5 BNPL platforms offering instant credit this holiday season

By Gloria Methri

Buy Now Pay Later or BNPL is revolutionising the way customers make purchases online and even in-store, by making payments more flexible and convenient for shoppers. BNPL is an alternative payment method that enables customers to make immediate finance purchases and pay them back in fixed installments over time.

The last two years have seen a sharp uptake in BNPL payments as customers are turning to buy-now-pay-later services during the holiday season.

This year, online spending using BNPL loans is set to rise almost 9% during the holiday season to a record high of £3.7 billion ($4.5 billion) in the UK, according to Adobe Digital Insights. As the holiday shopping season begins to peak, business owners should ensure they have tools in place to easily track their sales and inventory.

Here are five FinTech platforms offering Buy Now Pay Later option to consumers this shopping season:

• Afterpay

Afterpay, also known as Clearpay in the UK, lets customers break up their payment into interest-free installments with ‘Pay in 4’, and finance higher value orders with monthly interest-bearing installments. This feature is however available in the US only. Afterpay is available in Australia, Canada, New Zealand, the UK, and the US and has 20 million active consumers.

• Curve Flex

UK-based financial super app Curve offers a Flex solution allowing its customers to pay later for almost any purchase made within the past year. Launched in September last year, Flex operates from within Curve’s existing app.

• Laybuy

Launched in 2017, Laybuy has already built a reputation as a risk-free BNPL solution. The platform also lets customers make purchases beyond their credit limits by allowing them to pay the difference and spread the balance. Currently, it is available in the UK, Australia, and New Zealand.

• Payl8r

Manchester-based Payl8r is one of the more forward-thinking BNPL apps. The company provides a variety of financing options and is based not on credit history but on affordability. Payl8r is seen as an attractive option for students and those without much of a credit history to speak of. The app itself is also well-designed for user convenience.

• Zilch

Zilch is a BNPL app that allows its customers to shop wherever Mastercard is accepted. Its users can keep track of all their purchases in one place – whether made online or in-store – ensuring they have a transparent view of their finances as well as their repayment timelines.

Zilch also offers lending options by combining Open Banking technology with soft credit checks to build a personalized affordability profile for each customer. Tap & pay-over-time are some of Zilch’s popular buy now pay later offerings.