budgeting-buy-now-pay-later

Managing money 

<h2>Keep on top of your finances</h2>&nbsp;Finding&nbsp;budgeting tools is a good way of keeping track of your finances. Losing track of this can leave you clueless about where your money is going and potentially missing due dates for payments leading to negative credit scores!Buy now, pay later providers greatly help manage your payment for the items or services you purchase. This is awesome as it gets one thing off your shoulder and you don’t have to worry about it. With&nbsp;<a href="https://www.cashewpayments.com/ways-to-pay/">cashew installments</a>, you can spread the cost over time and choose to pay in 3, 6, or 12 installments for your purchases. This works wonders if you're on a&nbsp;monthly budget and need to purchase something immediately, getting instant gratification, without having to pay the full amount for the items/ services at the time of purchase.&nbsp;Additionally, BNPL enables you to prioritize your budgets and put your money towards more pressing things that may come up, such as emergencies or last-minute urgent payments. In the meantime, you pay off small amounts back to cashew, which is easy on your wallet and makes&nbsp;managing money easier. &nbsp;<h2>Payment flexibility</h2>&nbsp;It is important to first set up your budget and understand your spending habits. Tracking your expenses with a budget calendar would be easier if you know what you are likely to spend. This way, you would be on top of everything.&nbsp;What makes managing your budget even easier is having the payment flexibility that BNPL provides. The flexibility to choose the installment is super useful. Pro tip: purchase after your paycheck so you're covered for the next installment in 30 days. This way, you don't go into overdraft and have enough money for other expenses until your next payday! This is good for budget management&nbsp;and tracking&nbsp;monthly expenses&nbsp;as you keep on top of your money and spending.&nbsp;Another big plus of BNPL is the fact that it lets you hold on to your money for longer, and this allows you to earn interest, for example, if your money is in a bank that offers interest on your money.&nbsp; &nbsp;<h2>Use budgeting tools and payment trackers</h2>&nbsp;A great strategy for managing your budget is keeping a monthly tracker or&nbsp;budget planner, noting down all your expenses for the month and putting in any upcoming payments that are due along with the due dates. This also lets you see how much money you can allocate to different expenses and budget for it.Set alerts and reminders on your phone and calendars to alert you when payments are due. One tool for all your alerts works great, as it would be easier to track and prioritize.&nbsp;If your expenses are more than what you would like to budget for, opt for more BNPL services for the higher-priced items/services.&nbsp;<a href="https://www.cashewpayments.com/shop/">cashew</a> offers both online and in-store services for various stores. Hence, you’re not restricted to just online purchases, giving you the flexibility to shop in stores too! &nbsp;<h2>Interest-free payments</h2>&nbsp;Gen Zs aren’t into using credit cards, as&nbsp;managing finances and keeping up with the credit card payments at the end of the month may be too much of a hassle or maybe overseen and drastically reduce their credit score and result in huge interests piling up!&nbsp;BNPL is an incredible alternative to using credit cards, it is straightforward and unlike other methods; BNPL is interest-free, you only pay the price of the items and cashew manages the payment for you, which is perfect! All you got to do is set the reminders and alters to ensure you pay your installments. Payments, however, have to be made on time, and therefore keeping track of them is extremely important!&nbsp;Get a grip on your budget and manage your money seamlessly. Make use of BNPL to accommodate your budget, and let cashew handle your payments for you! &nbsp;

Keep on top of your finances and manage your budget using Buy now pay later options. Be in control of your money with cashew.

