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 adoption of such cashless services.[1]
The adoption of Buy Now, Pay Later financing programs can also be attributed to the constantly rising prices of goods. Traditionally, Buy Now, Pay Later was used for big-ticket items, such as appliances or gadgets. But now, some use it to cover daily essentials, such as groceries.
In this article, you’ll see how Buy Now, Pay Later works, plus its advantages and pitfalls. We've also listed some of the leading Buy Now, Pay Later apps in the Philippines.
What Does Buy Now, Pay Later Mean?
In the Philippines, Buy Now, Pay Later (BNPL) or sometimes Shop/Loan Now, Pay Later 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 Apps Work in the Philippines
When you shop online, you're presented with different payment modes, usually via credit card, debit card, or COD. Your favorite retailer may also offer a Buy Now, Pay Later option.
So how to use Buy Now, Pay Later? When you choose to pay using BNPL, you can buy the product without shelling out cash right there and then.
Note that you’re expected to pay it back by the agreed date. If you choose to pay in installments, the payment will be spread across the agreed number of months.
In simpler terms, a 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?
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BNPL has some notable advantages, which make it a popular and preferred payment option. Here are some of them.
👍 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.
👍 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.
👍 Useful for Urgent Purchases
Need to replace that broken laptop ASAP but got no cash? Get a new one right away and pay using the BNPL option.
👍 Suitable for Offline Purchases
Not many realize that Buy Now Pay Later apps can be used for offline shopping. Your smartphone acts like a credit card when you pay for your purchases.
👍 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?
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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 encounter the following:
👎 The Urge to Make Impulse Purchases
Because BNPL is similar to credit cards, it may give you a false sense of security or empowerment when shopping because of your increased purchasing power. As such, you may end up spending way more than your budget allows, which will then lead to debt.
👎 The Temptation to Create Multiple BNPL Accounts
There are many Buy Now Pay Later apps in the Philippines. Just like how you can get multiple credit cards, you can also download multiple BNPL apps and create different accounts. If you don’t shop responsibly, you’ll end up accumulating debts.
👎 Ballooning Interest Charges
Because BNPL services are installment loans, expect providers to require you to pay interest. Some interest rates start at 1% per month. That means additional expenses for you when you avail of Buy Now Pay Later in the Philippines.
👎 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 for each day that the loan is not paid. Other than this, the BNPL provider may also charge a transaction fee or loan processing fee.
Best Buy Now, Pay Later Apps in the Philippines: 17 Options for Online Shoppers
Now that you know how Buy Now, Pay Later works, it’s time to look into lenders who can help you when the need arises. Check out the following BNPL and installment apps in the 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. 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: Up to to 24 months
- Interest rate: 0% with select partner merchants / may depend on the loan amount or term
🛒 Lazada Loans
Shop online, pay later! 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 for a guarantor for this kind of loan.
Lazada Loans Key Features
- Loan amount: ₱500 to ₱50,000
- Loan term: Depends on the accredited lender
- Interest rates:
- 0% for certain promos and partners
- Regular interest rate: 2% to 4%
- Late payment fee: Depends on the accredited lender
🛒 LazPayLater
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 offers 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.
LazPayLater Key Features
- Loan amount: Up to ₱15,000
- Loan term: 45 days / three, six, nine, or 12 months
- Interest rate: May depend on the monthly installment plan chosen
- Late payment fee: May depend on the loan amount or term
🛒 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%
🛒 UnaPay
Developed by Digido Finance Corp., 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 10% per month, depending on the borrower’s credit score
- Penalty charge: 0.33% per day until fully paid
🛒 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: Two to 24 months
- Interest rate: 3.49% per month
🛒 Cashalo PayLater
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 an installment loan with shops such as Robinsons Department Store, FC Home Center, Fila, World Balance, DiviMart, and more.
Cashalo PayLater Key Features
- Loan amount: Up to ₱2,000
- Loan term: Every month during your billing date
- Interest rate: 0% when you pay on time
🛒 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
SPayLater allows 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
🛒 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.
This Buy Now Pay Later app offers 0% 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: ₱500 to ₱50,000
- Loan term: Three months
- Interest rate: None
- Administration fee: ₱300
🛒 Home Credit
Looking for an app like Atome? Home Credit not only showed Filipinos how Buy Now, Pay Later works—it 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: Depending on the personalized offer
- Loan term: Six to 18 months[2]
- 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
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.
Keep in mind that Plentina charges 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)
🛒 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 ₱30,000
- Loan term: 45 days
- Interest rate: 5% to 7% per month
- Late payment fee:
- ₱200 if payment is one to 30 days late
- ₱300 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
- ₱200 if payment is one to 30 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 higher loan amount to offer than GCredit, making it ideal for big purchases such as electronics. However, it also has a higher interest rate than GCredit.
GGives Key Features
- Loan amount: Up to ₱125,000
- Loan term: Up to 24 months
- Interest rate: 0% to 5.49%
- Late payment fee: 1% of your loan amount every missed due date
🛒 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 that 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: Up to three months
- Interest rate: Up to 12%
🛒 Digido Quick Loans
This online lending platform offers loan amounts ranging from ₱1,000 to ₱25,000. If you're a first-time borrower, you can apply for an amount up to ₱10,000. Once you prove your worthiness as a borrower, you can get up to ₱25,000.
While the typical interest rate is at 11.7% monthly, first-time borrowers can enjoy more leniency with a rate of 0%! Also, you won't have to deal with any commissions and hidden charges.
If you happen to be in urgent need, you'll be glad to know that you can get approved within the same day of your application.
Digido Quick Loans Key Features
- Loan amount: ₱1,000 to ₱25,000
- Loan term: One to six months
- Interest rate: Up to 11.7% per month
🛒 Tonik Shop Installment Loan
Eyeing a pretty big purchase, such as an air conditioning unit, TV, refrigerator, laptop, oven, or washing machine? With a Tonik Shop Installment Loan, you can get a loan amount of up to ₱100,000 at Tonik's partner stores.
If your approved amount can cover it, you can purchase up to three items with one loan. Just download the Tonik app and register, select the Shop Installment Loan, head to any partner store, scan the QR code, and complete your application from there. You need only one valid ID to apply.
Note that while there are no processing fees, you need to make a minimum 10% downpayment.
Tonik Shop Installment Loans Key Features
- Loan amount: ₱5,000 to ₱100,000
- Loan term: Up to 12 months
- Interest rate: 4.5% fixed monthly interest rate
How Should I Pay an Installment Loan?
This will depend on your preferred Buy Now, Pay Later app in the Philippines. That said, 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 Lhuillier, and bank transfer.
Final Thoughts
On the surface, Buy Now, Pay Later apps in the Philippines are powerful tools that allow you to buy items your wallet cannot afford at the moment. And with prices of goods going up, they’ve undeniably become a popular financing option these days.
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 lead to debts. Eventually, you may find yourself borrowing money again just to settle financial obligations.
This is an addressable concern, though. Incorporate discipline and practicality into your shopping habits to avoid big problems.
Meanwhile, if you need higher loan amounts for bigger purchases, consider a personal loan instead. Compare your options and apply through Moneymax:
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Sources:
- [1] Buy Now, Pay Later Seen Gaining More Popularity in Philippines (The Philippine Star, 2022)
- [2] Secure your dream products with a Home Credit Product Loan!
- [3] Plentina
- [4] JuanHand FAQs
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