Hey everybody. What’s up. It’s Justin live from B2B Vault, the payment technology podcast with your host Allen Kopelman and we’ll be providing you educational information about payments, business, FinTech, decentralized finance, and the technology businesses use in today’s world. In today’s podcast. We’re going to dive back into Buy Now Pay Later. It’s one of those topics. It’s one of those things that has just been constantly in the news, like nonstop. There, people are different. Banks are starting to offer it. Larger companies are offering it more and more.
You’re starting to see it on different types of eCommerce websites, and more and more, major brands are picking up on the trend. Allen just said Apple is starting and is looking to integrate into Apple Pay. So yeah, man! It’s interesting! I think it’s like we said before even the airlines are starting to. certain airlines are offering to buy now and pay later. So, it’s one of those technologies that is definitely not going anywhere. And it’s been pretty interesting to watch. It develops and the technology grows into everyday usage with the masses. So, what do you think? Yeah, it’s definitely a very interesting topic. I saw a poll on, it said how many people participated in buy now pay later from one credit card company?
And they said 50% of the cardholders had participated in a buy now pay later, and that was over a variety of age groups. So, I think that it’s not going to go away. MasterCard has talked about it. Apple and PayPal have expanded their offering. I think that, from the, as a business owner, what you have to look at is what does your business do? So, do you sell a physical product or a service? And I, before you go dive in, I just think that a lot of, I think that the education-wise has not been put out there for them, for other businesses to really utilize this technology. I think the services, service industry, and businesses don’t understand how they can use it. How easy is it to get? How easy is it to get signed up? So, we partnered with two companies that offer Buy Now Pay Later. So, one of them offers only for physical products.
Like a store that sells our work. Yeah. So, you could be in a store, and you can offer it face to your customer through a portal, send them a text message, and then they can do a buy now pay later. So, for like our galleries, just any store selling physical items. No, I’m just saying I’m just trying to yeah. Like clothing stores selling shoes, it’s got to be a bit more of a mom-and-pop type of thing instead but it’s limited because you’re making four payments every two weeks. And what’s, there’s like usually a minimum purchase? I think the minimum purchase is around 50 bucks, right! Yeah. But then the maximum is I seem is like maybe 2000 maybe. Yeah, it can be high, but it just depends on what the business gets selling credit too. It depends on what the business is selling. And also it’s a credit card, not a debit card. There is some fraud that’s associated with that, but the merchant’s not responsible because once the company accepts, the client, then they’re the ones that have to deal with it.
You might have to provide a receipt and some, what did they buy and things like that. So, there are companies that offer it. Like we can link, you can have it, you can just get like a little portal. Have it in your store and say, Hey, we offer, Buy Now Pay Later. And it’s easy. There’s a small, monthly fee, like $10. And you get, you get all the money upfront and maybe that can help you make some incremental sales. What if you owned Justin’s clothing store and by now pay later, somebody came in and it helped you make an extra sale or two, I guess Rocky likes he goes to the dog store, pet store, but I’m saying, let’s say that helps you make one or two extra sales every week, right? That’s pretty good. It’s a pretty good product. And if you, have it on your website, sometime that’s attractive, someone’s trying to buy a hundred dollars worth of stuff. They don’t have the money; they could pay it in four payments!
I did that with these shoes. So, people do that all the time and not because. Clark Wallabies. True. You can’t, but they don’t do it because they don’t have the money. They do it just to stretch out the length of time because, oh, I did it. Cause I don’t have the money. I don’t know what you’re talking about. No. But what I’m saying is you could have put it on your credit card and then paid off your credit card, but in a sense, right? Yeah. In a sense. You put it on, you put it on Buy Now Pay Later. So, the whole, let’s just say you’re buying I, here’s a good explanation. You’re buying a pair of shoes they cost a hundred dollars. Yep. You want to break it up into four payments of $25 each! Okay. If you put the whole hundred on your credit card, then you got to pay that off at the end of the month, or you’re getting the interest on this whole hundred dollars.