The art of managing your budget with BNPL

Difference between credit card and BNPL

&nbsp;In a world where technology and lifestyle are developing rapidly, our purchasing habits have had to follow. From the latest electronics &amp; gadgets to&nbsp;fashion must-haves &amp; home items, the pace of change is relentless.&nbsp;Online shopping and tech solutions have made it easier for us to get what we need with just a single click - we can spend hours scrolling through the endless options!&nbsp;The&nbsp;credit card vs. BNPL is one of the hugest undergoing fintech competitions. The ‘buy now pay later’ (BNPL) shopping style has been on the rise, especially during the pandemic of 2020, and has continued since then. With a market worth of&nbsp;<a href="https://explodingtopics.com/blog/bnpl-stats">$248.1 billion in 2023</a>, this method has spread its wings across the entire market, and of course in the UAE, with BNPL players such as&nbsp;<a href="https://www.cashewpayments.com/">cashew</a>.&nbsp;<h2>What does BNPL stand for?</h2>&nbsp;People often fantasize about having a magical genie that aids them in their shopping sprees without swiping their debit or credit cards.&nbsp; Well, the 'buy now pay later' trend is the modern-day version of that legendary genie! The hassle-free registration process and the user-friendly experience make BNPL a preferred choice over other payment methods, like credit cards.<h2> How does BNPL work?</h2> The Buy Now Pay Later procedure relies on&nbsp;<a href="https://www.investopedia.com/buy-now-pay-later-5182291">point-of-sale (POS) financing</a>, enabling shoppers to&nbsp;<a href="https://www.cashewpayments.com/ways-to-pay/">buy products in stores or online</a> and pay for them in several installments without being charged interest.&nbsp;&nbsp;<figure class="image"><img src="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/BNPL_vs_Credit_card_growth_12d316cfac.webp"></figure>&nbsp;The BNPL market has seen tremendous growth over the past several years, starting at $87.2 billion in 2020 and reaching an estimated $179.5 billion in 2022. But it doesn’t just stop there! This trend is expected to continue, with the BNPL market predicted to triple by 2025 to an epic $531.53 billion. If that wasn't impressive enough, the BNPL market is expected to be worth an astonishing $3.27 trillion by 2030.&nbsp;According to&nbsp;<a href="https://www.crresearch.com/blog/buy-now-pay-later-statistics/">statistics</a>,<ul><li>Three-fifths of customers have used BNPL&nbsp;in the past.</li><li>As of April 2021,&nbsp;46% of people have an&nbsp;active BNPL agreement.</li></ul> <img src="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/BNPL_vs_Credit_Card_usage_28ef48289e.webp"> &nbsp;<h2>Are you considering a BNPL plan? Make sure you know that…</h2> Not all BNPL plans are the same. Every company has its rules and regulations, but they all generally work the same: &nbsp;<ul><li>You place an order with a participating retailer and choose the&nbsp;<a href="https://www.cashewpayments.com/shop/">shop now pay later</a> option during checkout.</li><li>If you're approved (which usually happens instantly), you put down a percentage of the total cost.</li><li>You then pay off the balance in a series of interest-free installments; at no additional cost.</li><li>The installments will be automatically deducted from your debit card or credit card.</li></ul>&nbsp;<h2>Why is BNPL so successful?</h2> Buy now pay later (BNPL) services have become trendy due to the absence of interest, unlike what you get with a credit card. Also, short-term financing companies like cashew support you in making responsible financial purchases so you don't have to worry about affecting your credit score.&nbsp;<h2>Is BNPL better than credit cards?