Buy Now Pay Later Options - 'Honesty and Integrity' Series

Good day,

May God's peace and blessings be with you.

It's wonderful that you've found your way to this post in the 'Honesty and Integrity' series today. In this series, we look at different business practices and examine whether they are in line with the business principles of the Kingdom of Heaven.

In this post, we look at the 'buy now, pay later' option, which is particularly popular among young people, and examine whether offering such a payment option is consistent with the principles of the Kingdom of Heaven.

A business can offer the 'buy now, pay later' option in their store through a payment provider. This option allows customers to make purchases without having to pay directly.

This payment option is typically used in online transactions. The purchase is completed with just a few clicks. The customer can pay either by invoice with a specific payment date or in installments. Purchases on account can usually be converted into installment payments once due. Installment payments incur interest charges for the customer.

This payment option seems convenient to the customer. They can shop without having to pay immediately. Because the customer can use the feature repeatedly (with the same or different providers), it can be tempting to keep buying more, even if they've already exceeded their budget. This puts the customer at risk of losing track of their spending and thus incurring debt beyond their means.

Young people tend to fall into the debt trap more often due to this payment option. Debts that cannot be repaid leave one in a state of bondage, and one remains obligated to the creditor until the debt is paid in full. Such a situation can lead to increased stress, as well as relational and health problems.

Proverbs 22:7 (ESV) “The rich rules over the poor, and the borrower is the save of the lender.”

If we consume today what we hope to generate in the future, nothing will remain of the fruits of our labor. We even take a great risk, because we don't know if and what we will be able to generate in the future.

Proverbs 27:1 (ESV) “Do not boast about tomorrow, for you do not know what a day may bring.”

As entrepreneurs, we are the mothers and fathers of a community, and in this role, we are supposed to ensure that the community thrives and can bear fruit. When community members are in debt, they can no longer produce sufficient fruit because they are too preoccupied with worrying about their situation. They even run the risk of choosing the wrong path to escape or cope with their situation.

Business owners can contribute to the well-being of their community by carefully considering the payment options they offer their customers when making a purchase. Payment options that have the potential to potentially trap the customer in debt should be avoided, if the business owner can decide this. On some online platforms, the business owner has no decision-making power regarding the offering of payment options. These are provided by the respective platform provider as part of their payment option portfolio.

1 Corinthians 10:24 (ESV) “Let no one seek his own good, but the good of his neighbor.”

Exodus 22:25 (ESV) “If you lend money to any of my people with you who is poor, you shall not be like a money lender to him, and you shall not extract interest from him.”

God's laws are characterized by justice and social responsibility toward the poor and vulnerable. God insists that the poor and vulnerable are treated well so that they can improve their situation gradually.

Kingdom business relationships provide a win-win for buyer and seller. It is never set-up for one person to prosper at the expense of the other person.

Salt 🧂: Honesty, integrity, responsibility, concern for the common good

Light 🕯️: Transparent payment options that do not encourage debt traps