How Do Buy Now, Pay Later Loans Work in the Philippines?

Jay Pagkatotohan

Jay Pagkatotohan

Last updated August 18, 2022

The Buy Now, Pay Later industry’s future in the Philippines looks bright. Buy Now, Pay Later services are seen to grow in size in the country by 2026. This is after the global pandemic fast-tracked the people’s adoption of such cashless services.[1]

But other than the pandemic, the adoption of Buy Now, Pay Later financing programs can be attributed to the rising inflation rates Filipinos are facing. Traditionally, Buy Now, Pay Later is used for purchasing big-ticket items, such as appliances or gadgets. But now, some are turning to it to cover daily essentials, such as groceries.

In this article, you’ll see how Buy Now, Pay Later works. This guide also covers this financing service’s advantages and pitfalls. If you’re using conventional payment methods but want to try this, we’ve listed some of the leading Buy Now, Pay Later apps and platforms in the Philippines.

What Does Buy Now, Pay Later Mean?

Buy Now, Pay Later or BNPL is an installment loan that allows shoppers to delay the payment of any transaction or purchase done online. Through this payment option, you can buy something right away even if you're short on cash at the moment.

How Buy Now, Pay Later Works in the Philippines

When you shop online, you'll always be presented with different payment modes, usually via credit card, debit card, or COD. But you may notice that your favorite retailer may also offer a Buy Now, Pay Later option.

When you choose to pay using BNPL, you’ll be able to buy the product without shelling out cash right there and then. But you’re expected to pay it back on the agreed date. If you choose to pay in installments, the payment will be spread across the agreed number of months.

In much simpler terms, BNPL is a type of loan that allows you to pay for purchases without using a credit card.


What are the Advantages of Buy Now, Pay Later Plans?

how buy now pay later works - Advantages

BNPL has some notable advantages, which make it a potentially popular and preferred payment option. Here are some of them.

1. Flexible Installment Plans

Many BNPL companies offer installment plans for up to 24 months. This is a good payment option if you’re planning to buy big-ticket items, such as appliances, laptops, computers, smartphones, and other personal gadgets.

2. 0% Interest Installments on Buy Now, Pay Later Plans

Some BNPL brands offer interest-free installment loans. This could be a more practical payment option than credit cards since you don’t have to cover fees besides the loan principal.

3. Ability to Make Urgent Purchases

Need to replace that broken laptop ASAP but got no cash? Just get a new one right away and pay using the BNPL option.

4. Can be Used for Offline Purchases

Not many realize that Buy Now Pay Later apps can be used for offline shopping. With that, your smartphone may act somewhat like a credit card when paying for your purchases.

5. No Collateral Required

Since BNPL programs are essentially unsecured loans, you won’t have to surrender any assets for your loan to be approved and released.

What are the Disadvantages of Buy Now, Pay Later?

how buy now pay later works - Disadvantages

BNPL loans are not without their share of drawbacks. But you can always avoid such troubles if you take the time to fully understand how Buy Now, Pay Later works. If you lack discipline and a proper mindset, you may experience the following.

1. The Urge to Make Impulse Purchases

Because BNPL is somehow similar to credit cards, it may give you a false sense of security or empowerment when shopping because of the increased purchasing power. As such, you may end up spending way more than your budget allows, which will then lead to debt.

2. The Temptation to Create Multiple BNPL Accounts

Many apps are offering Buy Now Pay Later in the Philippines. Just like how you can get multiple credit cards, you’ll be also able to download multiple BNPL apps and create different accounts. If you don’t shop responsibly, you’ll end up accumulating debts.

3. BNPL Loans with Interest Charges

Because BNPL services are installment loans, expect that some providers may require you to pay interest. Some interest rates may start at 1% per month. That means additional expenses for you when you avail of Buy Now Pay Later in the Philippines.

4. Late Payment Fees and Other Transaction Fees

If you can't pay for the loan by the due date, you'll be charged a late payment fee. Some companies charge 0.5% and up per day that the loan is not paid. Other than this, the BNPL provider may also charge a transaction fee or loan processing fee.

Buy Now, Pay Later Apps in the Philippines: 15 Options for Online Shoppers

Now that you know how Buy Now, Pay Later works, it’s time to look into the following lenders who can help you when the need arises. Check out the following BNPL platforms and their features.