</h2> Have we already grown accustomed to paying with our credit cards at a later date? Sure have! But to answer the question, we need to figure out how credit cards and buy now pay later (BNPL) options vary. The key difference is that you can use your credit card almost anywhere and with any store, while BNPL can only be utilized with affiliated vendors they've partnered with. &nbsp;<h2>How do credit cards work?</h2> Credit cards enable you to take out a loan from the issuer to purchase items and services. Once you've purchased something, you have the option to pay the amount back all at once or in monthly portions.&nbsp;You'll be charged interest if you don't pay off the balance.&nbsp;Additionally, you can spend up to a certain limit with the card. So, what other contrasts are there between these two payment methods?<h2>BNPL vs. Credit Cards – How is BNPL different from credit cards?</h2> If you're choosing between a buy now, pay later option and a credit card, consider this list of differences between the two. Since the BNPL approach comes with plenty of perks,&nbsp;credit cards also offer some advantages that make them an attractive option as well. Of course, there are downsides for both and the following list can help you make the rightest decision for your wallet.&nbsp;<img src="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/Pros_and_cons_of_BNPL_and_Credit_card_15eb65936d.jpg" alt="Pros and cons of BNPL and Credit card" srcset="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/thumbnail_Pros_and_cons_of_BNPL_and_Credit_card_15eb65936d.jpg 134w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/small_Pros_and_cons_of_BNPL_and_Credit_card_15eb65936d.jpg 429w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/medium_Pros_and_cons_of_BNPL_and_Credit_card_15eb65936d.jpg 644w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/large_Pros_and_cons_of_BNPL_and_Credit_card_15eb65936d.jpg 859w," sizes="100vw">&nbsp;<h2>All in all…</h2> Purchase the items you want now and pay later with payment plans. BNPL is a great way to purchase items online or in-store with minimal hassle and often without interest fees. These installment loans at the checkout can be the perfect solution for those who face any difficulties getting the green light for a traditional credit card due to insufficient credit or a low score. Paying BNPL loans on a regular basis is essential to protecting your credit score; having a credit card is also beneficial in certain circumstances. Think about when you need to book a flight ticket or reserve a hotel room - having a credit card in hand will definitely help!<h2>The decision is yours. Choose wisely!</h2> Millennials and Gen-Zs are more likely to go for the BNPL to adhere to the fast-paced lifestyle and futuristic ambitions, yet limited cash resources. According to&nbsp;<a href="https://www.retaildive.com/news/gen-z-millennials-buy-now-pay-later-holiday/633906/#:~:text=The%20survey%20found%20that%20almost,they're%20low%20on%20cash.">Retail Dive’s survey</a> in Oct 2022,&nbsp;Gen Z is the most likely to take advantage of BNPL services during the holidays, with nearly half of them (48%) expressing their intention to do so. Millennials follow this at 47%, Gen X at 40%, and a mere 14% baby boomers.&nbsp;<img src="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/buy_now_pay_later_penetration_be037ff39e.webp"> &nbsp;The ‘buy now, pay later’ plans might be the right choice for you if you have learned about the&nbsp;<a href="https://www.cashewpayments.com/blog/the-art-of-managing-your-budget-with-bnpl/">art of correctly managing your budget.</a>&nbsp;Download the&nbsp;<a href="https://apps.apple.com/gb/app/cashew-shop-now-pay-later/id6443653192">cashew app for IOS</a> and&nbsp;<a href="https://play.google.com/store/apps/details?id=com.cashewpayments.mobile&amp;hl=en&amp;gl=US&amp;pli=1">Android</a>, and start splitting your payments with&nbsp;cashew. &nbsp; &nbsp;

