Experian to run Singapore BNPL credit bureau
Experian has been appointed to operate Singapore's buy now, pay later credit bureau, providing firms with creditworthiness checks on consumer BNPL debt.
The NEW and IMPROVED BUY NOW, PAY LATER
Today, I’m sharing with you how buy now, pay later options work, how they can help you, and how they can hurt you given the recent changes in how TransUnion, Experian, and Equifax are handling these payment methods. Enjoy!
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00:00 HELLO, MY FRIEND
00:31 THE HISTORY OF BUY NOW, PAY LATER
01:09 HOW DOES BUY NOW, PAY LATER WORK?
01:56 HOW DO THEY MAKE MONEY?
02:58 WHY DO STORES ACCEPT THEM?
04:36 THE DOWNSIDES OF BUY NOW, PAY LATER
07:29 THE UPSIDES OF BUY NOW, PAY LATER
09:38 WHY YOU SHOULD SUBSCRIBE!
THE HISTORY OF BUY NOW, PAY LATER (BNPL) #BUYNOWPAYLATER
Some of the new and improved BNPL companies are Zip, Affirm, Sezzle, Paypal, Klarna, and Afterpay. They’ve got these buzzword-style brands to convince you that this payment method is brand new! On the contrary, these methods existed during the first roaring twenties. Watch the video to see what these BNPL options were primarily used for!
HOW DOES BUY NOW, PAY LATER WORK?
Imagine that you’re shopping online for the new Gucci belt that you saw in House of Gucci, starring Adam Driver. You notice that the price is $395. It’s out of your budget but in the checkout section you see that you can pay in 3 interest-free payments of $130 with Affirm. You select that method, pay $130 today, the Gucci belt arrives, and you pay the remaining payments over the next two months.
HOW DO THEY MAKE MONEY?
These buy now, pay later companies have agreements with merchants (Gucci, Target, Walmart, Kohls, etc.) in that they charge a 2%-8% fee of the purchase price to the merchant. In our example, Affirm would charge Gucci 5%, or $19.75, if you use their payment method. Watch the video to find out what happens if you miss a payment!
WHY DO STORES ACCEPT THEM?
The more payment methods a merchant offers, the more likely you’re going to purchase their product. In addition, having a buy now, pay later method increases the chance that the A.O.V., or average order value, is greater. You might buy not only 1 Gucci belt, but 2 or even 3 Gucci belts! Gucci just made more money because you bought 3 belts, you don’t feel like it’s hurting your wallet too much because it’s spread out over 3 months, and Affirm is happy because they just made 5% off the whole sale! Watch the video to hear what would happen if the only payment method we had was snail mail!
THE DOWNSIDES OF BUY NOW, PAY LATER
1. INSTANT GRATIFICATION #INSTANT GRATIFICATION
The ability to purchase something without paying for it right now gives you the permission to satisfy your most immediate urges.
2. NEGATIVE IMPACT ON CREDIT SCORE AND UNFAVORABLE TERMS
If you happen to miss a payment on one of these loans, it will negatively impact your credit score. Next time, they can also choose to give you unfavorable terms or possibly not even let you use the option! Watch the video to find out how much more it could cost you if you miss a payment!
3. MENTALLY DRAINING
Every time that you wear the Gucci belt, every time that you see the Gucci belt, every time that you get a compliment on the Gucci belt, you will be reminded that you have a payment coming out this week. You won’t truly get to enjoy the Gucci belt until it is completely paid off. Watch the video to find out what happens if you have more than one buy now, pay later loan!
THE UPSIDES OF BUY NOW, PAY LATER
1. POSITIVE IMPACT ON CREDIT SCORE #EXPERIAN #TRANSUNION
These BNPL companies now can report successful payments to the credit bureaus; thereby, increasing your credit score. Watch the video to figure out how BNPL solves the chicken or the egg problem!
2. SPENDING LIMITS
These BNPL companies constantly reevaluate your ability to repay their loans. Every time that you want to purchase something, you have to go through the whole process again. At times they could deny you their option. Watch the video to find out when they would deny you!
