Between many shoppers, Buy Now, Pay Later (BNPL) has now become a popular payment option. BNPL, which is promoted by firms, lets customers make purchases in manageable installments. The fact that all these installments are frequently interest-free is what attracts consumers. But how could they stack up against credit cards?

The BNPL is on the upswing.

As shown in a C+R Research, 51 percent of consumers utilized BNPL during the outbreak, indicating that COVID-19 aided BNPL’s ascent to prominence. The payment mechanism appears to have benefited from the rise in online purchasing as well as by boosting ease.


Credit cards are accepted.

Credit cards, on the other hand, are dependable financial options. In addition, credit cards can be used practically anywhere. Credit card debts, on the other hand, rise over time until the cardholder pays off the loan. According to the same research referenced above, 38% of participants said they will use BNPL instead of credit cards.

The confrontation

On just one hand, we got BNPL, with its dependability and zero-interest policies, and then, on the other hand, you have credit cards, which come with perks and financial history that can be useful to credit bureaus. As per NerdWallet, card issuers are starting to provide their own BNPL mix.

Financial banks and institutions issue credit cards, which are used to purchase products and services on loan. They come with a variety of terms, and customers must repay the credit balance plus a variety of interest rates. Digital and Bank payment apps offer BNPL, which is based on immediate credit. BNPL offers reduced or no interest rates than credit cards.

According to the C+R Research survey, 45 percent of respondents say BNPL like lay-buy is better to use than credit cards. 44 percent believe it is also more flexible. However, it is possible that BNPL choices are only available from specific retailers and on certain purchases.


As previously stated, BNPL is available with or without interest charges, making the latter a sort of interest-free borrowing for the consumer. BNPL providers profit from merchant fees in this situation, similar to how payment networks profit from card fees in the based-on credit cards.

BNPL normally has interest rates that are equivalent to conventional loans for loans with longer durations. Whenever a shopper wants to use BNPL, it does not need a credit check, which means that access to finance is faster.

Credit cards have always been provided only when a credit check has been performed on the customer. Credit cards may be difficult to obtain for those with poor credit scores. It’s also crucial to keep in mind that credit card fees are subject to fluctuation, and they frequently fall on the high end of the scale. Consumers, on the other hand, will not be charged interest when they pay their bills on time.

Do you prefer rewards or ease of use?

When you purchase things with a credit card, you can receive important cashback, points, or miles. If you have strong credit, you should be able to locate a card that offers at least 2% cashback on each and every transaction, which can add up to significant savings. Other perks, such as purchasing insurance and protection, are usually included with credit cards.

These types of rewards and safeguards aren’t always available with BNPL providers, and credit-reporting benefits aren’t usually available with credit cards.


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