Key things to know while shopping with BNPL

CredPal — Wed, 03 Nov 2021 18:45:26 +0000

Shopping with buy now, pay later has not only paved the way for businesses to increase sales and acquire more customers, but it has also helped end users to unlock the unlimited benefits that come with meeting their needs and spreading their payment over a period of time.

Entrepreneurs and business owners have been serving as agents of awareness for the BNPL payment option by offering it to their customers. The narrative is changing and the more businesses accept the payment option, the more customers are aware of it.

Shopping with buy now pay later can be tricky if you do not understand the basics of the payment services.

Educating yourself about a payment method that you have not used before is the best way to avoid running into debt especially because it can affect your finances. Here are the key things you should know before and while using a BNPL service.

1. Understand the payment options

Many of the BNPL financial organizations offer multiple payment options for your purchases. At CredPal, we offer 2 payment options. You can either pay at once or spread your payment within 6 months. You get the option to pay at once if your order amount is within your credit limit. You are offered the option to spread your payment within 6 months if your order amount is higher than your credit limit.

For example, if your credit limit is 20K and you are making a purchase of 10K, you can pay at once, but if you are making a purchase of 25K, which is higher than your credit limit, you will have to spread your payment within 6 months.

Make sure that you read up the terms and conditions before you accept the mode of payment so that you don’t pay for your ignorance later.

2. Examine the interest rates

You should know the amount you would be paying back when you are making your repayment. Our BNPL interest rate is based on your card type.

CredPal card plan

BASIC: 0 Naira annual fees; 21% monthly interest (restricted to users with less than 7k credit limit)
STANDARD: 0 Naira annual fees; 14% monthly interest
PREMIUM: 6,500 Naira annual fees; 6% monthly interest
PRESTIGE: 52,000 Naira annual fees; 3.8% monthly interest

3. How to pay

After you have confirmed the interest rate and you have selected the one that you are comfortable with, the next step is to know how to pay when you want to make a purchase using the payment option. We allow our customers to pay within the CredPal app.

How?

Log in to the CredPal app and head to the marketplace on the home page.
Search for the merchant you want to buy from and enter your product information,
Choose a way to pay, and when you want to pay back ( 2 – 6 months)

4. Return policy

It is essential that you clarify if you can return the products that you are purchasing using BNPL. We always ensure that our customers call the merchants they want to buy from to confirm the availability of the product and the price before they pay for it. Because once a product is paid for, the money leaves your credit limit and you would be expected to pay later at the due date.

However, we can reach out to the merchants to ensure that faulty products complaints are addressed.

5. Don’t overshoot your budget

Do not take for granted the ‘pay later’ part of the payment option that you begin to spend more than your budget. That move is not okay for your financial well-being. So, when you want to buy with the BNPL payment method, ensure that you stick to your budget.

Now that you are aware of the things you should know when you want to shop with CredPal’s BNPL payment option, head over to your CredPal app and begin to shop from our partnered merchants.

Have an awesome shopping experience

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5 Reasons to add Buy Now, Pay Later option to your E-commerce

CredPal — Wed, 22 Sep 2021 15:41:26 +0000

The consumer market has evolved over the years especially with its payment options. From accepting cash as the only means of payment to accepting bank transfers to using POS services and now to the phase of buy now, pay later in E-commerce.

Who would have thought that the phrase “no credit today, come tomorrow” can inspire a time-changing innovation where customers can buy whatever they need all on credit without the fear of not being able to pay back.

The Buy now, pay later payment option has been available for many years. You have probably heard it as shop now, pay later, installment payment, pay in 4 months, pay small small, pay at your convenience, and many more. Whichever term you’ve heard of, they all mean the same thing – you are simply buying and paying later.

The duration at which customers payback is dependent on the policy of the company. However, customers are not paying you back, you get paid in full while customers pay the financial organization later at their best duration.

Here at CredPal, customers have the opportunity to spread their payment within 2-6 months.

Reasons to add Buy Now, Pay Later to your E-commerce business

Have you heard so much about this payment option but you are not clear about how it works and still have doubts? Here are reasons you can consider adding the buy now, pay later option to your business.

1. Easy to merge to your website

Once you have signed up on CredPal, which we have explained in this article, the buy now, pay later payment is easy to integrate into your website, if you have one. That way your customers that shop on the website are aware that you are accepting such a payment option which makes it easy to shop for customers who would prefer the payment option.

2. You get paid in full while your customer pays in installments

We’ve had to clear the doubts of some of our merchants who ask what happens to a customer when they default or refuse to pay them back. Your customers are not paying you in installment, they are paying us back in installment. You get paid in full as soon as an order is confirmed from the customer’s end.

3. Flexible payment structure

Your customers enjoy a flexible payment structure that doesn’t pressure their accounts. They can buy from you, spread their payment, and still sort their other needs. CredPal allows your customers to spread their payment over 6 months with a breakdown of what they’re expected to pay back every month.

4. Convert new customers

Acquiring customers might be easy with the help of a great SEO strategy and social media ads but converting these customers to make sales requires another strategy of flexible payment option. You never know the customers whose preferred payment option would be to split payment, having a payment structure like this, helps to convert these sets of customers.

5. Increases customers Lifetime value (CLV)

A customer’s lifetime value is the total amount a customer spends at your store as a customer. When customers realize that they can buy from you and pay later, it helps them to continue to buy from you because there is a payment option that can help them buy from you while still meeting their other needs.

The buy now, pay later payment option is now one of the most acceptable payment options in and outside Africa. If you are convinced enough and you are willing to accept CredPal as a payment option for your customers to buy and spread their payment, then you should sign up now.