“Buy Now, Pay Later” .. The world’s fastest growing way of shopping…

“Buy Now, Pay Later” .. The world’s fastest growing way of shopping…
“Buy Now, Pay Later” .. The world’s fastest growing way of shopping…
(MENAFN – Al-Anbaa) A recent study showed that consumers who use Pay Later tend to buy 50% to 200% more products per transaction compared to using other payment methods, and the “Buy Now, Pay Later” method is the fastest growing payment method. With the growth of e-commerce in 2020.
This method allows shoppers to pay small and medium bills in monthly installments without interest, and if the customer is always committed to paying, he can pay in installments for more expensive goods such as luxury goods. These platforms pay the full amounts to the seller in return for a percentage of the invoice ranging between 3 and 6% sometimes.
These fees constitute about 80% of the revenues of these platforms, but they earn about 20% of their revenues as fees that they deduct from the buyer in case he does not pay the payments on time, and according to the study, one in 10 shoppers who use the services of buy now and pay later, were pursued by the collectors Debts.
It is worth noting that only 11% of payments include a clear warning to shoppers that they are entering into a credit agreement, and the remaining 89% put this information in small letters, despite this there appears to be a growing optimistic view of the industry, according to “Al Arabiya.net” «.
And the Australian platform “Afterpay” achieved $ 15.8 billion in total sales across its platforms in the fiscal year that ended in June, with a growth of 105% annually since 2019, and “Affirm” shares made significant gains last week after an agreement concluded with “Amazon” to launch The option to buy now and pay later for some purchases over $50 in the region.
The popularity of this payment method has begun to rise, and two major players have emerged in this sector recently: UAE-based “Tabby” intends to accelerate expansion plans in new Arab markets after it raised an additional $ 50 million, giving it a valuation of $ 300 million, and “Tabby” offers « Services in Saudi Arabia and the UAE with more than 2000 brands.
While the Tamara platform, which was established last year in Saudi Arabia, announced that it had obtained investments of 110 million dollars, which is the largest of this kind in the Middle East and North Africa so far, and expectations indicate that the value of purchase transactions now and paying later will reach 680 billion dollars globally by 2025.

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