Last month, TikTok quietly rolled out a Buy Now Pay Later (BNPL) scheme called PayLater but at the time, no details were given out about the repayments. Now, the company has published a proper FAQ that details the scheme’s fees.
Currently only available to select users, PayLater charges a processing fee of 1.5% on the total order, regardless of which payment plan you opt for, ranging from one month to 12 months. Oddly enough, TikTok’s previous screenshot images for the feature showed that there would no fees for one-month payment plans, but it seems this has been scrapped.
For reference, this is the same rate charged by other BNPL schemes such as Atome, Shopee’s SPayLater, and Grab’s PayLater. However, it should be noted that there are no fees when using Atome’s three-month instalment plan, Shopee’s one-month instalment plan, or Grab’s four-month instalment plan.
The limit will differ depending on the user, with some users reportedly receiving a RM10,000 cap while TikTok itself has previously advertised a RM20,000 limit. It says that the company periodically reviews spending limits and may adjust them for each user depending on their spending behaviour.
Users can choose to make early repayments if they want, but there will not be a waiver for the processing fee. For those who are late on their payments, their account will be frozen and they will need to pay RM10 to reactivate it. Moreover, there is a minimum spending amount for using PayLater, ranging from RM1 for a one-month instalment to a minimum of RM12 for a 12-month instalment plan.
(Source: TikTok)
