Understand what it is
Buy now, pay later (BNPL) is a form of credit that lets you spread payments for everything from clothes, jewellery and white goods to concert tickets, hotel rooms and takeaway meals.
Typically the cost is split into three or four instalments that you pay off over a few weeks or months, and if you keep up with your repayment plan, you won’t pay interest or charges, so it can be completely free to use.
BNPL is offered by a vast array of retailers, usually at the checkout of online stores. It is also available at some physical shops.
Three brands – Klarna, Clearpay and Paypal – dominate the UK market. Many BNPL providers have their own app, and sometimes these offer “exclusive” deals. Some retailers offer just…