- Warning: Late repayments can cause you serious money problems. For help, contact the MoneyHelper.
What is buy now, pay later (BNPL)?
Buy now, pay later is a payment service that allows consumers to shop online and place orders right now but pay for them later. Most of the services split the final shopping total into 3 or 4 more manageable amounts. The first payment is usually due at the time of order, and then each additional payment is due a month apart.
Several BNPL services are available in the UK, and each has different terms and conditions and handles the idea of “paying later” differently. Most BNPL services offer 0% interest, but some charge interest or late fees if you miss a payment.
Before you sign up for any buy now, pay later service, be sure you have fully read and understood the terms and conditions (T&Cs) of your chosen service.
BNPL services available in the UK
What are the benefits of using buy now, pay later services?
Finder conducted a survey in July 2020, asking 2,000 Brits why they chose to buy now, pay later. Ease and convenience was the number one factor, with the ability to spread the cost of purchases over a longer period coming in second.
Why are more brands offering buy now pay later services at checkout?
To stand out in an increasingly saturated market, retailers need other avenues besides price to incentivise consumers.
Offering interest-free buy now, pay later (BNPL) services is an increasingly popular benefit rolled out to attract shoppers, especially during the pandemic. This is because consumers have come to expect BNPL: Nearly 9.5 million Brits said they avoided stores that didn’t offer BNPL in a study from February 2020 by market research agency Harris Interactive.
Which service is the most popular?
Does using a BNPL service affect my credit score?
This can depend on a few factors. Each BNPL service deals with credit checks in a different way, so be sure to read the T&Cs of your chosen provider. Generally, if you can repay your loan as agreed and don’t miss any payments, your credit score shouldn’t be negatively impacted and, in fact, could improve. If, on the other hand, you fail to pay on time or miss 3 monthly payments, your credit score is likely to deteriorate. As of Spring 2022, all 3 CRAs (Experian, Equifax and TransUnion) show BNPL data on credit reports.
Where can I shop when using BNPL?
Shop with Klarna at ASOS to buy now and pay later
Try before you buy when you choose the 'Pay later' option with Klarna at the ASOS checkout! T&Cs apply.
Shop now, pay later with Klarna
Klarna payment is now available at Lovehoney. Buy now and pay in 3 today! T&Cs apply.
Shop now, pay later with Klarna
Shop boohoo now and pay for your order later with Klarna. Want to learn more? Use the search bar to find our full Klarna review. T&Cs apply.
Buy now, pay later with Klarna
Shop the latest footwear styles at Schuh right now and pay in three easy payments with Klarna. T&Cs apply
Buy now pay later with Clearpay at LOOKFANTASTIC
LOOKFANTASTIC is now live with Clearpay! Shop now and split your total to pay later. T&Cs apply.
Clearpay: Buy now, pay later at boohoo
Choose Clearpay as your payment method at the checkout of boohoo and split your shopping total into 4 payments. T&Cs apply.
Buy now and pay later with Clearpay at boohooMAN
Can't pay in full right away? Take advantage of Cearpay and buy now, pay later at boohooMAN today. T&Cs apply.
Buy now, pay later at PLT with Clearpay
PLT is now live with Clearpay! Shop now and split your total to pay later. T&Cs apply.
Although some retailers work exclusively with one particular BNPL provider, in December 2020, PayPal launched its Pay in 3 service, which can be used at most retailers that provide PayPal at checkout. Digital bank Monzo also offers its own BNPL service, Monzo Flex, which can be used pretty much anywhere that accepts Mastercard.
Buy now, pay later services have a number of benefits, but if you’re thinking about using one, you need to be absolutely sure what you’re signing up for. You also need to be sure that you can make your repayments on time and in full to avoid any unnecessary fees and a possible drop in your credit score.
- Harris Interactive
- Finder survey, July 2020
Almost 4 in 10 Brits say they have used a buy now pay later service, with 44% of shoppers naming ease and convenience as the main reason.
Discover more interesting statistics about buy now pay later, online shopping and more in our report.
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