3. BETTER FIT FOR YOU
These options could be a better fit depending on how you budget and spend your money. Watch the video to see how our example of purchasing a Gucci belt works here!
4. LIFESAVING MOMENTS
For items that you absolutely NEED, these options can provide a lifesaving moment at 0% interest so that you can get the item TODAY and not TOMORROW.
DISCLAIMERS AND DISCLOSURES
This content is for education and entertainment purposes only. Ruben Sholinyan does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you.
3 Will BNPL affect my credit score?
Money mindset coach Laura Ann Moore gets in to the detail of how BNPL schemes actually work. Make sure you check out video 3 in the series – Does BNPL affect my credit score?
Have you ever used BNPL? In Your Real Money Stories, Zopa’s podcast, we heard from someone who used it to buy clothes and ended up being pursued by debt collectors. Head to www.zopa.com/podcast and subscribe to hear her story.
Buy Now Pay Later for eCommerce | The Whys and Hows
Have you already added Buy Now Pay Later functionality to your website?
Then it’s time to take action.
In this video, you will discover Buy Now Pay Later services from different angles. You will learn what is the benefit of Buy Now Pay Later for eCommerce and what your business is missing without such a payment option.
⏰ What’s inside the video ⏰
00:00 What is Buy Now Pay Later?
02:20 Buy Now Pay Later vs. Credit card
03:20 Why Consider Buy Now Pay Later for eCommerce
05:26 Buy Now Pay Later & Magento
#buy_now_pay_later_for_eCommerce #GoMage #buy_now_pay_later_magento
❓What is Buy Now Pay Later?
Buy Now Pay Later is a payment system that allows customers to buy products now and pay for them later in small installments. Buy Now Pay Later is a life-saver for customers when they don’t have the whole sum on hand.
Buy Now Pay Later vs. Credit card
Buy Now Pay Later services don’t require a hard credit card check, have no interest fee, and offer payment frequency that fits customers’ budgets.
With a credit card, interest charges can add up quickly and late payments can be damaging to your credit score.
Customers are more likely to try BNPL services, especially when we talk about Gen Z and Millenials, who are finally all grown up and have money to spend. If your target audience falls into one of these categories, it’s the best clue to adopt BNPL for your eCommerce business.
Most importantly, customers are familiar with such solutions and trust them.
Why Consider Buy Now Pay Later for eCommerce
Buy Now Pay Later has numerous benefits for eCommerce, such as an increase in sales, customer loyalty, better competitiveness, and better customer experience.
BNPL solutions are known to increase conversion rates and sales. 85% of customers are more likely to make a purchase if a seller offers interest-free payment options. It can even increase average cart sizes by 20 to 30 percent. Impressive, right?
One of the reasons why customers don’t make a purchase is because they don’t have money for it. Without a BNPL, they would just leave your store. With such a payment system, especially when shopping for some necessities, they will choose your store over the competition.
⚙ Buy Now Pay Later & Magento
Magento store owners are lucky to have a few solutions that allow adding Buy Now Pay Later functionality to their storefronts. There are Klarna, Afterpay, Affirm, and many other buy not pay later solutions.
Learn more about us:
Our website: https://cutt.ly/MEJJy3y
Get in touch with us for a consultation: https://cutt.ly/UEJJoKT
GoMage is a Magento development company with over 11 years of history and 1000+ successfully delivered projects. We know how to build a Magento 2 store and Magento PWA, take it from zero customers to thousands. We provide a full range of Magento development services:
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In our video blog – GoMage – Magento Development Company – we share our knowledge of Magento PWA and development, insights from Magento 2 experts, industry tips from Senior Magento developers, and help eCommerce business owners and managers grow their eCommerce businesses.
This channel focuses on practical experience instead of theories – we’ve built & seen-it-all.
Subscribe to our channel to stay tuned for the latest Magento news, eCommerce trends, and Magento expert insights.
The Truth Behind ‘Buy Now, Pay Later’: Is It Boosting Your Credit?
CNBC senior personal finance correspondent Sharon Epperson joins the 3rd Hour of TODAY with tips for keeping your credit in check while inflation continues to hit hard at home and in your wallets.
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#BuyNowPayLater #PersonalFinance #CreditScores