Which is of the following is an advantage of BNPL?

Benefits of Buy Now, Pay Later (BNPL) for Businesses and Consumers

Buy Now, Pay Later (BNPL) has emerged as a popular payment option, offering both businesses and consumers unique advantages. Here’s a closer look at the key benefits provided by BNPL:

Business Advantages:

• Boosted Sales: BNPL allows customers to make purchases without paying the full amount upfront. This flexibility entices more customers to make purchases, leading to increased sales volume.
• Improved Cash Flow: Businesses receive payment for the full amount of the purchase upfront, while customers spread the cost over time. This provides businesses with immediate cash flow to support their operations and investments.

Consumer Advantages:

• Fosters Loyalty: BNPL builds consumer loyalty by providing a convenient and flexible payment option. Customers appreciate the ability to make purchases without straining their immediate financial resources.
• Enhanced Creditworthiness: Responsible use of BNPL can positively impact consumers’ credit scores. Timely payments on BNPL plans can demonstrate a history of responsible credit management, boosting creditworthiness and improving access to future credit opportunities.

BNPL is a versatile payment option that offers numerous advantages for both businesses and consumers. For businesses, it enhances sales and cash flow. For consumers, it promotes loyalty, potentially improves creditworthiness, and provides a convenient way to make purchases. As BNPL continues to gain popularity, it is likely to play an increasingly significant role in the retail landscape.