If you buy something without paying, pick your clothes and take them home. This time “buy before you pay” does not require a credit card or Internet financial products such as Huayao. It uses a payment solution launched by apparel retail giants H & M and Klarna in the United States and is currently only available at H & M.
At present, H & M has only piloted this program in the United States. The program only applies to Member System is open to users. H & M sees this as a frictionless and flexible checkout method. Users can use the H & M app to complete payments in offline stores and online stores, and they can decide for themselves how and when to pay.
H & M’s North American CFO Stefan Vos Indication :” We are now happy to provide a new payment method for American fashion enthusiasts … Through cooperation with Klarna, we have developed a unique payment solution for us Of fans provide a truly modern shopping experience, no matter where and how they choose to shop. “
To be honest, under the condition that the credit consumption system has been perfected, it is a bit “unclear” for a single retail brand to launch such a product. Imagine the payment scene. After you choose your clothes and walk to the checkout counter, the other party prompts you to pay with their payment methods. After listening to the brief introduction, you find that this credit payment product is not different from your usual ones Would you choose to open a new payment method?
Personally, with the same payment methods, I am unlikely to change my original shopping habits. But if there are incentives for red envelopes or cash reductions, I might be “scented”.
Certainly, choosing a new payment method will also bring new repayment channels, and you will have one more account to calculate. Missing and forgetting are possible. If the use of such products also affects your entire credit system, it is even more serious. But most people may not have this awareness, they will not link daily consumption and credit system.
a survey Found , more than 40% of shoppers are unaware that missing a payment could damage their credit score when using the “buy before you pay” service.
In China, once such financial products go out for credit, it will also make people nervous. Nowadays, whenever new “buy now, pay later” products are launched, some people will specifically ask the question, “Are credits at this meeting?” It can be imagined that once such consumer financial products are credited, they must be widely involved.
Klarna is valued at $ 5.5 billion in a “buy now, pay later” partnership with H & M. After it entered the UK in 2015, 6 million users used its payers to make purchases at 10,000 stores in the UK. Users can pay within one month or split their bills into three to thirty-six months.
Although Klarna claims that each of their businesses is simple and clear, you can hardly see them on its official website to remind you how not paying on time will affect your credit system.
Klarna told This is Money : “We are open to our loan policy and credit authorization process, and we maintain regular contact with our customers to let them know when it is time to complete the payment.”
But if Klarna still hasn’t received the payment after a few months, they will notify the credit bureau that some customers have not paid yet. “At this time, the customer’s credit score may be affected.”
“Buy before you pay” is becoming increasingly popular. Even buying a bottle of mineral water and a pound of pork, you can repay next month. The risk of all this lies in regulatory and credit issues. They let users spend more money that month, but it’s not all free, and they have to pay back next month. Advertisements from retail brands and service providers may prompt users to consume in advance and overspend, all of which have hidden risks.
Young people want to own too many things, they may not be able to stop buying and buying, and once they miss the payment, their credit score may be affected. In addition, “buy before you pay” platforms will face fierce competition, and the technical and financial support of these platforms may not be as deep as we think.
“Buy before you pay” is like a credit card that doesn’t require any qualifications, it’s more convenient to use. Provide simple information, bind your bank card, and you can get hundreds of thousands of free credits. Too low threshold may cause excessive use. When government departments want to include these shopping methods in supervision, not only service providers but also countless overdue users will be affected.
Of the more than 2,000 respondents who participated in the “buy before you pay” survey, one in 10 said that using “buy before you pay” has negatively impacted their credit score. Two-fifths of the interviewees acknowledged that with this payment method, they would spend more than without these plans. More than half of the respondents believe that this payment method has led to an increase in personal liabilities.
Compare the Market’s Treasurer John Crossley said: “The temptation to buy first and pay later is obvious, but these statistics show that such programs are encouraging people to take on more debt than they realize … cannot be on time Paying your bills can damage your credit score and result in a series of unpaid bill records, which can endanger important parts of life, such as buying a house. “
Many of the advertisements of payment service providers that prompt users to buy in advance are aimed at young people, which is even more worrying. The Australian Government is already discussing whether the ” “Buy before you pay” is regulated as a bank loan. British clothing chain Next is also indicated in October This purchase method is dangerous.
From buying clothes online to buying pork offline, everyone may have a spending limit of tens of thousands. With the increase of “buy before you pay” application scenarios, there are more and more things you can take away without spending a penny. But the cost of forgetting to pay or refusing to pay is also high. Shoes and perfumes bought today may affect tomorrow’s mortgage and car loans, which deserves everyone’s more vigilance.
Responsible consumption, timely repayment, and facing lower and lower consumption thresholds, you should also cherish your reputation.