Philip Belamant Highlights Common Misconceptions About Buy Now Pay Later
It’s no secret that buy now pay later options have become increasingly popular in recent years. A survey conducted by YouGov revealed that 43 per cent of consumers believe Buy Now Pay Later companies make money on the interest they collect, and this number is only expected to grow in the coming years.
However, Philip Belamant, founder and CEO of Net1 UEPS Technologies, believes several misconceptions about Buy Now Pay Later need to be addressed. In a recent interview with BusinessWire, Belamant outlined three of the most common misunderstandings about Buy Now Pay Later.
To begin with, he addressed the belief that Buy Now Pay Later companies make money on the interest they collect. “This could not be further from the truth,” said Belamant. Buy Now Pay Later providers lose money on the interest they charge. The real benefit for these companies comes from the increased sales generated as a result of offering buy now pay later options.
Belamant also debunked the myth that Buy Now Pay Later is only for high-income consumers. In reality, Buy Now Pay Later is available to anyone who wants it and can be used for various purposes, including large purchases like cars and homes or smaller items like clothes and groceries.
Lastly, Philip Belamant addressed the misconception that BNPL is a new phenomenon. The truth is Buy Now Pay Later has been around for centuries. The first recorded instance of this type of financing was in the 18th century when it was used to finance the purchase of ships.
There are many misconceptions about Buy Now Pay Later that need to be addressed. With more and more consumers using this type of financing, it’s essential to ensure they have the correct information. Thanks to Philip Belamant, everyone understands what Buy Now Pay Later is and how it works.