You may have known that Square users can accept AfterPay as a payment method on their websites and at their POS. If you don't know, AfterPay is a great way to give your customers an option to fund a larger purchase over a length of time. As a Seller, you get paid up-front, and the buyer doesn't have to spend the full amount all at once and can "finance" their purchase. This could open your business up to sell more, or generating more large purchases. Check it out if you don't already use it!
But I'm writing this post today because I just read something interesting from the buyer or consumer side of a transaction. I was investigating making a large electronics purchase for my own business, and thought about using a payment plan service. I noticed something called Affirm on Walmart's website, and did a bit of investigating. The interesting info I discovered is that some of these "buy now, pay later" services (including some Affirm purchases) can impact your credit score/report, and EVEN if you pay on time, it could negatively impact your credit.
I'm no expert in credit reporting so I can't explain why or how this works, but I read in this article that AfterPay may be a safer way to extend your payment options; the article says AfterPay does NOT report anything to the credit bureaus. I always pay on time with my bills, but the idea that my credit could be negatively impacted EVEN if I pay on time, makes me more inclined to consider a longer-term payment option that doesn't report on my credit score.
Have you used AfterPay to fund any purchases for your business, or use AfterPay on your Square website?