If you’re doing $25 every two weeks, right? Then you’re you are going to probably not as pay as much interest. Yeah. There is no interest, on those purchases. They kind, it depends on some of them, yeah. It depends on what company it is and how much the product is and right. And all of that. Merchants need to make sure when you’re signing up for these services, what is they offering? What is the offering to the client? What is your liability? Look and things like that. You need to really understand it. Because some of these companies there’s no fee, but then you’re the merchants paying the merchants, paying a fee. And then the customer’s not paying a fee.
It just depends on how they figure it out and on how it works. So, you have to see like, how does it work? Some of them are a little misleading because it says, oh, break this up into the payments. And then the person doesn’t recognize, oh, there was a 5% fee. So, they paid an extra $5 to do that. So, because they hide it with the price when you’re doing the checkout. And then, on the other hand, we work with another company that only offers for services. So, we’ve helped a bunch of companies using this company. We had a CPA firm that uses it and, CPAs and attorneys, have a special program that allows up to 12 payments. So, let’s say Justin’s an accounting office.
Does Samantha’s taxes and her bill is a thousand bucks, and she can’t pay it, but they need to get their money upfront. They can get Samantha financed from the thousand dollars. They get their thousand bucks up front. Samantha pays the company or the customer. It’s a, so we helped another guy with a coaching business. He had a, he has like a coaching business, and he does events and classes. So sometimes people don’t have the money for the program programs like two or $3,000 sometimes. Some of the programs or class is 500 bucks gives the person can split it up into four payments. And those payments on the service side are monthly payments.
So, they’re paying payments out every month. So, they’re probably a little bit more right. They can go a little. But they still hold the money on the credit card. That’s nice! So, it’s a, so we helped that company. We helped another company that rents out cameras that does camera equipment rentals and they signed up for it. So, it’s, it’s a good program. It works for a lot of different businesses that want to get Buy Now Pay Later; it works for them. So, let’s talk about, the list is long! Extremely long! It’s a long list, this kind of works for people like veterinary services. Somebody comes into the vet, and they don’t have the money.
Let’s say their dog is sick and they don’t have the money. Sometimes the vets try to collect, they’ll let the person go. And then they have to keep calling the person and pounding them for the money. What’s the one that has been around, for like forever? Synchrony or something synchronicity, that’s the, they’ve been doing offering like finance, that’s financing. This is Buy Now Pay Later in four payments! No, I’m saying it most. I’m saying like at veterinary clinics that are the type of service that they’ve been offering. It’s like synchrony or whatever. It’s right! But now it’s, that’s huge. Right now, it helped, there was just a huge expense for my mother-in-law.
So, you could do a Buy Now Pay Later four payments and then the person’s not into a long-term contract, sometimes like care credit and things like that. You’re, they give the person, a couple of thousand dollars to do like dental work. Maybe Buy Now Pay Later fits in for a few of your clientele. That’s you know, it’s good! So, it works in different businesses like heating, plumbing, and air conditioning contractors. Another one is. I think you should pause really quick. Yeah! Real. Cuz the heating plumbing and air conditioning contractors are like HVAC. That’s really a big business down here, I’m not one of those people who has to take care of the AC unit. But a friend of mine has to take care of his AC unit and the whole thing went down. So, now he’s responsible to get it replaced, whatever, blah, blah, blah not replaced, but to fix the right, the, fix what’s wrong with it. And there’s a lot like it’s expensive. Yeah,
It could be a thousand bucks, sure. It’s about 1700 bucks or something like that. He spoke. And so, something like this would really help that guy. Cause that’s what I’m saying. But I think that these types of businesses don’t know that they can offer that. When we go put this out on social media, we should just tag, make a few different posts and tag these businesses. Yes! Good Idea! And that way they can see it. So, the same thing as publishing and printing services is another one. People are trying to promote their business. Maybe that can help get some extra sales for that business. Another one on here is Car rental. Although, we don’t really deal with a lot of car rental agencies, travel agencies, airlines, yeah.
