American ɽÌÀ¤¹¤ë fights »Ù±ç¤¹¤ë against buy now, »Ùʧ¤¦¡¿Ä¶â later ²ñ¼Ò¡¿·ø¤¤s... by ³«»Ï¤¹¤ë¡¤ÂǤÁ¾å¤²¤ëing its own ¸«²ò¡¿ËÝÌõ¡¿ÈÇ
- ¸ÜµÒs of ·×²è¡Ê¤¹¤ë¡Ë It can ʬÎö¡Ê¤¹¤ë¡Ë »Ùʧ¤¤¡Ê³Û¡Ës into three, six or twelve instalments
- Is it cheaper than using its own credit card? Find out below?
American ɽÌÀ¤¹¤ë has ³«»Ï¤¹¤ë¡¤ÂǤÁ¾å¤²¤ëd its own ¸«²ò¡¿ËÝÌõ¡¿ÈÇ of buy now, »Ùʧ¤¦¡¿Ä¶â later called ·×²è¡Ê¤¹¤ë¡Ë It.?
The new feature for ¸ºß¤¹¤ëing credit card ¸ÜµÒs µö¤¹s them to »Ùʧ¤¦¡¿Ä¶â off ¹ØÆþ¡Ê¤¹¤ë¡Ës ʬÎö¡Ê¤¹¤ë¡Ë into three, six or twelve instalments for a »Ï¤á¤ë¡¤·è¤á¤ë ·îËè¤Î ÎÁ¶â.?
The ¹ØÆþ¡Ê¤¹¤ë¡Ë must be a ºÇ¾®¸Â of ¡ò100, or else put in a »Ï¤á¤ë¡¤·è¤á¤ë ÎÌ of the cash they ¼Ú¤ê¤¬¤¢¤ë on the credit card Á´ÂΤˤ錄¤ë.?
·×²è¡Ê¤¹¤ë¡Ë It: American ɽÌÀ¤¹¤ë has jumped on the BNPL bandwagon, but its new ·×²è¡Ê¤¹¤ë¡Ë It feature does not leave ¸ÜµÒs much better off than just using a credit card
That »Ï¤á¤ë¡¤·è¤á¤ë ÎÌ can be up to 85 per cent of a ¸ÜµÒ's ·îËè¤Î À¼ÌÀ. For example, if in a month a ¸ÜµÒ spent ¡ò1,000 on their card, they could put up to ¡ò850 in ·×²è¡Ê¤¹¤ë¡Ë It.??
American ɽÌÀ¤¹¤ë does not ¹ðȯ¡Ê¤¹¤ë¡Ë¡¤¹ðÁʡʤ¹¤ë¡Ë¡¿ÎÁ¶â Íø±×¡¿¶½Ì£ for using ·×²è¡Ê¤¹¤ë¡Ë It, but ¸ÜµÒs are ¹ðȯ¡Ê¤¹¤ë¡Ë¡¤¹ðÁʡʤ¹¤ë¡Ë¡¿ÎÁ¶âd a ľ¤¹¡¿Çã¼ý¤¹¤ë¡¤È¬É´Ä¹¤ò¤¹¤ëd ·îËè¤Î ÎÁ¶â for the?instalment ·×²è¡Ê¤¹¤ë¡Ë.
This ÎÁ¶â depends how much you are »Ùʧ¤¦¡¿Ä¶âing »Ù±ç¤¹¤ë over how long.?
The Amex ·×²è¡Ê¤¹¤ë¡Ë It calculator on its website assumes your credit card has an Íø±×¡¿¶½Ì£ Ψ of 30 per cent, but you may be ¹ðȯ¡Ê¤¹¤ë¡Ë¡¤¹ðÁʡʤ¹¤ë¡Ë¡¿ÎÁ¶âd ¤¤¤Ã¤½¤¦¾¯¤Ê¤¯ or more depending on your card's APR.?
You can see how much you would have to »Ùʧ¤¦¡¿Ä¶⠻ٱ礹¤ë against how much you borrowed.?
The ÎÌ ¸ÜµÒs need to »Ùʧ¤¦¡¿Ä¶⠻ٱ礹¤ë each month will be inclided in the ºÇ¾®¸Â ͽÄê' ¿Íʪ¡¿»Ñ¡¿¿ô»ú in their American ɽÌÀ¤¹¤ë À¼ÌÀs.?
For example, if you spread a ¡ ò100 balance over 12 months using ·×²è¡Ê¤¹¤ë¡Ë It, ·îËè¤Î ÊÖºÑs are ¡ò9.40 a month, made up of an ¡ò8.33 ·îËè¤Î ·×²è¡Ê¤¹¤ë¡Ë ÎÌ and a ¡ò1.07 ÎÁ¶â, totalling ¡ò112.80.
If you had no instalment ·×²è¡Ê¤¹¤ë¡Ë, the ÉáÄ̤Ρ¿Ê¿¶Ñ¡Ê¤¹¤ë¡Ë ·îËè¤Î card ÊÖºÑ would be ¡ò9.56.
That ¹½À®¤¹¤ës a ·îËè¤Î card ÎÌ of ¡ò8.33 and ÉáÄ̤Ρ¿Ê¿¶Ñ¡Ê¤¹¤ë¡Ë ·îËè¤Î Íø±×¡¿¶½Ì£ of ¡ò1.23, totalling ¡ò114.72.
