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Buy now, pay later: What is it and how does it work?
It's the newest way to pay for your online shopping. Here's everything you need to know about buying now and paying later.
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.
There are several BNPL services available in the UK and each has different terms and conditions and handles the idea of “paying later” differently. The majority of BNPL services offer 0% interest but some do charge interest or late payment fees if payments are missed.
Before you sign up for any buy now, pay later service, be sure you have fully read and understood the terms and conditions 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 time period coming in at second.
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’re able to 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 three monthly payments, your credit score is likely to deteriorate.
Where can I shop when using BNPL?
Thousands of retailers now offer BNPL options at the checkout. The biggest UK BNPL providers Klarna and Clearpay have +2,000 partner stores between them.
Nasty Gal
Super!
40% off everything!
Ends
Need to find a last minute outfit? For a limited time only, shop at Nasty Gal and enjoy 40% off everything! T&Cs apply.
Super!
Microsoft
Pay later!
Buy now and pay later with Klarna
Can't pay for your order in one go? Microsoft offers its customers Klarna services to spread the cost of their orders. T&Cs apply.
Get deal
Pay later!
boohoo
Exclusive
Exclusive: £15 off when you spend £60
Ends
Update your wardrobe now and use our exclusive discount code to score a £15 discount at boohoo when you spend £60 or more. T&Cs apply.
Exclusive
Missguided
Exclusive
Exclusive: Extra 10% off dresses
Ends
Looking for a new dress? Look no further. Shop Missguided now and get 10% off your next new dress with this exclusive discount code! T&Cs apply.
Exclusive
Nasty Gal
Super!
40% off everything!
Ends
Need to find a last minute outfit? For a limited time only, shop at Nasty Gal and enjoy 40% off everything! T&Cs apply.
Super!
boohoo
Exclusive
Exclusive: £15 off when you spend £60
Ends
Update your wardrobe now and use our exclusive discount code to score a £15 discount at boohoo when you spend £60 or more. T&Cs apply.
Exclusive
PrettyLittleThing
Pay later!
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.
Get deal
Pay later!
Karen Millen
Top deal!
30% off everything
Ends
Autumn is around the corner! Shop Karen Millen now and enjoy 30% off everything! T&Cs apply.
Top deal!
Buy now, pay later: Is it a good idea?
Finder’s shopping expert Georgia-Rose Johnson answers
There’s no way around it: buying now and paying later (BNPL) can tempt you into busting your budget. BNPL companies promise to encourage “responsible spending” but the attraction of the service is that it allows people to spend money they don’t yet have, without using traditional forms of credit, like credit cards.But there are ways in which BNPL schemes can make your online shopping easier and more flexible, without too much risk.
The first way is to use BNPL to try before you buy, and then pay only for the items you actually keep.
Scenario: You’re attending a wedding in just a few days and you’ve only just found the perfect pair of shoes online. You’re usually a shoe size 4 but sometimes in heels you find a size 5 is more comfortable. You don’t have time to buy one and return it to order a second pair if it’s the wrong size.
Another way in which BNPL can be valuable to consumers is for large but necessary purchases.
Scenario: You want to start your own graphic design freelancing business. This requires expensive equipment that eventually will pay for itself but that right now you just don’t have the money for.
Buy now, pay later compared
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