Why credit card payment option is better than By Now Pay Later providers

If you are a merchant, you will come to a moment that you need to provide more payment method for your customers. Some customer will ask you to pay with credit card and some prefer to use Buy Now Pay Later service.

Credit Card (CC) offer relatively lower Merchant Discount Rate (MDR) than Buy Now Pay Later (BNPL) services.

Cost is a major consideration for every business. This means, if the customer do have both options to pay, you better ask the customer to pay with their CC instead of BNPL. You will enjoy better margin.

However, due to stigma about using credit card (easy access to credit causing endless debt), people avoid using CC. Instead, they move to BNPL. Weirdly enough, BNPL is more predatory compared to CC. But, people nowadays seems ok with it. Huh?

So, accepting BNPL can means increasing sales for your business. So, it is better to have more options for customer to pay. But, when it comes to preference, you should encourage the customer to pay with CC instead of BNPL.


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