This blog pinpoints the differences between BNPL & credit cards and shows you the pros & cons of each method while helping you manage your money & choose the right plan for you.

Choose your plan: BNPL vs. credit cards

shop now pay later guide

&nbsp;For all the shopaholics, ready to take your shopping game to the next level? Well, have no fear because&nbsp;buy now, pay later (BNPL)&nbsp;services are here, and they have been recently taking the e-commerce world by storm, and for a good reason. But what exactly is BNPL, and how does it work? And does it live up to the hype?&nbsp;In this guide, we'll break down the ins and outs of&nbsp;BNPL and how you can use it to your advantage, so you can decide for yourself if this is a payment method that works for you.&nbsp;So if you're looking for a way to transform your online shopping experience, what a better way to do so than diving into the world of&nbsp;<a href="https://www.cashewpayments.com/">cashew</a>’s BNPL?<h2> What is shop now, pay later?</h2> Shop now, pay later is a payment method that allows you to make purchases without having to pay the full amount upfront. Instead, you can spread out the cost of a purchase over 3, 6, or 12 installments, typically over a few weeks or months, and with no interest or low-interest rates, which makes it an attractive alternative to other payment options.&nbsp; It’s an excellent alternative for those who want to make larger purchases but don't have the budget to cover it all at once; this means you can finally snag those high-ticket items you've been eyeing without breaking the bank! The use of this&nbsp;payment method has increased significantly over the years, going from being used every year by only a small percentage of the population to be used globally by millions of people in nearly every type of transaction, gaining popularity across different categories, including fashion, entertainment, travel, and more.&nbsp;<img src="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/ezgif_com_gif_maker_5_fc9b0cb443.webp" alt="ezgif.com-gif-maker-5.webp" srcset="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/thumbnail_ezgif_com_gif_maker_5_fc9b0cb443.webp 245w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/small_ezgif_com_gif_maker_5_fc9b0cb443.webp 500w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/medium_ezgif_com_gif_maker_5_fc9b0cb443.webp 750w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/large_ezgif_com_gif_maker_5_fc9b0cb443.webp 1000w," sizes="100vw"><h2> How does this service work?</h2>&nbsp;It's simple. We provide you with two&nbsp;<a href="https://www.cashewpayments.com/ways-to-pay/">ways to pay</a> at cashew. Let us break it to you in a few steps If you’re shopping online:&nbsp;<ul><li>Enter your payment information when you go through the checkout process on one of our featured stores' or&nbsp;<a href="https://www.cashewpayments.com/shop/">merchant partners'</a> websites.</li><li>Select Pay Later as the payment method.</li><li>Choose the duration of the payment plan that is right for you. (In 3, 6, or 12 installments)</li><li>Make your payment, and you're all set!</li></ul>&nbsp;<img src="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/Buy_now_pay_later_online_5fb82709ce.webp" alt="Buy now pay later online" srcset="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/thumbnail_Buy_now_pay_later_online_5fb82709ce.webp 245w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/small_Buy_now_pay_later_online_5fb82709ce.webp 500w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/medium_Buy_now_pay_later_online_5fb82709ce.webp 750w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/large_Buy_now_pay_later_online_5fb82709ce.webp 1000w," sizes="100vw"> If you’re shopping in-store:&nbsp;<ul><li>Pick up the items you want to buy</li><li>Scan the shop now, pay later barcode in-store, and then you’ll be able to choose from one of our payment plan options&nbsp;</li><li>Make your payment, and you’re done!</li></ul> <img src="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/ezgif_com_gif_maker_6_b341cd5ae8.webp" alt="How can I buy in installments in-store" srcset="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/thumbnail_ezgif_com_gif_maker_6_b341cd5ae8.webp 245w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/small_ezgif_com_gif_maker_6_b341cd5ae8.webp 500w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/medium_ezgif_com_gif_maker_6_b341cd5ae8.webp 750w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/large_ezgif_com_gif_maker_6_b341cd5ae8.webp 1000w," sizes="100vw"> &nbsp;<h2>Can BNPL affect your credit card score?</h2> Using BNPL services can have an impact on your credit score, but it ultimately comes down to how responsible you are with your payments.