🛒 TendoPay

buy now pay later apps philippines - TendoPay

TendoPay is a fintech brand that allows you to buy now and pay later at popular merchants, such as Lazada, Zalora, 7-Eleven, Vision Express, and The Premium Playground Outlet, among others.[2] You don’t need to have a bank account or credit history to avail of a TendoPay installment loan.

TendoPay issues an initial credit limit of ₱2,000 to ₱30,000. However, on-time payments and frequent use of TendoPay can increase your credit limit.

📌 TendoPay BNPL Key Features

  • Loan amount: ₱2,000 to ₱30,000
  • Loan term: One to 24 months
  • Interest rate: 0% with select partner merchants / may depend on the loan amount or term

🛒 Lazada Loans

buy now pay later apps philippines - Lazada Loans

If you want to know how Buy Now, Pay Later works on popular e-commerce platforms, just take a look at Lazada Loans. Through this program, you can avail of monthly installment plans from Lazada's accredited partners, such as TendoPay, Cashalo, and UnaPay. Upon submission of the application requirements, you may receive notifications on your approval within 24 hours. No need to have a guarantor for this kind of loan.

📌 Lazada Loans Key Features

  • Loan amount: ₱2,000 to ₱50,000
  • Loan term: Depends on the accredited lender
  • Interest rates:
    • 0% for certain promos and partners
    • Regular interest rate: 2% to 5%
  • Late payment fee: Depends on the accredited lender

🛒 LazPayLater

how buy now pay later works - lazada pay later

While Lazada has partnered with various fintech brands to offer Buy Now, Pay Later services, it actually has its own program: LazPayLater. This Lazada BNPL program is currently open to select users only. Through it, you can get a credit limit of up to ₱15,000.

You can use your credit limit to buy products on Lazada. However, you won’t be able to use it to buy fine jewelry and digital goods, such as mobile load, e-vouchers, and gift cards, among others.

One of the best things about this Lazada BNPL is that it doesn’t charge any processing fees, subscription fees, and handling fees. And if you pay the loan within 45 days, you won’t be charged any interest.

📌 LazPayLater Key Features

  • Loan amount: Up to ₱15,000
  • Loan term: 45 days / three, six, nine, or 12 months
  • Interest rate: 0% for 45-day term / May depend on the monthly installment plan chosen
  • Late payment fee: May depend on your loan amount or term

Personal loan in the Philippines

🛒 Grab PayLater

Grab PayLater is another Buy Now Pay Later service in the Philippines that offers 0% interest. It allows you to consolidate all the costs of your Grab services, which you can pay using your GrabPay balance the following month. When you activate this service, you'll be given a pre-approved credit line, which you can use for different Grab services, such as Mart, Car, Taxi, Express, and Food. The costs of the Grab services you’ve availed yourself will be then consolidated into a single bill.

This BNPL service makes a good option if you use the Grab app frequently. You may also earn GrabRewards points for each PayLater transaction.

📌 Grab PayLater Key Features

  • Loan amount: Depending on the pre-approved credit line or on the consolidated costs of the Grab services you’ve availed
  • Loan term: Payable the next month
  • Interest rate: 0%
  • Processing fee: 3.99%
  • Late payment fee: 3.99%

See also: Your Ultimate Guide to Using GrabPay Philippines

🛒 UnaPay

buy now pay later apps philippines - UnaPay

Developed by Digido Finance Corp.,[3] UnaPay offers fast loan approval. Your loan may be approved within 5 minutes, though note that this will depend on your requirements. You can buy items at Lazada using your UnaPay loan credits.

📌 UnaPay Key Features

  • Loan amount: ₱2,000 to ₱50,000
  • Loan term: One to six months
  • Interest rate: 3% to 16% per month, depending on the borrower’s credit score
  • Penalty charge: 0.33% per day until fully paid
  • Late payment fee: ₱800 (one-time payment)

🛒 BillEase

buy now pay later apps philippines - BillEase

Launched in 2017, BillEase commits to helping Filipinos take control of their financial future. BillsEase is also the flagship company of First Digital Finance Corporation. You can use the BillEase loan as your payment option at online shops such as Lazada, Kimstore, Datablitz, and Henry’s Camera.

