Since the start of the pandemic and with various measures to restrict movements, consumers have been going online to shop for their daily needs and wants. Many studies have also indicated that this behaviour shift (to online shopping) is likely to continue even post pandemic.
Coupled with the economic impact Malaysia is facing, we have seen a growing interest in Buy Now Pay Later (BNPL) as a payment option which offers consumers another way to manage their expenditure.
Adopting BNPL as a payment option is an increasing trend globally, the option is widely offered by retailers worldwide and online sites.
In Malaysia, BNPL options are also appearing across different retail industries such as fashion, travel, electronics and gadgets – as an alternative payment method with zero-interest fee.
But the availability of BNPL services has raised concerns that many consumers may be caught in this new debt trap in the long term.
Therefore, when paying with a BNPL service, consumers should plan their shopping and evaluate if the item they intend to buy is a “need” or a “want, ” and spend wisely according to their preferences and budget.
They should also find out more about the different BNPL options available and decide what would work best for their respective financial situations.
What is PayLater?
PayLater by Grab is the latest payment option that allows eligible consumers to purchase and spread their payments to manage their cash flow.
Under this latest feature, consumers have a more flexible payment option:
This means consumers can shop online now and choose to pay next month or in four monthly instalments. For instance, instead of paying RM2,000 for an electronic device, shoppers can split the bill into four monthly-instalments with no interest charged.
Completely interest-free and with no extra fees when you pay on time.
A whole range of features, like auto deduct bills, to help you stay on top of all your spending.
Can be used for your Grab spending too, to consolidate monthly Grab spends into one bill and pay next month.
No upfront costs.
Therefore, through PayLater, consumers can shop for things they need and want like electronic gadgets, clothes, baby milk powder and kitchen appliances in a more transparent manner, while prioritising privacy and security to avoid any risk of fraudulent transactions.
Some of the ways Grab helps to protect consumer’s wallets is through a 6-digit pin code, partnerships with globally recognised security systems with award winning fraud detection tools which is complemented with a strong in-house fraud and security team that adopts robust processes and customised algorithms to prevent and detect fraud. Grab has also set up a safety centre in the app to educate and keep consumers updated on how their personal information and wallets are protected.
Is BNPL for everyone?
It depends. While BNPL is a convenient option for consumers, it is important to exercise discretion on when to utilise it. Some key things to consider before any purchase:
Do I need this, or want it?
Can I afford this even with an instalment plan?
Have I bought anything else in installments?
BNPL can help you get that sofa you really want, but deciding if it is within the monthly budget even with BNPL, is essential. In short, BNPL services like PayLater can be considered as a budget management tool to reduce total liabilities!
Conclusion, BNPL services aren’t all that bad, especially when we understand what the options are, and how it fits into our lifestyles.
For more information on PayLater by Grab, visit https://www.grab.com/my/finance/pay-later/