&nbsp;<a href="https://support.cashewpayments.com/hc/en-us/articles/4406061035921-What-happens-if-I-miss-the-payment-on-my-due-date-">If you miss a payment</a> or are late on a payment, it could negatively affect your score. On the flip side, making your payments on time can actually improve your score. So, it's important to be mindful of your payments and due dates. &nbsp;<h2>What are the pros and cons of BNPL?</h2> When it comes down to using shop now, pay later&nbsp;as a payment method, it is important to consider the pros and cons; that’s why we've outlined some of the key advantages and disadvantages so that you can make an informed decision on whether it’s right for you. <img src="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/ezgif_com_gif_maker_7_5e19d9f9f3.webp" alt="Pros and cons of BNPL" srcset="https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/thumbnail_ezgif_com_gif_maker_7_5e19d9f9f3.webp 134w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/small_ezgif_com_gif_maker_7_5e19d9f9f3.webp 429w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/medium_ezgif_com_gif_maker_7_5e19d9f9f3.webp 644w,https://strapi-cms-asset.s3.eu-west-1.amazonaws.com/large_ezgif_com_gif_maker_7_5e19d9f9f3.webp 859w," sizes="100vw"> &nbsp;<h2>The pros of shop now, pay later</h2>&nbsp;Here are just a few of the many benefits of using BNPL:<ul><li>Flexibility:&nbsp;You can enjoy more flexibility when making your purchases as using BNPL gives you greater control over your budget and helps to manage the financial commitments you take on. With cashew, you can choose to spread the cost over multiple installment duration plans from 3, 6, and up to 12 interest-free installments, depending on your needs and preferences.</li><li>Budget-friendly payments:&nbsp;This payment method allows you to spread the cost of your purchase over a number of manageable installments, so you can&nbsp;<a href="https://www.cashewpayments.com/shop/">shop</a> to your heart's content without worrying about the financial strain of a one-time payment.</li><li>No-interest or low-interest rates: Yes, you read that right! You can now say goodbye to hefty interest charges as many&nbsp;BNPL services offer no interest or low-interest rates, making your purchases more cost-effective and helping you keep those finances in check.</li><li>Easy and fast approval: Applying for a BNPL payment plan is a breeze! You can get approved in a matter of minutes, all you need to do is pass a simple&nbsp;<a href="https://support.cashewpayments.com/hc/en-us/articles/4406387803665-Eligibility-check-">eligibility check</a>, and the best part is that you don't need to undergo a credit check or provide proof of income. &nbsp;</li></ul><h2>The cons of shop now, pay later</h2>&nbsp;While BNPL has its benefits, it's not without its drawbacks. Here are a few potential cons to keep in mind:<ul><li>Temptation to overspend: Shop Now Pay Later can make it all too easy to overspend. So if you’re not careful with your budget, it can be tempting to buy items that you may not be able to truly afford.&nbsp;</li><li>Late fees and interest charges:&nbsp;While many&nbsp;buy now pay later services offer no interest or low-interest rates, if you miss a payment, you may be subject to late fees or higher interest charges.</li><li>Limited options: Not all retailers offer BNPL as a payment option. Furthermore, some retailers that do offer BNPL may only offer it on certain items.</li></ul> But, as long as you use Shop Now, Pay Later responsibly and understand the terms and conditions of your plan, you can enjoy the<a href="https://www.cashewpayments.com/blog/benefits-of-bnpl-for-businesses-1/">&nbsp;</a>benefits without having to worry about the drawbacks.&nbsp;So shop smart, stay on top of your payments, and enjoy the thrill of shopping now with cashew. For a better experience, download the<a href="https://apps.apple.com/gb/app/cashew-shop-now-pay-later/id6443653192"> cashew app for IOS</a> and<a href="https://play.google.com/store/apps/details?id=com.cashewpayments.mobile&amp;hl=en&amp;gl=US&amp;pli=1"> Android</a>. And if you still have any questions or concerns regarding your BNPL account, then we highly recommend checking out our&nbsp;<a href="https://support.cashewpayments.com/hc/en-us/categories/4406352056721-Customer">customer support FAQs</a> or contacting our friendly customer service team. &nbsp;

Looking for a payment option that won't break the bank? Discover the world of BNPL and learn how to use this payment option to your advantage with cashew.


Cashew Payments

Feel the financial freedom of flexible payments

Get the app

Feel the financial freedom of flexible payments

Get the app

Manage your

money

payments

bills

rewards

with cashew

Financing

Payments

Hub

Explore more with cashew

Check out the new cashew blog!

Got any questions? We're here to help