{"id":332036,"date":"2020-09-03T19:22:28","date_gmt":"2020-09-03T18:22:28","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?page_id=332036"},"modified":"2025-08-08T14:05:33","modified_gmt":"2025-08-08T13:05:33","slug":"buy-now-pay-later","status":"publish","type":"page","link":"https:\/\/www.finder.com\/uk\/buy-now-pay-later","title":{"rendered":"Buy now, pay later: What is it and how does it work?"},"content":{"rendered":"

What is buy now, pay later (BNPL)?<\/h3>

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.<\/p>

Several BNPL services are available in the UK, and each has different terms and conditions and handles the idea of \u201cpaying later\u201d differently. Most BNPL services offer 0% interest, but some charge interest or late fees if you miss a payment.<\/p>

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.<\/p>

BNPL services available in the UK<\/h3>
\"Klarna<\/a><\/div><\/div>
\"Clearpay<\/a><\/div><\/div>
\"Payl8r<\/a><\/div><\/div>
\"DivideBuy<\/a><\/div><\/div>
\"Zip<\/a><\/div><\/div>
\"Zilch<\/a><\/div><\/div>
\"Flava<\/a><\/div><\/div>
\"Paypal<\/a><\/div><\/div><\/div><\/div>

What are the benefits of using buy now, pay later services?<\/h3>

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.<\/p>

\"BNPL<\/p>

Why are more brands offering buy now pay later services at checkout?<\/h3>

To stand out in an increasingly saturated market, retailers need other avenues besides price to incentivise consumers. <\/p>

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\u2019t offer BNPL in a study from February 2020 by market research agency Harris Interactive.<\/p>

Which service is the most popular?<\/h3>

\"Clearpay<\/p>

Does using a BNPL service affect my credit score?<\/h3>

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\u2019t miss any payments, your credit score shouldn\u2019t 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<\/a>.<\/p>