Revolut Pay Later - techbuzzireland

This season is when many of us get ready for big purchases and have to dip into savings or complex credit options to make ends meet. However, some of the savvier consumers are using instalments payment products for Black Friday to make use of the cost-effective time to make a purchase.

Revolut Pay Later, designed to focus on responsible credit and affordability, is offering a 45 day fee-free promotion for new users to cover Black Friday, Christmas and January shopping. New Pay Later users will have their first 45 days free of any fees. That means customers can do their holiday purchases without paying anything on fees or charges. Additionally, every 3rd Pay Later purchase above €30 is fee-free for existing Pay Later customers.

Rob Mooney, Irish credit expert, explains that consumers who use instalments payment products for Black Friday are often the savvier shoppers. He says these products can be used as a tool to manage money more efficiently and avoid unmanageable debt. Especially in the lead up to Christmas, using Pay Later to take advantage of the discounts available on Black Friday and Cyber Monday allows customers to save money by getting discounts online, and spreading the cost over 3 instalments with Pay Later.

Rob explains that Pay Later provides a convenient way for consumers to spread the cost of purchases over several months. Paying by instalment assists consumers’ budgeting without resorting to loans, going overdrawn or putting the expense on credit cards – which all have high, often complex repayment terms, interest rates and penalty fees. Using Pay Later, consumers can also take full advantage of Black Friday – without dipping into savings.

Rob Mooney, Revolut Credit Manager, says, “Pay Later helps me navigate the most cost-effective time to make a purchase, gives me greater financial control and helps me better manage my cash flow. By enabling me to spread the cost of products at more transparent and economical repayment rates – and therefore spend wisely in more calculated ways, I can take advantage of Black Friday for Christmas shopping. For example, I can buy a new TV, and then spread that cost over several months.”

Ways that Pay Later can be used as a money management tool:

 

  • Managing Cash Flow – You can use Pay Later to manage cash flow by controlling the outflow of money. For example, if you’re looking to get yourself a new laptop this Black Friday, but you don’t get paid for another 2 weeks, Pay Later can help manage your cash flow as you can pay back your expenses over time.

 

  • Budgeting – As Pay Later communicates a transparent affordability limit, consumers know how much is available to them so they can plan and budget using this limit. Having visibility of your spending limit means you know exactly what you can spend, you won’t be rejected at point of sale and left disappointed.

 

  • Complementing Your Budget – Large purchases can throw your budget off. Pay Later can help ease this burden by spreading the load of large purchases across several months to avoid dipping into your savings. Further, it lets you hold on to your money for longer (and, in turn, maintain investments and current accounts).

 

  • Spending at the right time – Similarly to ‘large purchases’, there are some items that are cheaper to buy at certain times of the year. For example, Black Friday could be a good time to purchase toys for birthdays over the next year. Using Pay Later can help you navigate the most cost-effective time to make a purchase.

As the number of buy now, pay later companies entering the market continues to grow, consumers will be presented with an ever-increasing array of repayment options. Those who choose a robust and responsible product that provides an affordable credit limit rather than granting credit on a purchase-by-purchase basis will be better set for financial success. While some providers may be tied into specific merchant partnerships, those which use pre-approved credit limits (like Revolut Pay Later) give consumers more spend management options.

Revolut Pay Later checks customer affordability by linking to customers’ existing bank accounts through Open Banking. Revolut will assess customer suitability and affordability for ‘Pay Later’ through an underwriting process. The current maximum credit limit is €499, but each customer will have their own bespoke limit as decided by Revolut’s credit assessment.

The new product also features built-in safeguards to check that users can afford their Pay Later limit. Unlike other buy now pay later providers, Revolut performs a more robust assessment by pre-approving credit limits before transactions are made, rather than making a decision at point of sale whether to allow consumers to make a Pay Later transaction.

By Jim O Brien/CEO

CEO and expert in transport and Mobile tech. A fan 20 years, mobile consultant, Nokia Mobile expert, Former Nokia/Microsoft VIP,Multiple forum tech supporter with worldwide top ranking,Working in the background on mobile technology, Weekly radio show, Featured on the RTE consumer show, Cavan TV and on TRT WORLD. Award winning Technology reviewer and blogger. Security and logisitcs Professional.

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