Buy Now Pay Later software (BNPL) / Installment Software allows you to pay for some of the price and pay the rest later. Some split the payment into fractions. For example, instead of paying $60 for a couch at once, you could pay $15 for the couch, get it, and pay $15 for the next 3 months.
$60 divided by 4 equals $15. So you paid $15 for four months instead of just paying the $60.
These could help customers who aren't able to save enough, but they really can be bad for the customers.
1. They make customers spend more money than what they need, and potentially not have enough money to finish the payments on.
2. There could be an emergency where they need money, and would have a late payment fee.
3. Most of the products I have are cheap. I am considering making courses which could cost around $30 - $40. It's just best that the customers pays them in full.
4. Some software seems to give you the credit type of interest. If you don't know what interest is in credit cards and loans, they essentially are like a fee that is a percentage of the money you borrowed and have to pay.
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