How to Use Buy Now Pay Later Responsibly – Infographic

Buy Now Pay Later (BNPL) has become a popular payment method for many consumers, providing a flexible and easy way to make purchases without having to pay the entire amount upfront. But, like with any financial instrument, it is critical to use BNPL wisely in order to prevent becoming indebted or ruining your credit score.

How Does BNPL Work?

BNPL (Buy Now, Pay Later) is a payment mechanism that enables consumers to make purchases without having to pay the entire amount in advance. Instead, individuals can spread the expense of their purchase across multiple interest-free installments. BNPL normally operates as follows:

  1. Apply: A consumer needs to create an account and apply for a BNPL deal for a merchant of their choice from a fintech platform.
  2. Checkout: At the checkout, the customer selects BNPL as their payment method and enters the 16-digit voucher code.
  3. Approval: The consumer’s application is then reviewed for approval by the BNPL provider. This procedure often takes only a few minutes, and the consumer receives an instant decision.
  4. Purchase: If approved, the consumer can finish the transaction and immediately receive the product or service.
  5. Repayment: The client then repays the money in weekly or monthly payments over a defined period of time. According to the BNPL provider, the exact number of payments and the payback plan may differ.

How to Apply For a BNPL Deal

Here’s how it typically works:

  • Download the app from Google Playstore or iOS Appstore
  • Create an account
  • Choose the BNPL deal
  • Choose the amount and tenure
  • Submit the required documents
  • You will receive a 16-digit gift voucher code
  • Use this code on the merchant’s platform while checking out


Are there any alternatives to “buy now pay later”? 

Certainly, there are alternatives to buy now, pay later such as standard credit cards, personal loans, layaway schemes, and using funds to make an outright purchase.

Is there a credit check for “buy now pay later”?

It is determined by the fintech company providing the service. Before authorizing a consumer for BNPL, certain organizations may run a credit check, while others may not.

What happens if a payment is missed?

If you skip a payment, you may incur late penalties, and penalty interest rates, and your credit score may suffer as a result. Certain businesses may also report late payments to credit agencies, affecting your ability to acquire credit in the future.

Is there an interest or fee?

BNPL is usually coupled with an interest rate and/or fees. Although certain BNPL services offer 0% interest rates, it is critical to read the terms and conditions carefully to understand any potential fees or charges.