📌 BillEase Key Features

  • Loan amount: ₱2,000 to ₱40,000
  • Loan term: One to 12 months
  • Interest rate: 3.49% per month

🛒 Cashalo Pay Later

buy now pay later apps philippines - Cashalo

Cashalo is another popular fintech brand that promotes financial inclusion and empowerment among Filipinos. All loans under its platform are financed by Paloo Financing, Inc. You can avail of a 0% interest installment loan with shops such as Lazada, Spyder, Gear Up, Vans, Centroplay, Bikelane, and Motoactive.

📌 Cashalo Pay Later Key Features

  • Loan amount: Starts at ₱2,000
  • Loan term: Every month during your billing date
  • Interest rate: 0% when you pay on time

🛒 CLiQQ Loans

buy now pay later apps philippines - CLiQQ Loans

Through a CLiQQ loan, you can add credits to your CliQQ Wallet that can be used to buy products at 7-Eleven or CliQQ Grocery (www.cliqqgrocery.com). CLiQQ has partnerships with digital loan providers, such as TendoPay, Venio, Lendpinoy, and Plentina.

The loan amount, loan term, interest rate, and fees depend on your selected CLiQQ loan partner.

 

🛒 Shopee SPayLater

buy now pay later apps philippines - Shopee SPayLater

SPayLater is one of Shopee’s payment options that allow customers to buy now and pay later or get an installment loan. However, products from the voucher category and intangible digital products, such as mobile load, mobile data, and bills payment, are exempt from Shopee's BNPL service.

As of the moment, SPayLater is available only for select Shopee users, so there may be a chance that you won’t find this feature in your Shopee app. SPayLater bills can be settled through ShopeePay and other Shopee-supported methods, such as e-wallets, online payment, and OTC.

📌 Shopee SPayLater Key Features

  • Loan amount: Depending on the approved credit limit
  • Loan term:  Up to 12 months
  • Interest rate: 1% to 5% per month
  • Processing fee: 0% to 2% of the total amount
  • Late payment fee: 2.5% to 5% on your bill for the month

🛒 Home Credit

Home Credit has not only shown Filipinos how Buy Now, Pay Later works. It has also helped popularize the said financing plan through its strong presence in different malls throughout the country.

Home Credit’s Buy Now, Pay Later program in the Philippines gives borrowers access to a diverse catalog of products. You can buy mobile phones, computers, furniture, appliances, sporting goods, e-bikes, and even musical instruments.

What makes Home Credit popular among consumers is its fast and easy application. All you need to provide are two valid IDs. On top of that, you can get approval within just a few minutes.

 

📌 Home Credit Key Features

  • Loan amount: Up to ₱60,000 (based on Home Credit’s loan calculator)[2]
  • Loan term: Six to 24 months
  • Interest rate: Depends on the loan amount and your down payment.
  • Processing fee: 3% of the financed amount
  • Collection charge: ₱200
  • Late payment fee:
    • ₱400 if payment is past due for 30 days
    • ₱600 if payment is past due for 60 days
    • ₱800 if payment is past due for 90 days

🛒 Plentina

buy now pay later apps philippines - Plentina

With an initial loan amount of ₱100, Plentina is one of the Buy Now, Pay Later apps in the Philippines that you can use for small and everyday purchases such as groceries. Nevertheless, more loan offers will be available to you if you consistently use Plentina services and prove that you’re a good borrower.

Plentina said that it wouldn’t charge any interest during its launch phase. However, keep in mind that it will charge a service fee, which will depend on your repayment period. For instance, you won’t need to pay the service fee if you pay your loan within 14 days. If your payment is 60 days late, Plentina will charge you the service fee, amounting from 9.5% to 14%.

📌 Plentina Key Features

  • Loan amount: Starts at ₱100
  • Loan term: 14 days to two months
  • Interest rate: None[3]
  • Service fee: 5% to 14% (depending on the repayment period)

🛒 Atome

buy now pay later apps philippines - atome

Love shopping for fashionable items? Atome can cover for you in case you’re short on cash right now. This Buy Now, Pay Later app in the Philippines splits your bill into three equal payments across three months. What makes Atome a good BNPL option is that it doesn’t charge any interest. However, if your payment is late, it will charge you a one-time administration fee worth ₱300.

