PayBright Review 2022 – Is Buy Now, Pay Later the Future?
In the age of digital transactions, the internet, and payment wallets like Google Pay and Apple Pay, “Buy Now, Pay Later” (BNPL) platforms have exploded.
Twenty years ago, if you went to a merchant and wanted to pay for a $20 item in 10 monthly installments, they would probably refuse. Now? It becomes the norm.
Is this the best way to manage your finances? That’s not really for us to say in this article. We’ll dive into an in-depth look at Paybright, a company that continues to capture market share from BNPL.
PayBright Review 2022 – What exactly is PayBright?
PayBright is an emerging fintech company launched in 2009 that aims to allow consumers to break down the cost of a particular purchase into a series of bi-weekly or monthly installments.
Customers can decide whether or not they want to make two-month interest-free payments (paid every two weeks) or payment plans that might still be interest-free but might incur 6-60 month interest charges .
The company won Canada’s FinTech Company of the Year in 2019 and already has over $1.5 billion in approved consumer spending power. Its platform is becoming increasingly popular as more than 7,000 traders have signed up to authorize its BNPL features.
In early 2021, Affirm, an installment loan provider in the United States, bought PayBright for $340 million.
How does PayBright work?
The process of using PayBright is simple. I used an example below from Casper, a mattress company and official PayBright merchant.
As you can see, when you select the option to buy now and pay later, Casper gives you the details of potential financing, and from there it says to select PayBright at checkout.
Fortunately, it’s as simple as that. As you can see below, Casper can select PayBright right on their payment screen.
From there, you’ll sign up for a PayBright account, and once inside, you can choose from your current payout options.
As for the functionality behind how the merchant gets their money with PayBright, they will get it immediately. PayBright charges its merchants for access to its features and therefore bears the bulk of the product risk.
If you buy an $800 iPad, PayBright will pay Apple in full for the product and then ship it to you when you’ve paid the first installment. He takes the risk that future payments will not be made.
Which stores use PayBright?
The company has over 7,000 merchants using its payment plans. So, I went to their website and will note the most popular ones:
- The Bay
- Brown shoes
- Steve Madden
- Moose Knuckles
- Urban barn
- land of sleep
Can I use PayBright in store?
Those who still prefer brick-and-mortar shopping are in luck. PayBright offers its in-store payment plans. If you want to see if the product you want is available in store and under their coverage, call the store and ask.
What do I need to qualify for a PayBright plan?
To qualify, you will need a Canadian Visa or Mastercard credit card. And, you will need to be a resident of Canada and over the age of 18. As you may be reading this a month after publication or a year after publication, you should go to the PayBright website and check their requirements right now.
What are PayBright’s payment plans?
Before we get started, it’s essential to note that although PayBright has two default payment plans, not all merchants offer them. Before completing the process, you need to determine if your optimal payment schedule is available from the merchant.
Pay in 4
The Pay in 4 plan allows you to make four payments every two weeks to complete the purchase.
Some advantages of the Pay in 4 plan:
- No credit report needed
- Payments are interest free
- No processing fees on purchase
- The majority of merchants have this payment capability
- You own the item once the first payment is made, not the fourth
Disadvantages of the Pay in 4 plan:
- Purchases are capped at $1,000. Thus, larger purchases cannot be completed with it
The monthly plan allows customers to pay for a product with equal monthly installments.
Some advantages of the monthly plan:
- Can potentially still be irrelevant
- Can spread larger payments over longer periods
- Payment schedules and dates are available in your PayBright account.
Some shortcomings of the monthly plan:
- Requires a rigorous credit check and could impact your credit score
- Borrowing term may depend on merchant options
- Depending on your credit score and potentially even merchant rules, interest rates can be as high as 30% APR. It is essential to understand the terms of your payment plan before purchasing
Is PayBright Trustworthy?
In short, yes. The company is owned by Affirm, one of the world’s leading point-of-sale lending companies. The company has over 7000 Google reviews with a 4.4 star rating and a 4.6/5 rating on Trustpilot with over 7800 reviews.
Does PayBright affect your credit score?
It just depends on the loan you choose. PayBright’s Pay in 4 plan does not require a credit check from the credit bureaus to be approved. However, applying for the monthly installment plan requires a credit check and could impact your credit score if you miss payments. It is therefore crucial not to overspend or overspend with BNPL loans.
How will PayBright determine how much I can buy?
The company’s approval process is relatively simple as it uses automation to determine how much a PayBright user can borrow based on their credit limit.
The company will automatically allow you to borrow more when your credit score increases.
Is PayBright interest free?
The company’s Pay in 4 plans are completely interest-free. Suppose you are applying for monthly installment plans. In this case, although some are still interest free, you may pay a certain amount of interest depending on the current offer and your credit score.
Is PayBright hard to get approved?
PayBright’s approval process is simple and often only takes a few minutes when it comes to its Pay in 4 plan. When it comes to monthly installment plans, it gets a bit more extensive as credit checks are involved, but the process remains relatively simple.
How does PayBright make money?
The company makes money primarily by charging merchants a fee for the ability to use PayBright’s payment plans. However, they also make money from the interest they charge on the monthly installment plans they issue. Finally, although their Pay in 4 plans don’t have a processing fee, they do charge the fee on their monthly plans.
What happens if I don’t pay PayBright?
Just like missing a credit card payment, you may owe PayBright a fee if you decide not to pay or miss a payment.
If you continue past a single payment, it would also be like a traditional credit card in that the company will flag you for collections if you don’t pay the arrears.
What are the main alternatives to PayBright?
Every year more and more companies are entering the Buy Now Pay Later market. However, the most prominent alternatives to PayBright at the time of this article are SelectPay, Zip, and Afterpay.
Each BNPL company will offer various fees, caps on particular payment plans, customer service options, and availability at specific merchants. It may be a good idea to do some research before choosing your BNPL processor.
The main advantages and disadvantages of using PayBright
Overall, should you use PayBright?
I believe that if you have the money to pay for something, pay for it. My preferred choice of payment is most definitely with the cash you have. It’s quite easy to pile up your basket with BNPL items and finally realize, “woah, I spent way too much.”
So the best way to budget is to buy things with the money you have. If you have $200 right now, what’s the difference between paying that money out right away and spreading it out in bi-weekly installments over two months?
The PayBright monthly payment plan, however, has its uses, especially if you can lock in an interest-free or low-interest rate for a reasonable term.