payment methods paylater on e-commerce platforms is increasing among the people of Indonesia.
Some e-commerce platforms even promote the paylater payment method as the right choice in times of pandemic.
Not infrequently e-commerce platforms issue special promos and discounts for paylater payment methods.
Basically, the paylater system is basically similar to a credit card .
Users will be given a loan limit by the service provider for shopping.
However, there are some important differences between paylater and credit card systems that you need to know.
Well, this time the The Newbie team will share 5 differences between paylater and credit cards . Come on, see more.
1. Registration Process
PayLater registration is easier and more practical than using a credit card.
Because the registration and verification process can be done online.
This can save time and make it easier for users because the documents needed are digital documents.
Meanwhile, applying for a credit card takes longer because the user has to go to the selected bank office directly.
Then, the required documents are also more than the paylater .
Later, the bank will also sometimes conduct interviews to determine whether the user deserves to have a credit card or not.
2. Loan Tenor
Paylater and credit cards have various tenors, depending on the service provider.
However, the installment tenor offered by the paylater is shorter than the credit card.
In general, paylater services have a maximum tenor of 12 months, while credit cards have a longer term of 36 months.
3. Interest
Paylaters have higher interest rates than credit cards.
In general, paylater services have an interest rate of around 2.9%.
However, there are also paylater services that do not apply interest but use a service fee for each usage limit.
For credit cards, the maximum interest applied from July 2021 is 1.75% for all banks in Indonesia.
4. Consumption
The use of PayLater is limited to digital transactions only on e-commerce platforms.
Meanwhile, credit cards have a much wider scope of use.
Credit card users can use Kartujya to shop online or offline.
5. Loan Limit
Credit card loan limits are generally larger than paylaters.
The amount of the credit card loan limit is adjusted to the monthly salary slip that has been attached at the beginning of manufacture.
While paylaters tend to have smaller limits, depending on each account.
payment systems Paylater and credit card have their respective advantages.
Before choosing which one is the best, we must review the needs and capabilities that we have.
In addition, we must be wise in using a paylater or credit card so as not to become an overconsumptive person.
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