Ambulance service is one that also can be something that’s quite expensive, and this could help somebody pay for something. I tried to like highlight things that were, there are a lot of different things on the list that they’ll do. Another one is Moving and Storage and Local Delivery, Courier Services, and things like that. That could, the one that sticks out to me right away is the jewelry repair shops watch, clock, and jewelry repair shops. I’m sure that can get very expensive. Yeah! But even if they, even, if what about yeah, but what I’m saying, if someone comes in, they need a $200 repair to their then they don’t have the money.
Then you lose the sale, the person doesn’t get it done. This can help you make an incremental few sales. What about car repairs, is car repair services on there? I think, Yeah! Car Repair Services is on there. Shoe repair it’s on. We got to go down the list. There’s, there are things for like boat rental, boat leasing there are different things for computer repair. Dental laboratory. I’m just naming off a few little things here, yeah. So on here, it has car repair, but for services only. So, its service’s only bicycle repair shops services only. So, it’s not for the parts, it’s just for the services, but that can help somebody, finance part of what they’re having to pay for getting a hearing aid fixed.
One that’s on here, electric, razor stores services only like cleaning the razor, sharpening it, things like that. Carpet and Upholstery cleaning. Yeah. Just different things, people don’t, the budget is tight. Here is one funeral service thought that was unusual, but it is, that can be expensive. People do financing for that! I would, yeah. I’ve never had to take care of anything like that, but I’ve known for a fact. Putting a funeral together and burying someone is not easy, none, but, not affordable either. Here’s one that’s interesting too Advertising Services. So, we just signed up a client for this.
That’s starting a company, to do social media advertising services for businesses. So, this way, they could sell, instead of trying to collect money from people monthly, they could sell them like a quarterly package, and then the person could do a Buy Now, Pay Later and pay for all that over four months, instead of, maybe they’re struggling with their business right now. They could do that. Computer maintenance and repair, we talked about coaching, so a lot, that seems to be a popular business for some reason. Very much another one on here I thought was interesting. Detective services, Security services, and Guard dogs. I don’t know how many companies are out there like that, but it’s a lot.
Yeah. As you said, watch clock, jewelry, and furniture repair. All kind, any kind of repair shop education is on the list. So there are different types of things for education that you could do Buy Now Pay Later, probably like for taking a class, not paying for four years of college. No, like a course online or something. Yeah. If you’re selling a, how to build a website, on your website and you want to offer that course. I’m sure that’s what they’re talking about, Yeah! Like the, exactly. And then on here, we saw some medical stuff for doctors, dentists, orthodontists osteopaths physicians, chiropractors, ophthalmologists, optometrists, and dermatologists on it.
Everything, every kind of doctor optical and eye eyeglass store. This is great. And an eyeglass store, you have an eyeglass store want to offer Buy Now Pay Later, someone’s got to get their glasses and they don’t have the money. What do you do? They’re going to walk out of the store, right? This way you can do a Buy Now Pay Later, instead of the person having to wait for their wait to get the money for their glasses. Podiatrists. Hospitals and medical, it’s all on here. And I think a lot of business owners don’t know they can get Buy Now Pay Later services for their business and then enable them to make a few extra sales, each month, as far as traditional like trades and stuff like that.
I think of HVAC electricians and plumbers and all those types of people. They’re like still, kind of stuck in that old school. Yeah, pay me with a check or cash. Yeah, exactly! And I’m sure there are a lot of companies that are forward-thinking and that are like out there utilizing the technology, but that’s why we develop the podcast, the payment technology podcast to give educational information to business owners about different. Justin always tells me goes, oh, these product podcast is not always so interesting. This is FA this is pretty interesting! It’s interesting to us because we’re in the business, the content, right? Like we, we know that this is its UN a cusp. Like it’s almost very popular, it is popular amongst consumers because Americans are going into debt, like crazy over this.
