Buy now, pay later (BNPL) is the name for a kind of credit payment that allows you to purchase goods, but pay for them either later or by instalments. However, newer buy now, pay later providers such as Klarna, Paypal, Laybuy and Amazon make it easier to shop online without having to pay straight away.
Shops and catalogues have offered their customers the option of putting off payment since long before the arrival of internet shopping.
The new online providers let their customers ‘spread the cost’ of shopping online. You can either
- pay later, which means delaying payment for a purchase for between 14 and 30 days, or
- ‘slice’ the payment into smaller chunks that can be repaid over several months.
It’s really important to recognise that you should treat BNPL like any other debt, and never borrow more than you can afford. If you can’t pay what you owe on BNPL, contact us for free, impartial debt advice.