What is this Myth called BNPL?
The abbreviations simply mean "buy now, pay later" in installment. BNPL is well recognised globally, and is certainly not new in the market. Such purchases can be sold anywhere globally. Right now the Giant companies like FAVE, $PayPal (PYPL.US)$ and $ Apple (AAPL.US)$ are making thriving business by providing the BNPL platform. More so with Covid 19 and the Delta variant pandemic, which further accelerates the trend of buying on-line. This concept of BNPL is gaining popularity among the savvy shoppers, especially among the (Gen Z) group. The allure of this platform are:
1) BNPL provides customers a ready payment minus the use of cash or credit card.
2) Customers are permitted to stagger out their payments in affordable stages.
3) As opposed to credit card payment which need to be settled the following month, BNPL allows the flexibility of a stipulated payment period.
4) If well managed, consumers find BNPL offers a smaller manageable repayments with no interest or hidden fees incurred.
5) It also provides consumers instant assess to the purchased products with no messy account set-up.
The weak link is of course the use of BNPL is hazardous to a consumer who lacks self-discipline to budget his expenses.
Having set aside the pros and cons of the BNPL service, we come to face the question of whether this concept can be applied to leveraging investment? In truth, it is Risky to buy shares and pay later. This trading strategy requires extremely shrewd and vigilant monitoring by the investor to his wealth wallet, in order to ensure profits. Otherwise, he can easily fall into a vicious cycle of debt.
1) BNPL provides customers a ready payment minus the use of cash or credit card.
2) Customers are permitted to stagger out their payments in affordable stages.
3) As opposed to credit card payment which need to be settled the following month, BNPL allows the flexibility of a stipulated payment period.
4) If well managed, consumers find BNPL offers a smaller manageable repayments with no interest or hidden fees incurred.
5) It also provides consumers instant assess to the purchased products with no messy account set-up.
The weak link is of course the use of BNPL is hazardous to a consumer who lacks self-discipline to budget his expenses.
Having set aside the pros and cons of the BNPL service, we come to face the question of whether this concept can be applied to leveraging investment? In truth, it is Risky to buy shares and pay later. This trading strategy requires extremely shrewd and vigilant monitoring by the investor to his wealth wallet, in order to ensure profits. Otherwise, he can easily fall into a vicious cycle of debt.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Syuee : I fully agree that it is risky to buy shares and pay later, especially for Gen Z community.
This BNPL trading strategy requires divine discipline and good self-control in order to benefit from it.
HuatEver : I agree with you that if an investor wishes to apply the BNPL strategy to trading he has to monitor the market very cautiously. Not an easy task.
capper_ : BNPL does not generate interest, which is very beneficial to consumers
HuatLadyOP capper_: This is certainly the plus point of BNPL.
HopeAlways : The consumer has to practise strict self discipline as BNPL can be very tempting.
GTGC : see