Where can you shop using buy now, pay later?

Buy now, pay later (BNPL) is a payment method available at different types of retailers. From clothing and homewares to toys and tech, businesses are allowing customers to complete purchases with BNPL.

This article explores what BNPL is and the types of stores and sites where it may be advertised.

What is buy now, pay later and who can use it?

Buy now, pay later, or BNPL, is a form of credit that lets users pay for a product or service in instalments over time without needing to pay the full amount for a purchase at the time of checkout.

To start, it might be necessary to create an account with a buy now, pay later provider. There will usually be terms and conditions associated with creating an account. When making a purchase from a store that offers BNPL as a payment method, the BNPL option should be visible at checkout.

Once the BNPL option is selected at checkout, an application for the BNPL loan will generally be required. Typically, an application will request personal information like the applicant’s name, address, email, and a verified payment method. Different BNPL providers may require different information during the application process.

Generally a decision is made quickly. Not everyone will be approved, depending on what checks are carried out by the BNPL provider.

Be sure to research options offered by buy now, pay later providers. Each may come with their own fees, interest rates, and instalment payment requirements and some do credit checks as part of the application process. It’s important to always read and understand any applicable terms and conditions associated with the BNPL option. Remember that BNPL is a form of credit and use may impact your credit file or credit score.

Where can you shop with buy now, pay later?

Different types of stores may offer buy now, pay later. Consider the below examples:

Online retailers

Many online stores offer buy now, pay later which should be visible in the retailer’s payment options at checkout.

Other ways to use BNPL

Buy now, pay later can be used to buy tangible products like fashion, furniture, and electronics. It can also be used to book services and experiences, such as flights, vacation rentals, and event tickets. Just make sure that retailers offer BNPL at checkout.

Large stores

Large department stores may offer buy now, pay later as a payment method.

Potential risks of BNPL

Using BNPL as a payment method may come with benefits such as paying for a larger purchase in instalments, over time. It also comes with risks. Before someone applies for a BNPL loan and uses it, there are important factors to consider. For example:

• Interest, fees, and other associated costs: Some buy now, pay later providers don’t charge interest or late fees. Some may charge account opening and account keeping fees and/or late fees. Customers should always read and understand any terms and conditions and be confident that a purchase fits in their budget.

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