Atome’s partner brands include Zalora, Aldo, Garmin, HairMNL, The SM Store, and Rustan’s. Non-fashion partners are Boozy, Fitness First, Agoda, and Linen and Homes.

📌 Atome Key Features

  • Loan amount: Starts at ₱100
  • Loan term: Three months
  • Interest rate: None
  • Administration fee: ₱300

🛒 GCredit

GCredit

If you have a GCash account, you may want to use your GCredit. Developed with CIMB Bank, GCredit is simply your personal credit line that you can access in your GCash app.

However, this Buy Now, Pay Later program is available only to fully verified users who have high GScores. For context, GScore is the total trust rating from GCash, which is based on how much a person uses GCredit to pay bills or other purchases.

Just like how other Buy Now, Pay Later programs work, GCredit doesn’t require a guarantor or collateral.

📌 GCredit Key Features

  • Loan amount: Up to ₱10,000
  • Loan term: Monthly basis based on the statement schedule
  • Interest rate: 5% per month
  • Late payment fee:
    • ₱200 if payment is one to 30 days late
    • ₱600 if payment is 31 to 60 days late
    • ₱400 if payment is 61 to 90 days late
    • ₱600 if payment is more than 90 days late

🛒 GGives

GGives is another BNPL program available on GCash. But how does this Buy Now, Pay Later loan differ from GCredit?

Foremost, GCredit is a revolving credit line powered by CIMB Bank. A revolving credit line means that you can always access it as long as you return the borrowed money plus the interest on time. Because you have a credit line, you can have multiple transactions at a time.

GGives, on the other hand, is an installment loan powered by Fuse, a subsidiary of GCash. In contrast with GCredit, GGives allows only one active loan at a time. You can only reapply once you’ve settled your dues.

GGives has a much higher loan amount to offer than GCredit, making it ideal for big purchases such as electronics. However, it has a much higher interest rate than GCredit.

📌 GGives Key Features

  • Loan amount: Up to ₱50,000
  • Loan term: Three, six, nine, and 12 months
  • Interest rate: 0% to 5.49%
  • Late payment fee: 1% of your loan amount every missed due date

🛒 JuanHand

JuanHand

JuanHand is another popular BNPL app that you may want to check out. It provides quick, seamless, and affordable financial access to creditworthy yet underserved borrowers. With that, it targets people in the province and workers, such as tricycle drivers and the like.

JuanHand makes borrowing inclusive by taking away the complicated bureaucracy. It requires only one valid ID from its clients. It also differentiates itself from other Buy Now, Pay Later platforms in the Philippines by building a reliable customer service department whom clients can contact via the JuanHand app seven days a week.

What makes JuanHand appealing to the masses is that it doesn’t look at the borrower’s credit history.[4] So, if you think your credit history is quite unfavorable, you may want to give this platform a try.

📌 JuanHand Key Features

Loan amount: ₱2,000 to ₱15,000
Loan term:
Three to six months
Interest rate:
30% maximum APR (annual percentage rate)

How Should I Pay an Installment Loan?

This will depend on your preferred Buy Now, Later apps in the Philippines. But a lot of them use the same repayment outlets. Usually, borrowers can pay their installment loans through the following repayment channels: GCash, Maya, GrabPay, 7-Eleven, Bayad Center, LBC, Cebuana Lhullier, and bank transfer.

Final Thoughts

On the surface, BNPL programs are a powerful tool that allows you to buy something that your wallet cannot afford at the moment. And with inflation rates going up, they’ve undeniably become a popular financing option these days, with some borrowers using it to buy daily essentials such as groceries.

However, if you don’t take the time to learn how Buy Now, Pay Later works, you’re bound to make some mistakes. For instance, relying on it too much may make you end up accumulating more debts. Eventually, you may find yourself borrowing money again just to settle those financial obligations. This is an addressable concern, though. Incorporating discipline and practicality into your shopping habit can help you avoid big problems.

Personal loan application

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Jay is a marketing communications professional who specializes in short-form and long-form content. He has written ads for TV, radio, print, and digital. He has also produced corporate blogs, magazine features, white papers, product listings, reviews, and press releases for clients here and abroad. When he’s not writing, Jay plays the piano or takes pictures for his visual diary. Follow Jay on LinkedIn.