and pay them off later.
But, they are the hottest.
1. Wal-Mart
Walmart is the largest retailer in the world, yet they were one of the last major stores to offer a BUY NOW, PAY LATER option. A few years ago, Walmart finally joined forces with Synchrony Bank and began offering BUY NOW, PAY LATER to its customers. Walmart offers two payment options through Synchrony Bank: Approved Now and AccountNow.
Approved Now allows customers to shop online or in-store and pay off their entire order later at no extra cost. AccountNow is similar to Approved Now, except it's geared toward customers with poor credit. AccountNow offers single-use payment methods, online bill pay and even money transfers. When an AccountNow customer makes a purchase with their card, they will see two charges on their bank or credit card statement: the price of the item itself as well as a fee for using the card.
2. Best Buy
Best Buy has one of the most generous BUY NOW, PAY LATER policies around. The company offers its own credit card, called My Best Buy Visa Platinum Rewards Card which can be used for shopping at Best Buy locations and online at bestbuy.com. Best Buy debit cards can also be used in-store or online to make a purchase. Best Buy customers are not charged any fees when paying off their orders over six months. The only drawback is that Best Buy's credit or debit cards can only be used in-store and on Best Buy.com.
3. Toys R Us
Similar to Best Buy, Toys R Us offers its credit card, the Toys R US Kids' Card, which can be used at Toys R Us stores, on toysrus.com and through the company's and partner websites on a select number of digital purchases over six months at no extra charge. The Toys R Us Kids' Card offers a welcome bonus of $25 after users spend $500 in the first three months.
4. Target
Target is another retailer that allows its best customers to pay off their orders over time at no extra charge. Target has partnered with American Express to offer the 'Target REDcard', which comes with a revolving credit line starting at $0 and can be used to make purchases wherever American Express is accepted. The card also comes with several benefits like free shipping and no annual fee, making it an attractive choice for Target shoppers.
For example, if you are buying a $300 television from Target or Best Buy with PayPal BUY NOW PAY LATER, and you can begin your 6 month grace period as soon as your item arrives at your house. As long as you don't forget to make payments (which is very unlikely), you won't be charged anything additional.
5. Amazon
Amazon is another retailer that allows its best customers to pay off their orders over time at no extra charge. Amazon offers the Amazon Prime Store Card, which allows individuals to pay for purchases at Amazon.com with a minimum purchase of $50, within two months and receive no interest on purchases made up to the first $50,000.
6. Kmart
Kmart is one of the few BUY NOW, PAY LATER retailers that don't offer a credit or debit card of its own. However, the company has partnered with Synchrony Bank to offer BUY NOW, PAY LATER to its customers. In addition to Kmart's financing program, the company also offers Kmart credit cards for other companies such as Sears and Sears Hardware Stores. Individuals who have these cards can use them at Kmart locations nationwide.
The Buy Now, Pay Later model is quickly gaining popularity in the United States. You can find thousands of products available to pay for at a later date - with an option to defer payments any time you want through PayPal or another payment provider. These companies want you to pay for your purchase as soon as possible.
Recently, retailers have been offering these payment options to consumers more and more often. If you are not familiar with it, BUY NOW, PAY LATER is very similar in function to store cards. However, instead of being given credit at the store, you use a card number to make a purchase and receive money by direct deposit or checks mailed out within a certain amount of time after paying your bill.
How Much Does BUY NOW, PAY LATER Cost?
If you are going to use the service offered by Sears or Best Buy, for instance, you have to make sure you understand what the terms of using it are before signing on the dotted line. If a customer misses a payment for their store card or their BUY NOW, PAY LATER option, they might be charged an interest rate as high as 25%. That interest rate is definitely high enough to warrant thinking twice about using these financing options if you think can find another way to make your purchase.
Conclusion
BUY NOW, PAY LATER may not be a perfect solution, but it can definitely help some people who need a little extra time to come up with the money they need to make a purchase.
The Buy Now, Pay Later payment option allows customers to pay the retail price soon after purchasing an item instead of having to wait for a credit or store check.
Have you tried out one of these services?
What was your experience like? We’d love to hear about it in the comments below.
