Paying via credit card is so common now. But consumers are looking for better options to use them for shopping online. The ease of shopping and paying later is very luring. But they are oftendishearteneddue to the limited payment options for large transactions. Is EMI an option for it? Is it possible to shop now and pay laterwhich could be a better payment option? Will it work every month? These are some of the valid thoughts that cross the mind. Now, that the season of cheer is upon us, the need to add value to shopping and gifting is at its peak. Let’s check out the wonderful choices of payment for large purchases. Next time you shop for a sofa set or a double door refrigerator, the paymentprocess should be the last thing on mind.
2 traditional options for credit card payments
They reduce purchase limit of credit
- The traditional way credit cards work is that you purchase online or even offline any item of your choice within the limit prescribed. This amount has to be paid within a month or a 30-day cycle. The bank allows a ‘credit note’ or leeway but will also charge approximately 3% for thedelay on a monthly basis. A few banks also levy other charges which are included in the delayedpayment.
- Any shopping items purchased can also be converted into EMIs. This facility is given by banks to the e-vendor. The purchase reflects on the consumer’s card. Later the amount is turned into monthly installment. It comes at a cost and is lower than the rate of the credit card. If payment is not done, then a fee is levied as a charge.
If these two scenarios are considered, then in both cases the credit limit is minimized. Now suppose if you were not to use these two options? Is there a possibility to still shop online, and pay later? New payment solutions have been introduced in the market and they are helping even conservative shoppers to buy stuff online, and pay later without any risks. As the history of digital transactions opens up new possibilities, the way credit card payments operate is being upgraded. Consumers can also select their EMI options or opt for other payment methods.
How online sites are making payment gateways easier
Shop now, pay later has got a whole new meaning now with the advent of payment companies that have introduced exciting options and solutions to pay e-vendors. It is now feasible to choose a payment option with many merchants. To avail its facilities and enjoy its convenience of use, you have to complete an online form. To become a member, PAN and Aadhaar cardare required. With the basic personal information, the registration is instant. There is no need to provide the bank details, which should instill confidence in the consumer who opts for this payment process. Many online merchants are partnering with such companies that allow the consumer to buy and pay later. The customer gets an option of paying for the product after 14 days. For the online merchant the biggest advantage is that the consumer will complete the transaction. It is seen that other payment methods see a significant drop in consumer interest in the product, the buy now pay later option works almost 100%. As online shopping becomes easier, it results in higher volumes and better margins too.
The number of shop now pay later online stores will increase in the future. As more people understand how to take advantage of paying later, the mental peace for shopping will be therapeutic. Keeping this in mind, the new feature of paying later sounds like shoppers will continue to buy items unhindered by when and how they can pay. With the onboarding of many merchants, the risks involved have been mitigated.Larger dealers and stores dealing in refrigerators or television sets and high-end furniture can serve their customers better.
To client:(please note this is an exercise to explain the consumer…..it is important to explain before introducing an option like ePayLater. All consumers are not literate enough to grasp the concept easily. It is a learning process and often useful in making them understand how they will benefit from alternative payment options especially for large transactions. Hence, it is essential to this topic.