TikTok's 'buy now, pay later' service is no longer exclusive to online stores or credit cards. However, the interest rate is not detailed. TikTok states that since the interest also depends on the item's risk level, the final amount is only shown at the payment screen. Therefore, there is no fixed interest rate; it depends on a calculation for each user based on the chosen item and their profile. After learning about the loans TikTok offers, if you intend to apply for one to shop in the store, it's important to mention the potential risks. Here are specialists' recommendations for the 'Pay Later' system: read the terms and conditions carefully, review the total cost before accepting, avoid using it for unnecessary expenses, compare with other options like credit cards or personal loans. TikTok's 'Pay later' is a new option in digital commerce due to being fast, accessible, and focused on the user experience. However, there are also risks associated with impulse buying or 'addiction' to shopping. After selecting a product, look for the 'Pay Later' option on the main page. Orders Center: PayLater is also available in the Orders Center. Product Detail Page: If a product supports PayLater, the option will be available under the product details. What do we know about the interest rate on TikTok loans? After sharing your documents and income information to get a TikTok loan, this data will also be used to calculate the loan's interest rate. Payments will be in biweekly installments, according to the platform. This last piece of information is important as it will determine the credit limit. To complete your TikTok Shop loan application, you must submit the following: your phone number to create a secure account, a valid government-issued ID (you must be at least 20 years old), additional information like an email address or emergency contacts. Approval comes between 5 and 10 minutes after submitting your application, though if there are any issues with your documents or additional verification is needed, it might take a bit longer. If you don't receive a response within that timeframe, you can contact TikTok's customer service team for help. TikTok advertising states that loan amounts are up to 30,000 pesos; however, users report that the initial available limit is 2,000 pesos. This way, TikTok will not only be a social network for entertainment but also a platform for users to discover products, buy them directly, and get financing to do so. How to pay in installments on TikTok? Once TikTok approves the new payment method, it will be incorporated into the existing methods, allowing you to choose to pay with a card or in installments. The available methods are electronic wallet: TrueMoney and mobile banking. If your application is approved, you will only need to follow these steps: Go to the main page in TikTok Shop. Now, TikTok is jumping on this trend with loans of up to 30,000 pesos within a single scroll. Watching videos, liking, and buying from your phone are already part of the daily routine for millions of people, and now a new temptation appears: quick money without leaving the social network. However, what seems like an immediate solution could turn into a difficult-to-manage debt if the conditions are not clear. First, it's important to detail that the 'Pay later' alternative is only available to selected users who will have the option to use their credits in TikTok Shop from the app. Furthermore, these loans only work for the TikTok store, so no cash loan or physical card is offered. The 'TikTok Pay Later' service works on a 'buy now, pay later' scheme, allowing you to defer payment for up to five monthly installments with biweekly deposits. The installment payment service is provided by the Swedish platform Klarna, which operates in Mexico, and the offer is operated by Pipo Soluciones Digitales, S.A. de C.V., according to Milenio. Although it is not a bank, TikTok acts as an intermediary, connecting users with fintech companies that offer the loans. How TikTok Loans Work. If you are a TikTok user who has this 'pay in installments' option approved, you will only need to meet certain conditions and wait a few minutes to get the option to shop in the social network's store. The terms and conditions explain that the rate will depend on each transaction due to a 'dynamic' fee. 'The interest rate applied to each transaction is dynamic and varies according to different factors, such as your account profile and the product you wish to buy.' One of the main requirements to apply is to present a valid official ID. Your ID is uploaded to a form that will ask for data such as occupation and monthly income.
