Cash Now Pay Later vs Buy Now Pay Later

There are clear benefits for both BNPL and CNPL. They both have fixed payment schedules, a more simple checkout process and zero-interest options that are super appealing to you. But there’s a lot more to BNPL and CNPL than just that. So, let’s dig a little deeper.

Cash Now Pay Later Buy Now Pay later
While Buy Now Pay Later (BNPL) has become the buzzword of the payments industry in the Covid-19 era, have you heard of Cash Now Pay Later(CNPL)? If you haven’t you are living under a rock! No worries, that’s why we’re here, to help you understand the nuances of BNPL and CNPL and what will work best for you.

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There are clear benefits for both Buy Now Pay Later and Cash Now Pay Later. They both have fixed payment schedules, a more simple checkout process and zero-interest options that are super appealing to you. But there’s a lot more to BNPL and CNPL than just that. So, let’s dig a little deeper.

What they are

The concept of Buy Now pay Later is pretty simple. You as a customer get to complete an online transaction and instead of paying the total amount upfront, you can pay in installments over time — quite literally buy now and pay later.

CNPL is when you get cash in hand, not just buying options which is the case with BNPL.CNPL with Line allows you, the user, to have instant access to cash for your purchases/bills/emergencies and pay it back later

Here are all the benefits of Cash Now Pay Later with Line.

How they work 

Buy Now Pay Later 

BNPL companies are third-party organizations that team with merchants to offer an installment option when you make an online transaction. It will take 2-to-4 payments that are automatically withdrawn from your debit card account. You can even use a credit card under some plans.

While you’re in process of checking out an online purchase, you are obliged to give the BNPL company your name, address, phone number and birth date. The catch here is that the BNPL service provider won’t do a credit check, instead, you’ll be approved or rejected based on an algorithm.

And these algorithms vary from provider to provider.

Cash Now Pay Later

With Cash Now Pay Later, you get the cash when you need it. And the best part is you can pay when you can. Confused? We’ll explain. Once you subscribe to Line you’ll see what plans are available to you and a breakdown of what your payment plan will look like. The plans are categorized into three groups—small, medium and large. And each group has a plan and each plan has been built bearing in mind what your needs/potentials needs would be. Want to know more about this, take a look!

You can sign up for an account with Line without a credit check. No kidding! When you avail CNPL with Line it won’t impact your overall credit score as well. The payback plan provided by Line is easy. You can even set up automatic payments for you to know what will be taken out of your account during your pay period.

What you can use them for?

The most significant benefit of BNPL is that you have the option of taking home items that haven’t been fully paid for. But with CNPL you get to pay off up front and take your most needed item home.  

With BNPL you essentially get a mini-loan. It’s quick, simple, tempting and sometimes just makes immediate financial sense. But later you have the interest to pay off that can get daunting. That new iPhone might not be something you need, but with BNPL you might just gratify your cravings to show off and make the purchase.

But with Cash Now Pay Later, Line offers fast cash. The money you receive is interest-free. You can return the money when you have it over time without any hidden charges. In case of emergencies, CNPL pays off almost immediately. CNPL also comes in handy if you’re behind on your bills and you need money to pay them off. Your chunk of cash from CNPL is more like your financial lifeline.

How to be financially wise 

BNPL is out there tempting you to make an absolutely unnecessary purchase. No, we’re not telling you to avoid buying coffee when you need one. But when shopping if you find yourself wanting to buy something you don’t need, don’t buy it! Even if it has BNPL offers. Else you’ll have to bear the brunt of paying for it every month until it’s been paid off.

CNPL on the other hand doesn’t directly promote buying options. So, if you make an unnecessary purchase, you are to be fully blamed for your decision. Think twice before you do. You might also want to go through your dues and see if you could put CNPL to some good use. Always pay attention to the nagging voice in your head that is telling you to pay off your dues and not buy that expensive handbag. 

This page is purely informational. Line does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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