💳 Buy Now, Panic Later? The Real Deal with BNPL in the Philippines

Ever been tempted by that ₱500 lang today, 0% interest deal on Shopee or Lazada? You’re not alone.

Buy Now, Pay Later (BNPL) schemes are everywhere (from online shops to in-store deals) and they sound like the perfect solution especially when you’re short on cash. But is it actually a smart financial move?

Let’s break it down: the pros, cons, real examples, and 3 shocking truths you should know before tapping that Pay Later button.

In today’s edition, we’ll go over:

• Pros and Cons of Buy Now, Pay Later (BNPL)

• Common BNPL options in the Philippines

• 3 surprising truths of BNPL

TLDR;

The Bottom Line

• BNPL is still utang: It’s tempting and convenient, but missed payments = high interest, late fees, and a damaged credit score.

• Use it only for needs: If it’s 0% interest, fits your budget, and for essentials (not wants), it can be useful.

• BNPL traps are real: Apps like Shopee, Lazada, and BillEase make it easy to overspend. Always read the fine print before you click “Pay Later.”

The content

The Pros of BNPL

• Split payments into bite-sized chunks: Helps you buy bigger-ticket items without shelling out the full price at once.

• 0% interest promos: If paid on time, some deals genuinely cost nothing extra.

• No credit card required: You can access short-term credit without applying for a traditional card.

 The Cons of BNPL

• Hidden interest and fees: If you miss a payment, expect annual interest rates of up to 15–25% or late charges.

• Encourages impulse spending:  It's easier to justify a want, not a need, when you only pay ₱200 today.

• Debt snowball risk:  Using multiple BNPL options across apps can leave you juggling due dates and buried in utang. 

The Content (Part 2)

Common BNPL Options in the Philippines

Here are 3 popular examples used in the Philippines:

1. Shopee SPayLater

• Interest rate: 1–5% monthly (12-60% annually)

• Terms: 3, 6, or 12 months

• Shocking bit: Late fees can be ₱100+ per cycle and may affect your credit score (yes, they report to credit bureaus).

2. Lazada Loan / LazPayLater

• Interest rate: 3.5–4.5% monthly (42-54% annually)

• Terms: 2–12 months

• Caution: Once approved, it's very easy to keep borrowing even without noticing how much you’ve stacked up.
  

3. BillEase

• Interest rate: ~3.49% monthly (up to ~41.88% annually)

• Terms: Up to 12 months

• Good to know: also provides 0% interest grace periods (Pay with Grace) with select merchants for 3-6 months. After the grace period, the standard 3.49% interest rate applies.

3 Shocking Truths About BNPL in the PH

1. It can ruin your credit score.
   Missed payments are reported to CIC/CIBI and TransUnion, making future loans harder to get (check link/s below to know more about credit bureaus and your credit report)

2. Many “0%” offers still charge processing fees.
   That ₱0 interest? Some sneak in ₱50–₱150 monthly “service fees” anyway.

3. It’s becoming the new utang trap.
   Some users stack 5+ BNPL accounts with no clear repayment plan—instant lifestyle inflation without salary growth.

Final Thoughts

BNPL can be a useful tool when used intentionally, but let’s not sugarcoat it: it’s still utang.

If you can’t buy it with cash, ask yourself: Do I really need this, or is it just the app talking?

Your financial peace > short-term dopamine hit.

Stuff Worth Sharing

The Link Lowdown

• CIC Credit Report: FAQs regarding your credit report (includes who can access your credit data, whether or not you can clear your credit history, etc.). Interesting stuff 

• Credit Info List - shows the list of lending entities submitting credit data to CIC

• Follow us on IG and Tiktok @myiponchallenge - we post cool stuff there too.