There are currently many payment methods that you can try. Starting from using cash to pay online, using ATMs and credit cards to pay online, to the latest Paylater.
Simply put, paylater is a payment method based on the concept of “buy now, pay later”. This payment method was initially promoted by online marketplace applications such as Shopee and Tokopedia to enable users to transact. in their apps more easily, but this feature is now available in travel apps such as Gojek and Traveloka.
Even if it’s easy to make but basically This application or feature also has disadvantages. Here are the pros and cons of using paylater:
Advantages of PayLater
1. Facilitate urgent payments
You don’t have money but need to buy daily necessities? Pay using paylater solution with pay using this feature. You can purchase various needs. without having to pay immediately You can postpone payments for the next week or month when you have money.
For example, if you suddenly need a loan when you have no money. pulse paylater platform can be used as an aid
2. Simple and practical
Most payers nowadays come in the form of features provided by online marketplace applications. This means that to access this feature You don’t need to download additional applications. besides that All you have to do is shop and select the paylater feature as a payment method. Easy, right?
3. Many promotions
To make more users use this payment feature. Online marketplace applications generally offer benefits in the form of promotions. The promotions offered also vary. From free shipping, cashback, favorite store vouchers, and more.
majority reliable paylater application Provide attractive promotions that users can take advantage of.
4. Increased possible limits.
It’s a little different from a credit card. loan amount payer can increase When you enable the paylater feature for the first time, the online marketplace will impose certain limits based on user criteria. If users can make loan principal and interest payments on time and consistently There is a possibility that the installment limit will increase and can be used to buy more expensive products.
Disadvantages of PayLater
1. The interest rate is quite high.
Like other credit lines, paylater also uses the concept of interest. It pays a small amount of interest when the user pays the invoice. Even if the bill is paid on or before its due date. This is slightly different from a credit card.
for credit card The customer is asked to pay interest only if he fails to pay the bill by the due date. In addition, the payer’s interest is relatively higher compared to a regular credit card.
2. There is a late fee.
In addition to charging interest Users are also required to pay a late repayment fee if they fail to pay back their loan on time. The amount of this late fee varies depending on the application. For example, Shopee imposes a maximum late fee of 5%, which means that If you use a payer for INR 100,000 and make a late payment In addition to interest You will also have to pay a late payment fee of INR 5,000.
3. Affect credit score in SLIK
You need to know that all statutory loans in Indonesia are recorded in an integrated system known as the Financial Information Services System, formerly known as the Financial Information Service System. BI auditThis system, abbreviated as SLIK, gives you a credit score based on your ability to repay the loan. Be it in the form of a mortgage, KTA, credit card, P2P lending or payer.
This means that if you frequently pay late, you may lose money. As a result, you’ll find that applying for other forms of credit is not a good idea. Including banks is difficult. Sure, this credit score can be whitened, but the process laundering credit score still takes time
4. Create a lavish lifestyle
The fourth downside of using paylater is creating a lavish lifestyle. Easy to use features as well as indirect incentives to make frequent purchases in small amounts. But often the use of Paylater indirectly creates extravagant lifestyles and indebtedness habits for users.
However, the payer still owes. in general financial planning strategies Debt in any form should not exceed 30% of income, so the use of payees must be limited.
5. Security risks of personal information
Just like applying for a credit card at a bank. You will be asked to upload several important documents such as KTP when activating the payer feature. These important documents are absolutely necessary to view your previous credit history. However, it is necessary to limit the upload of personal data to online applications. The reason is that until now the problem of personal data leakage Individuals are still prevalent in Indonesia.
Is PayLater worth using?
Paylater features and applications are the latest innovations in payment methods that should be implemented. But must not be stuck and restrict the use of the service. Here are some things you can do to limit the use of this feature:
- Sorting out needs vs wants. Before using this feature Think first about whether the item you are buying is a need or a need. If you want or need something you don’t need to buy now. don’t buy it
- Sort payment methods. Even if you are still shopping. Make sure you select the correct payment method. If you have a mobile banking or e-wallet balance, use the funds in that account. If the money is not enough, it can be postponed, then postponed.
- pay bills on time. If you use Paylater to buy urgent needThen make sure to pay your loan bills and interest on time. because there are fines for late again and Compounding effect which may threaten you if you already paid the bill
- Write the name of the payer and make sure the total does not exceed 30% of the income.. This is important to prevent you from getting into too much debt. Especially the debt in the form of the payer. The reason is that the 30% figure should cover all types of debt payments. From credit card bills, mortgages, relative loans, and so on, keep in mind that paying late may prevent you from accessing other methods of borrowing, including loans you think are very important to obtain.
- To control yourself, use only one application.. As mentioned above The travel application now also has a pay later feature. Because for companies This feature allows them to earn additional income in the form of interest. while maintaining smooth cash flow
However, for users, using paylater in each provider’s application is like having multiple banks or credit cards at once. So use the paylater feature in one application to avoid debt accumulation.
Any form of debt needs to be dealt with properly. because the existence of debt conducive to current transactions But debt remains a financial burden in the future.