So, for those that are listening, don’t go to your favorite. Website and spend three grand on a Gucci belt that you can’t afford because they’re offering Buy Now Pay Later and you’re going to miss your rent this month! Don’t be one, like that’s happening all over that’s the problem. And you just have to be smart when you’re doing the Buy Now Pay Later from a consumer standpoint. That’s why I was saying, make sure like what you’re actually getting charged before you like check out. Cause there’s a bunch of different companies doing it, Affirm, Klarna can just because it’s the sizzle, just because they’re saying that you can spread these payments out, these companies I’m pretty sure they can set the fee that they choose.
Yeah. So, an item costs a hundred bucks with after pay maybe it costs a hundred plus. No, I don’t think it’s that marked up that much. I don’t I’m making an example, I’m just saying people have pointed out as they go to the, I saw a video this morning on TikTok and it said, oh, I went to order some food online from this restaurant. And if I paid through the restaurant, the food was 20% less than if I went to Door Dash. Yeah. And all that. And Uber eats or whatever.
Door Dash has, we’ve said that on multiple podcasts stop using those third-party apps. For those deliveries, go pick your food up. Yeah. I know it’s inconvenient and it’s, sometimes it’s not the easiest thing, but one you’re going to save money regardless. And your food will be better because, Door Dash and all those other places, they don’t care. Only if it’s trying to get you to food as fast as possible, they don’t care about the quality of it. But one thing Door Dash is doing differently than the other companies. And I don’t know who else is doing this.
If it’s a pickup order, Door Dash doesn’t charge the restaurant for those orders. Obviously, you shouldn’t, right? No, but I’m just saying they were before they stopped. I guess they could because they’re using their platform, to make the transactions.
Yeah! They’re not charging ’em like, but if it’s a delivery, the prices are completely different. So, when you go to somebody’s website this convenience isn’t always the best option. Exactly! We talk about that when you’re getting a merchant account, is convenience the best option. Sometimes it is. Sometimes it’s not, if you’re in a pinch, you need it done. If you’re hungry and you don’t have a car, you’re going to order Door Dash, or if you’re trying to get paid and you don’t know, how to set up for merchant account, you’re going to go sign up for PayPal or Stripe or something, those circumstances change, and you should always, be ready to evolve, pivot, make advancements, get your business going in a direction that it should be! So, if you’re interested in Buy Now Pay Later, we’ll put the links in the podcast notes. You can check our social media pages always at B2B Vault.
I’m sure we’re going to do some cool TikTok’s about this. Yes. And we have a giveaway coming. For the hundredth episode, be on the lookout for that, for all of the listeners and the followers on our social media we’re almost ready to launch the giveaway. We’re just waiting on a few, little pieces to come together. So yeah, please. So, like subscribe to the YouTube channel at B2B vault, and shout out to our listeners there, we appreciate all the feedback and keep it going, share it, get your people, and invite your fellow business owners and entrepreneurs to the channel. There’s a lot of, there’s over almost a hundred episodes and I guarantee you, if you’re a business starting up, there’s something in there for you.
And if there’s not just one, there’s probably ten. Exactly! We’ve done a variety of podcasts about products, services, and different subject matter cryptocurrencies. You know how to start a business marketing for your business, all different types of things. Businesses should have, like right off the top just basic advice. So, we try to cover it all on B2B Vault, absolutely educational information for people starting a business, or if you own a business, we’re providing information about the subject matter. And we try to cover the subject matter.
Like by now pay later, we’re covering that. Why? Because it’s been in the news heavy all week, last week for the last two weeks. Mean the past, I would say the past two months. Oh yeah! Kind of, pretty much every week or every other day, but the last couple of weeks it was very heavy. Very much more. Yeah! Apple, Klarna made some moves. There’s been a lot of different stuff going on. Yeah, PayPal made their moves. Yeah, so if you have, you’re selling physical products, we have a program.
If you’re selling, if you’re selling services, we have a program for that! You can find out, just go visit the website, check out the links, and get in touch! We’ll always give you a free 15-minute consultation. I’m busy with those every day and trying to help business owners, with solutions for their businesses that involves, helping you with technology. So, this is a technology product technology for your business that may help you make incremental sales for your business. So, everybody, Have a great day! Carpe Diem! Peace Out!