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FinTech is often a term relegated to stuffy news articles about the economy, so you might be surprised to learn it has a place in your holiday plans. Short for Financial Technology, FinTech powers many of the payment methods and apps you use to finance the season.
Whether you realize it or not, these services make the holidays a little bit easier to plan and budget. Let’s explore why below:
Virtual Lending in Emergencies
Accidents and disasters can happen any time of the year, even during the holidays. But unlike the rest of the year, the holidays are particularly tough on your wallet. Many people use up extra cash and start using credit to afford all the gifts, food, and travel that come with the season. All this spending can leave your budget extraordinarily vulnerable to unexpected expenses.
FinTech can help you afford these emergencies with convenient, straightforward direct deposit loans. But wait, what is a loan with direct deposit? It’s a FinTech platform that delivers your funds directly to your bank account of choice, provided you are approved.
FinTech does away with in-person applications and the need to pick up physical checks, so this technology accelerates the typical borrowing experience. This shortened timeline can come in handy during the hectic holidays, when your emergency needs solving right away
Buy Now, Pay Later Options
FinTech powers the latest Buy Now, Pay Later (BNPL) financing platforms taking the ecommerce world by storm.
This financing plan works a lot like an online installment loan save for a couple key details:
- Instead of receiving a direct deposit loan to use as you wish, your financing covers the cost of an online purchase.
- Instead of owing an online lender, you pay back the BNPL service provider over multiple payments or installments.
FinTech platforms digitize an old-fashioned layaway. If you aren’t old enough to remember this option, it’s simple. Most department stores let you put an item on layaway, which allowed you to pay off the item’s cost over multiple, smaller payments.
Layaway is incredibly helpful for people who don’t have a lot of cash all at once but who can afford to spend long term. The same goes for modern shoppers using FinTech platforms to afford their shopping lists this holiday.
Let’s face it — despite the growth of online personal loans and BNPL financing since the pandemic — these FinTech services are niche. Not everyone will need to borrow money for an emergency or purchase this year.
Most people, however, will rely on digital payments to stock up on gifts. Thanks to FinTech platforms, you can safely purchase supplies using your computer or phone, wherever you get Internet. Convenience drives these digital payments. After all, you won’t have to go out and fight traffic or mall crowds to complete your list.
FinTech for the Holidays
If you’re like a lot of people, you find the holidays stressful. From surprise guests dropping by to hanging the stockings with care and everything between, there’s a lot going on. On top of it all, you have a long list of people to shop for.
Trying to juggle everything you need on your own can be challenging — not just for your nerves, but for your budget, too. With more socializing and spending on the books, the holidays put your budgeting and organizational skills to the test.
Passing this test is easier when you embrace FinTech for the holidays. FinTech includes forward-thinking software and apps that help you get your shopping done quickly and efficiently.