So the ÎÌ a ¸ÜµÒ can save with ·×²è¡Ê¤¹¤ë¡Ë It is small compared to just using a credit card.
Instalment ·×²è¡Ê¤¹¤ë¡Ës can be »Ï¤á¤ë¡¤·è¤á¤ë up from the American ɽÌÀ¤¹¤ë app, or in an American ɽÌÀ¤¹¤ë ¸ÜµÒ's online account.?
Once »Ï¤á¤ë¡¤·è¤á¤ë up, the instalment ·×²è¡Ê¤¹¤ë¡Ë is automatically ´Þ¤àd in the 'ºÇ¾®¸Â ͽÄê' »Ùʧ¤¤¡Ê³Û¡Ë each month.
How does BNPL work?
BNPL is a borrowing method that µö¤¹s you to make a ¹ØÆþ¡Ê¤¹¤ë¡Ë ·Ðͳ¤Ç a ÂßÉն⠶¡µë¤¹¤ëd by a third party.?
It is °ìÈÌŪ¤Ë used when shopping online and popular providers ´Þ¤à Klarna, Clearpay and Afterpay.
Last week, BNPL µðÂç¡Ê¤Ê¡Ë?Klarna ¶ì¤·¤àd its fifth straight ǯ¼¡¤Î loss ahe ¹¹ð of a possible ³ô¼°»Ô¾ì ̾Êí¡Ê¤ËºÜ¤»¤ë¡Ë¡¿É½¡Ê¤Ë¤¢¤²¤ë¡Ëing, ÃÏ°Ì¡¤Ç¤Ì¿¤¹¤ëing losses of ¡ò190million for 2023, narrower than its ¡ò800million loss in 2022.
You »Ùʧ¤¦¡¿Ä¶â off a BNPL ÂßÉÕ¶â either in several equal »Ùʧ¤¤¡Ê³Û¡Ës or in one go after a ľ¤¹¡¿Çã¼ý¤¹¤ë¡¤È¬É´Ä¹¤ò¤¹¤ëd period. Often the ÂßÉÕ¶â is Íø±×¡¿¶½Ì£ ²òÊü¤¹¤ë¡¿¼«Í³¤Ê for an ½é´ü¤Î period.
As with any borrowing, using BNPL comes with ´í¸±s. Unlike ŬÍѤ¹¤ëing for a personal ÂßÉÕ¶â or credit card, BNPL providers often do not run a credit check on ¸ÜµÒs, meaning ¹¶·â¤ò¼õ¤±¤ä¤¹¤¤ »ÈÍѼÔs and those with a bad credit history could find themselves saddled with even greater ÉéºÄ.
This is ÆÃ¤Ë true for those without a Àµµ¬¤Î¡¿ÀµÁª¼ê income, who may find themselves unable to »Ùʧ¤¦¡¿Ä¶â off the ÂßÉÕ¶â, exposing them to high Íø±×¡¿¶½Ì£ »Ùʧ¤¤¡Ê³Û¡Ës.
What should I watch out for when using BNPL?
One dangerous habit to look out for is using BNPL to »Ùʧ¤¦¡¿Ä¶â for everyday goods, such as your ½µ´©»ï supermarket shop.?
This is because using BNPL Äê´üŪ¤Ë Áý²Ã¤¹¤ës the ´í¸± of ¹ÔÊýÉÔÌÀ¤Î »Ùʧ¤¤¡Ê³Û¡Ës and incurring Íø±×¡¿¶½Ì£.
Gen Z (Ϸǯ¤Î between 11 and 26) and millennials (27 to 42) are four times more likely to take on ÉéºÄ to ²ñ¹ç¡¤²ñ¤¦ rising costs, data from ÃçÇã¿Í Credit Karma shows.?
Losing Àפò¤Ä¤±¤ë of how much you ¼Ú¤ê¤¬¤¢¤ë to BNPL providers, or the dates »Ùʧ¤¤¡Ê³Û¡Ës are ͽÄê, can also be ·Ù¹ð Ä´°õ¤¹¤ës to ºï¸º¡Ê¤¹¤ë¡Ë É餫¤¹¡¿·âÄƤ¹¤ë on using it.
Ricky Bonham, Éû¡¿°ÆÁ¹Ô°Ù ÂçÅýÎΡ¤¡¿¼ÒĹ of American ɽÌÀ¤¹¤ë, said: 'We know our cardmembers value ½ÀÆðÀ, ´Þ¤àing in how they »Ùʧ¤¦¡¿Ä¶â.
'With ·×²è¡Ê¤¹¤ë¡Ë It, our credit card ¸ÜµÒs can now »Ùʧ¤¦¡¿Ä¶â at their own pace, continuing to earn rewards as they do so on everything from a new vacuum cleaner to their next big holiday.?
'As a ¾¦Çä¡¿»Å»ö µ¬À©¤¹¤ëd by the ºâÀ¯¾å¤Î ¹Ô°Ù¡¿¹Ô¤¦ Åö¶É, we're also delighted to be launchi ng an instalment ·×²è¡Ê¤¹¤ë¡Ë that ¿½¤·¹þ¤à¡¿¿½¤·½Ðs transparent ÎÁ¶âs and no hidden ¹ðȯ¡Ê¤¹¤ë¡Ë¡¤¹ðÁʡʤ¹¤ë¡Ë¡¿ÎÁ¶âs.'
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