What Is Buy Now Pay Later?

What Is Buy Now Pay Later?

The “buy now, pay later” scheme is a common payment method used by online customers that began skyrocketing in popularity during the pandemic and has been on a steady incline since. The unsecured method allows consumers to purchase their goods now and pay over the course of multiple payments in smaller amounts. Recent research suggests that the scheme currently has over 360 million active users, most of whom are using the method for clothing-related purchases. After all, shopping online is a major financial downfall for many individuals when it comes to saving money and overspending, so who wouldn’t want to spread the overall payments out? Despite having so many users and appearing to be helpful, the unregulated payment system could soon lead to financial mishaps if anything were to go wrong.

So, What Is Buy Now, Pay Later?

The financial scheme is exactly as it sounds, it gives users the opportunity to make a purchase now and pay for their overall amount over the course of a short period. These typically vary from 30 days all the way up to several months depending on the company you’re using for buy now, pay later. Typically, you will find these payment methods at the checkout. For example, when you’re about to pay for your online shopping, this option will appear alongside other aspects like card payments or gift vouchers.


There are numerous positives to using the “buy now, pay later” schemes, but what do they include?


Just like it sounds, using this scheme offers buyers convenience and speed when they’re wanting to make a purchase, which may be on the more expensive side. Instead of spending months and months saving for that one item, you now have the opportunity to purchase and receive it right now, without having to pay for it all upfront. Even though not all retailers have adopted this payment method as an option, there are still thousands who have, one of which could be your favourite.

Spread-out payments

Usually, the chosen company will do all of the work for you. By this, we mean splitting the payment into multiple equal payments over the course of the plan. This means that you do not have to pay for the goods all at once, but you are able to spread the payments out, offering you a simpler, stress-free approach.


Despite seeming very useful and beneficial, there are many downsides to buying now and paying later that people don’t tend to consider before making the purchase. So, here are a couple of examples to help educate you on the cons of the scheme.

Increased Impulse Buying

With the ability to purchase from home without having to immediately contribute to the payment, online shopping is becoming even more tempting. However, overspending and impulse buying can soon lead to further debt and financial worries, causing problems in the future. In the United States, impulse buying has increased by 14% since 2021. This proves that more and more people are buying products without considering their finances and whether or not they can actually afford the transaction.

The companies are not regulated

The buy now, pay later industry is known for being a non-regulated world. For many consumers, this may not sound like a problem. However, once you find out more information, you’ll soon understand that non-regulated companies do not offer a good level of consumer protection. In this case, you’ll find your finances at risk. With the companies not being able to conduct thorough affordability checks, millions of people could be in more debt than before by the end of their buy now, pay later experience. If you are looking to borrow a payday loan from a regulated, safe, and secure lender, here at LoanPigUSA we can help.