This form of finance is growing at a rapid rate and seems to be the new way to spend money which the ‘borrower” may not have at present.

Currently, there are more than 20 BNPL providers in the marketplace.

Examples include Afterpay, ZIP, Latitude Pay, Klarna, Payright and Brighte.

As this is currently an unregulated category or product type, most BNPL providers do not conduct credit checks. However, you need to be aware that this may impact your financial welfare and standing.

Some of the points to consider :-

  • Late payment fees
  • Usage of several BNPL providers
  • Impulse or unplanned buying
  • Financial strain (Defaults could leave a mark on credit history)

Some common features include :-

  • Interest free
  • Four equal instalments
  • Management and reporting via apps
  • Account limits


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