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Risks of Using Paylater You Need to Know

By Isny Dewi R

19 November 2019

Risks that people will face if they’re not wise in using paylater.

The paylater feature is now being loved by people. Many digital wallet companies are competing to offer features that allow users to buy anything, even use online transportation services and pay later. Paylater is also a fun alternative for people who have been finding difficulties in applying for credit cards

According to Alexander Adrianto Tjahyadi, Grant Thornton Indonesia's Audit and Assurance Partner, a good understanding of paylater is needed so users can avoid from debt bondage and twisting installments. Grant Thornton summarizes four risks that people will face if they’re not wise in using paylater.

1. Be Consumptive
Unconsciously, the convenience offered by paylater gives impulsive impulses to users in deciding what they will buy, and often they not only use it to meet their daily needs, but also are used to buy items that tend to be unnecessary. As a consumer, you should know that businesses have a strategy of giving massive promos to spend their products that are not selling well.

2. Unconscious Costs
People, especially millennials, are known as the number one consumer who unifies speed and practicality. But that also makes them unaware of additional costs that must be paid later such as subscription fee, handling fee for each transaction, and other costs. No doubt, all these costs make your expenses increase and quite burdensome when the bill comes.

3. Disrupted Your Finance
The convenience offered by paylater from various applications can also interfere with your personal financial arrangement because you have a lot of installments to pay. The budget for paying paylater bill can be used if at any time you face unexpected needs.

4. Hacking Prone
Digital transactions do not escape the danger of hacking. Although each application has been fortified with a high level of security to protect users personal data, the risk of cyber criminals in finding ways to hack into the database in user's transaction account still exists.

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