Hello How are you all? Are you feeling energized this morning? Honestly, I don’t have that much energy today.
If anyone is feeling a bit lazy, then I’m here with another topic.
Do you know what the “Buy Now Pay Later” feature is? Buy now, pay later (BNPL) is a type of short-term financing that allows you to make purchases and pay for them over time, usually with no interest.
In India, we have some popular BNPL apps like Simpl, Lazypay etc. I have used those out of curiosity and guess what? it turned out really well.
Are you using any BNPL right now? What’s your experience with that? Would you recommend it? Should Revolut also think about it?
Here in Brazil we do this directly on the PoS, buying in installments directly on the credit card.
So it automatically spread on the next bills.
Example: Payment 1/3 R$ XXX,XX
Usually stores offers it without interest (some time up to 3 installments, but could go up to 12, normally).
But if you have the store credit card, their installments plans could go up to 36 or 48 months.
(Usually people do this longer plans when buying furniture for the whole house, like just got married and is buying kitchen furniture, freezer, refrigerator, bedroom, sofa)
The maximum I did was a big refrigerator in 12 installments without interest direct from the manufacturer website (was cheaper than the local store and also had free shipping)
Here usually the interest is included on the price so it can be advertised in 12 installments without interest but if you ask and buy paying all at once you get a discount.
Our credit card have a higher interest fees (mine is 15% monthly) if we don’t pay on time, but usually if you call the card/bank and asks to pay it by installments you got a lower (3% monthly fee).
I think it’s dangerous to make that feature accesible especially for younger people. It’s easy to pile up debt that way. It happened a lot with Klarna in Germany.
What happens if you become unable to repay the sum of all financed transactions.
I think you should base the limit of BNPL on a factor of the income. e.g. 50%-100% of the monthly income.
The limit should be editable by the user. In case this is SCHUFA relevant you could deliberately set a small limit. I also think you should be able to configure the rate at a later point especially if we would need to pay interest.
I totally agree with you @moritzroessler. In India, they set a certain limit in every BNPL apps which can be increased later automatically based on your usage. It really helps a lot.
I know that BNPL has been initiate in different European country but not in France. Do you know when it will be ?
Because PayPal is wining on this type of service and if is on the pipes you will be the first in France to do this. All the traditional banks are you proposing pay at the end of the month but it’s like a debit or credit card.
Thank you for sharing with us that you have interest in our BNPL product. Unfortunately, we don’t have any definite timeline till now. Once this will be launched, we will let our users know about it. Till then, please bear with us.
In the UK I used to use Monzo Bank. I absolutely loved it. Now I’ve just moved to Spain with my wife and we wanted something similar to Monzo, so we moved into Revolut and so far it’s really nice. Even better. The one single thing that we miss is the Flex Payment option that Monzo has where you can flex your payments in 3 installments free of charge. With that feature Revolut would be the best banking app I’ve ever used.
Revolut doesn’t have that option yet, so I can only speak how Monzo does it. Monzo let’s you split a payment in three installments at 0% interest rate. For longer installments they’ll have a very expensive interest rate scheme.
Then at specific times of the year, such as Christmas, they’ll extend the number of installments you can split a purchase at 0% rate to 6 or 12 installments.
That’s incorrect. @Guillermo is a customer of Revolut in Spain. So the legal entity providing services to him is Revolut Bank UAB, a fully licensed bank. Revolut Bank UAB offers credit cards in some regions for example. BNPL is a product they could offer without any restrictions within the EEA.
To be a bank, Revolut requires a banking license from each region it operates in. In the European Economic Area (EEA), Revolut Bank UAB, is authorised by the European Central Bank and the Bank of Lithuania and is a bank in 30 EEA countries.
The Revolut Group holds many licences and authorisations globally, giving us the power to provide you financial services including e-money account holding, stock trading, virtual currencies, insurance, and more. In 2023, we rolled out local IBANs — or international bank account numbers — in Spain, France, and Ireland, with many more planned, so customers can use Revolut as their main accounts for core everyday banking needs.
In the UK, Revolut doesn’t yet have a banking licence. We’re working on getting a UK banking licence, and we’ll share the news as soon as we do. We have covered an article here regarding this matter - Can you use Revolut as a bank account?
In the Netherlands, Dutch people are totally scared of credit cards (credit, not debit), and from my experience, a typical Dutch person would never buy something they don’t have money for - excepted things like (new) cars, property, of course.
Although I think in a capitalist society, customers must be able to spend their money whichever way they like (even if they haven’t earned it yet), I admire the way people in the Netherlands don’t like to get into debt.
Totally opposed situation (like already mentioned here) in Brazil, where people keep spending the money they don’t have, since there are so many ways to pay for things and businesses make everything appear so “easy”
How are you all? Are you feeling energized this morning? Honestly, I don’t have that much energy today. 
Buy now, pay later (BNPL) is a type of short-term financing that allows you to make purchases and pay for them over time, usually with no interest.
