One thing that I have liked the most about Cash App is that it never stops growing better. After adding the loan feature, Cash App is in process to launch the buy now pay later feature. It means, now you don't have to compromise with your buying experience. With your favorite payment app- Cash App, you can eliminate the hesitation and nervousness that comes with desire to buy anything when you are short on money. Cash App buy now pay later feature soon will be available for all users.
On August 2, millions of eyes got widened as the two business giants struck a deal. A deal in which payment fintech Square announces to acquire one of the biggest buy now pay later platforms (BNPL) known as AfterPay. The deal was also confirmed by the Square CEO Jack Dorsey.
As the news of AfterPay acquisition by Cash App spread like a wildfire, more and more people started to talk about it on the internet. So many questions started floating on various social media platforms such as - Who can use buy now and pay later with Cash App? How will it work? And, what will be the fee for buy now and pay later on the Cash App? If you also have so many questions without answers then worry not. You can contact us and get answers to all your questions. Else, you can read this post and read the guidelines that will be applicable with Cash App BNPL. So, let's get started.
How does Cash App buy now pay later work?
It is simple. If you like something but running out of money and the seller supports the Cash App as a payment system then smile. Cash App is with you as your constant companion for every small payment. Cash App will pay the merchant for your purchase and then you can payback to Cash App with ease of mind. Let's be more specific. With Cash App you can split your bill payment in four small and simple installments. First payment or you can say your first installment will be payable at the time of checkout while buying the product. Further, Cash App will charge the rest of the three installments from your wallet every two weeks automatically without applying no interest or any fee. It's amazing. Isn't it?
Who can use Cash App buy now pay later?
Can everyone use the buy now and pay later feature on Cash App? Answer is - no. Actually, there are many features that are not intended to be used by everyone who has just an account on Cash App. A large number of people use Cash App in the US but they are all not verified. On the basis of verification, users could be divided in two categories: verified Cash App users and unverified Cash App users.
Now it is simple to guess who can use BNPL. Of course, those who have not confirmed their identity on Cash App can't enjoy the buy now and pay later feature on Cash App. Unverified users on Cash App also can't use features like direct deposit, and borrow money.
So, for the hassle-free payment experience, the idea here is to become a verified Cash App user and enjoy the benefits of Cash App. Also make sure that you meet the below mentioned points:
- You must be more than 18.
- Your repayment history must be good.
- You must be a frequent Cash App user.
Cash App buy now pay later fee
You might be pleasantly surprised to know that Cash App buy now and pay later feature is free. Until and unless you miss any installment or got late to payback on time, you will not incur penalty or interest. In case, if you failed to pay one or all installments then Cash App will definitely charge your account with penalty. According to the reports, Cash App might charge up to $5 as a late fee for the first 7 days. And if the incumbent does not pay the installment then the late fee will increase in proportion to the delayed time that might go up to 25% of your initial order value. At worst, Cash App might close your account due to violation if you refuse to pay back or due to whatsoever reason failed clearing the dues.
Also read: How to reopen a closed Cash App account?
Will buy now and pay later with Cash App affect my credit?
The same question we have asked the Cash App representative and here is what he said. Before issuing a loan or allowing using pay now and pay later, Cash App might do a soft credit check just to determine whether the user's account is in good standing or not. A piece of good news is that Cash App does not report your account activity to any of the credit bureaus even if you are a defaulter. But still, it is better to be on the safer side and be sincere in paying all dues.