“Buy Now Pay Later” is pretty similar with credit card. With both methods of payment, you can have the items you bought without paying immediately, which offers more flexibility to your purchase. Americans are used to make payments via credit cards, and Buy Now Pay Later is gradually gaining its popularity. So, should we give up credit cards and turn to this new trend?

Wait, not yet. There are still a lot of differences between “Buy Now Pay Later” and credit cards.

Application Procedure

“Buy Now Pay Later” offers much easier application comparing with credit cards. You don’t have to fill out detailed forms about your current debts, your income or ability to repay outstandings.

“Buy Now Pay Later” providers only need some basic information of your financial status and repayment history, which leads to easier access of funds.

Amount of credit

Typically, a “Buy Now Pay Later” agreement offers limited amount of credit of $500-$1000, according to your shopping behavior. Credit cards usually offer a larger amount of money depending on your income.

Range of application

Credit card is the most popular way of paying worldwide. In contrast, not many retailers offer “Buy Now Pay Later” services to customers.


Though “Buy Now Pay Later” is gaining popularity, it’s still developing. In some scenario, you may find it much convenient than shopping with credit cards. However, credit cards remain to be the mainstream in most cases. The complicated application of credit card also guarantees the ability to repay.

One thought on “What’s the difference between Buy Now Pay Later and Credit Cards?”

  1. who pays for this ? does the shop owner cover the costs ? so will prices go up on the goods , so as more people use paylater, everyone else will pay towards it??

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