- 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.
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.
Why are more brands beginning to offer buy now pay later services at checkout?
In order to stand out in an increasingly saturated market, retailers are having to look to other avenues, besides price, to incentivise consumers.
Offering interest-free buy now, pay later (BNPL) services is an increasingly popular benefit that has been rolled out more recently, especially during the pandemic, to attract shoppers. 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’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. Recently it was announced that all 3 CRAs (Experian, Equifax and TransUnion) will be showing BNPL data on credit reports as of Spring 2022.
Where can I shop when using BNPL?
Buy now pay later with Klarna
Shop I Saw It First now and choose Klarna as your payment method to pay later! T&Cs apply.
boohoo athleisure: 70% off
Keep comfy while looking cool with boohoo's athleisure collection now at 70% off. 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.
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.
1000 lines reduced to £10
Shop at I Saw It First now for great savings on your next order! 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.
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.
Buy now, pay later compared
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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