By January, your budget might need a reshuffle to help manage your funds post-Christmas. Fortunately, with the rise of Buy Now, Pay Later (BNPL) services, consumers have a feasible option to reorganise their finances following high expenditure times.
SYDNEY, AUSTRALIA, December 21, 2020 /Neptune100/ — Buy now pay later services offer shoppers the chance to pay off their bills and negate the need to accrue debt from financial institutions. Those finding themselves bogged down by start-of-year budgeting can use these services to manage cash and spread-out future payments. With a realistic limit and a flexible schedule, budgets can reset themselves over the next 1-2 months.
The concept of buy now pay later places fees on retailers instead of on buyers like is traditional for standard credit accounts. These interest-free services are a gamechanger for households that like to set a planned budget for their weekly or monthly spending. With the new year bringing its own set of challenges regarding budgeting, these services can help consumers create a fresh slate for January spending by assisting them in managing cash flow.
We saw this occur in 2020 when home renovation spending took off, as reported in the Zip Weekly Spending Index. Installation and renovation were up by 127%, landscaping by 55% and trade services by 45% indicating that Australians have been doing some big spending at home and making the most of interest-free payments.
The increase in popularity of these services means that they can now be used almost anywhere. Services like Tap & Zip allow BNPL to be used when you’d prefer to pay contactless. This opens up a whole new market for interest-free grocery purchases, restaurant trips and petrol stops.
As these companies expand from primarily online markets into the world of brick and mortar retailers, consumers can begin to depend on them for budgeting of essential shopping. Tap & Zip, in particular, allows shopping wherever Visa is accepted.
Interest-free BNPL services have skyrocketed in usage as they were quickly embraced by the millennial crowd who view them as less risky than traditional credit cards. Those looking to use them to control their budget and create sensible interest-free spending plans will be presently surprised.