In 2017, Buy Now Pay Later payments represented $1.7 trillion in the global market, growing at twice the rate of credit cards, and we can see why.
As consumers, we get excited about new, flexible ways to pay for our purchases, and BNPL allows us to buy the things we love in split payments, with typically little to no interest rates.
Previously only available online, Visa has introduced its very own instalment or BNPL payment method that is now available for credit and debit cardholders in Malaysia.
Today, consumers can utilize the Buy Now Pay Later (BNPL) payment method at the checkout counter using a Visa card.
What is Buy Now Pay Later (BNPL)?
Buy Now Pay Later is a payment solution that gives buyers the option to divide the total cost of their purchase into smaller easy, equal payments over a period of time.
For example, a person may pay RM500 every month for four months for an item or a service that costs RM2,000 in total. This allows the buyer to purchase what they want now and simply split their payments so they don’t have to pay one lump sum.
Consumers typically use BNPL to make larger purchases like electronics, furniture, retail, and even travel.
For example, a tourist can split easy, equal payments for either their international or domestic trip over a travel booking platform.
When it comes to travelling, some of the expenses can be pretty big if it is all in one lump sum. For bookings made locally via BNPL, a person can arrange for their vacation packages, hotel stay, cruises, flight tickets, transport, tours, and other necessities, but also split the payments into small, easy, equal amounts to be paid at set intervals.
So travelling becomes more affordable and accessible to many, which is especially a need after experiencing lockdowns at home post-pandemic.
For consumers, BNPL makes purchases more affordable with smaller payments and predictable payment cycles from the date of purchase.
BNPL vs. Credit Card Installment
The main differences between BNPL and credit card instalments are:
- Accessible: BNPL is accessible to non-credit cardholders. Debit cardholders may also purchase items via BNPL offline.
- Easy registration: While you need a good credit score to apply for a credit card, it is not a requirement for BNPL. All you need is a bank account and you’re all set.
BNPL for Visa HSBC cardholders
HSBC bank is Visa’s first issuing partner for BNPL in Malaysia. HSBC will provide their cardholders with the flexibility of splitting qualifying purchases into fixed equal payments over a defined duration.
Among categories of items or services that qualify for HSBC’s Visa BNPL scheme are:
- Travel
- Healthcare
- Jewellery
- Furniture
- Appliances
- Auto Repair
- Home Repair
- Entertainment
- Fitness
A Whole New World to Pay On A Trusted Network
For over 6 decades, Visa has invested billions in payment technology to shape the future of commerce. As a leader in digital payment solutions, Visa has provided buyers and sellers worldwide with access to the global marketplace.
A trusted engine of commerce since 1958, the Visa network works behind the scenes to protect and process transactions in the blink of an eye.
BNPL by Visa enabled through HSBC is a new payment gateway for cardholders who make offline purchases. Making payments with BNPL is as seamless as swiping a Visa credit or debit card at the checkout counter. A HSBC Visa card, trusted by consumers and retailers alike, does not require additional credit lines from the purchaser.
Furthermore, consumers will be informed of the exact amount they should pay every month, so they will not be caught off-guard when their next payment is due.
How BNPL helps consumers
- It’s accessible: BNPL can help pay for unplanned expenses like replacing or repairing parts of a vehicle, for example. From there, buyers can plan their budget wisely.
- It’s flexible: All consumers with HSBC Visa debit or credit cards are eligible for BNPL. BNPL also opens up an extra payment option for customers at checkout counters. Sign up for a HSBC Visa card to begin your BNPL journey.
- There is confidence in the product: With the all-accessible HSBC Visa card, buyers don’t have to sign up for anything new and wonder if they can trust it.
- There is transparency: Consumers know when their next payment is due and the exact amount. No surprises here.
All in all, BNPL opens up an alternative payment method for buyers to be able to affordably pay for their purchases and expenses through a trusted network of commerce.
For retailers, BNPL helps businesses generate more revenue by opening up a payment method that is more accessible for new demographics of buyers. Visit www.visa.com.my to begin your BNPL journey.
Disclaimer: All product claims related to Visa Instalments are true, accurate, and not misleading. This article does not constitute financial advice. Visa reserves the right to amend the terms and conditions of their products and services without prior notice.
