The world of digital shopping continues to amaze us, and perhaps the most notable transformation we have recently witnessed is the disappearance of the barrier of insufficient liquidity at the time of purchase.

This article clarifies the secret behind the success of services like "Buy Now, Pay Later" such as "Tabby" and "Tamara", and understands how these companies have managed to change the rules of e-commerce, and whether they provide a smart convenience for the consumer or lure them into spending more than they have.

How do these companies profit without interest?

The first question that comes to everyone's mind is how these companies make their profits if they do not charge additional interest from the customer.

But these companies have changed the game; they made the stores pay the costs instead of the consumer, by imposing a commission percentage on the store for each purchase.

This method has enabled stores to reduce abandoned carts and increase the value of purchases, making them willingly pay the commission. To ensure both parties benefit, the customer buys what they want immediately while the store ensures selling its goods and a quick flow of profits.

Flexible facilitation eliminates barriers

The biggest barrier facing consumers and merchants is the customer's hesitation due to paying the full amount in one go.

Financial applications have solved this problem by splitting amounts into comfortable monthly installments with no interest.

If payments are made on time, the customer benefits from managing their budget wisely without any burdens.

This intelligence has completely eliminated the problem of "purchase hesitation" and made the shopping process easier and faster than ever.

Financial awareness and avoiding the trap

Because financial decisions require awareness, and with the expansion of these services and their ease of use, the danger of emotional buying has emerged. Splitting amounts reduces the "pain of payment" for individuals, leading them to acquire products they do not need simply because the installment seems small.

The problem does not stop at one item; rather, the accumulation of small installments from several stores can turn into a financial burden that overwhelms the customer by the end of the month.

In the end, it becomes clear that the "Buy Now, Pay Later" technology is not a trap in itself, but rather a smart and very useful financial tool.

Those who do not plan their budget and adapt to changes wisely will simply find themselves drowning in installments.