Buy Now, Pay Later: Transforming shopping amidst high inflation and interest rates

Any credit card holder in Pakistan can purchase anything today and pay for it over a 10-month period from Alfamall

 

People have been grappling with skyrocketing inflation with our wallets purchasing power going down. Businesses are feeling the squeeze, consumers are tightening their belts, and economic growth? The persistent surge in inflation rates has eroded the purchasing power of individuals and households making necessary purchases beyond their reach.

 

 

 

 

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As Pakistan endeavours to navigate these difficult times, foster sustainable economic recovery, and improve the well-being of its citizens, the banking sector has a huge role to play in introducing products and services that simplify and improve people's lives.

We have aquainted yourself with this magical thing: Buy Now, Pay Later (BNPL). Apparently, when it comes to shopping, BNPL has been the talk of the town in Western, Middle Eastern, and Southeast Asian economies. With BNPL, shopping is on steroids, available on all big brands like Apple, Amazon, Walmart, and Target.

And guess what? Pakistan has finally been blessed with its arrival. Let the shopping spree begin!

Bank Alfalah recently introduced Alfa BNPL, which offers financial flexibility and empowers consumers to make informed purchasing decisions in turbulent economic times. Here is how it works:

Alfa BNPL’s Buy Now Pay Later allows credit card holders nationwide to buy anything today and pay for it later in up to 10-month instalments from Alfamall, Bank Alfalah’s e-commerce marketplace accessible via the website and their banking app.

To avail of this facility, one can also visit their Lifestyle Branch at Zamzama Karachi and Islamic Premier Branch at Sky Tower in Clifton. Or they can visit their website at www.bankalfalah.com/islamic/alfa-bnpl/

The best part is Bank Alfalah ensures that products available through Alfa BNPL come with no additional processing fees, hidden charges, or commissions.

What are the top five things you need to know about the product:

1. Flexible Payment Plan

One of the standout features of Alfa BNPL-Buy Now Pay Later is its flexible payment schedule. The Bank only deducts monthly instalments on their due dates, all while keeping your credit card limit intact.

2. Transforming Your Purchase Experience

In today's fast-paced world, convenience and flexibility are paramount when it comes to managing finances and making purchases.

In today's consumer landscape, imagine this: You plan on purchasing a smartphone for PKR 300,000 but are worried about reaching your credit limit. That's where Alfa BNPL is a game-changer in digital banking, promising to transform how you shop. With a credit limit of PKR 500,000, you can now own the phone with a simple 10-month payment plan.

Here's how it works: Make an initial payment of PKR 30,000, and the smartphone is yours immediately. The remaining amount can be paid in installments, with no additional markup fees.

Alfa BNPL protects your credit limit. While you enjoy your new gadget, the rest of your credit remains free, giving you the freedom to make more purchases.

Muhammad Yahya Khan, Chief Digital Banking Office said:

“lf a Buy Now Pay Later feature is reshaping the digital banking landscape by offering consumers the freedom to shop now and pay later in instalments.

Bank Alfalah is extending a solution to all credit card holders nationwide, regardless of their bank affiliation. With its flexible terms and widespread accessibility, Alfa Buy Now Pay Later is paving the way for a more inclusive and user-friendly shopping experience.

3. Platforms and Products

Credit card holders can browse and purchase products from a diverse selection of categories, including home appliances, electronics, smartphones, and lifestyle items, at any time by visiting the website https://alfamall.com/Alfa-BNPL.

Customers have the option to explore BNPL stores at Bank Alfalah branches in Karachi, including the First Digital Lifestyle branch at Zamzama and the Islamic Premier branch at Sky Tower in Clifton. Both branches showcase various products across different categories, which can be conveniently purchased using the available digital screens or via the website https://alfamall.com/Alfa-BNPL or https://www.bankalfalah.com/islamic/alfa-bnpl/.

4. Merchants and Customers

The introduction of Buy Now Pay Later (BNPL) facilities has been a game-changer for countless merchants, driving substantial increases in sales and expanding their customer reach exponentially. Furthermore, when a bank acts as an intermediary, merchants receive instantaneous payments as soon as the product is sold through the app or in-store, eliminating any delays in cash flow.

This dynamic arrangement not only ensures merchants receive prompt remuneration but also enables customers to conveniently spread their payments over time. It's a win-win scenario where merchants enjoy seamless transactions, and customers benefit from the flexibility of easy instalments, ultimately fostering stronger relationships and mutual satisfaction.

 

5. Eligibility at zero documentation

Alfa's Buy Now Pay Later feature is exceptionally easy to use, requiring no paperwork and eliminating waiting periods. This rapid decision-making speeds up transactions and transforms the entire banking experience. It showcases the remarkable shift from traditional to digital banking, providing users with unmatched convenience and efficiency while shopping online.

Buy Now Pay Later (BNPL) can emerge as a powerhouse for economic advancement, igniting a surge in economic growth, consumer spending, and financial inclusivity in an economy where cash is still the king. Despite Pakistan's limited credit card user base, currently standing at only 2 million, BNPL has the potential to transform the landscape by attracting more individuals into the ecosystem of digital transactions.

The shift towards digital payments not only fosters greater convenience and accessibility for consumers but also propels the economy towards a more digitally-driven future. As BNPL gains traction, it acts as a pivotal force in expanding the credit card user base, thus fueling the transition towards a more vibrant and robust digital economy.