This method is commonly known as the ‘After Pay’ or ‘pay later’ method. Its usually done in case of online purchases through Flipkart, eBay, Snapdeal, and other e-Commerce websites. In other words, it is a prime way to replace the present system of using credit cards. There are several reasons to support it as well. In the case of credit cards, if the deadline is missed the bank charges a huge fine for late payment, whereas in the case of the After Pay method, even if the deadline is missed by a week, the fine charged is not very irrational. Yet, this method is usually avoided in hand-to-hand purchases because stores do not have the policy to support it. However, not all online websites accept this option. Where Flipkart does, it’s still not very clear if amazon has this policy or not. To know more continue reading!
Reason behind not accepting After Pay
These prime members get free delivery for most of the orders. What happens here, the extra amount that the retailer would have otherwise obtained as delivery fees gets deducted so it is only the value of the maximum retail price. Now, on top of this, if customers start using this after-pay option, it becomes all the more difficult for the retailers. The minimum profit which they were expecting, that also goes out of their hands. Hence you see, if we put ourselves in their shoes, their business and sale are affected because of this method. Therefore it is avoided.
Is Afterpay and Pay later the same thing?
Some of your might get confused about whether AfterPay and Pay later are the same thing or not. Well, they both have the same function, the only difference is that the former is a bigger name, more precisely that of an agency, and the latter is the work which the agency mostly deals with.
