3 reasons you might use Buy Now Pay Later for your Christmas shopping

By Polly Fleeting · · 2 min read
Fact Checked
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woman christmas shopping using buy now pay later

As we head into October, the jolly road to Christmas is drawing into focus. And what goes hand in hand with the holidays? Gift shopping. 

Whether you get your Christmas shopping in early with sales like Black Friday and Cyber Monday, or you leave it to later on, now might be the time to sort out what payment method you’ll use. 

The key of course is making sure you don’t end up knee deep in Christmas debt, so planning early and setting a budget is always a good idea. 

With that in mind, one popular payment method to consider might be Buy Now Pay Later (BNPL). 

Mozo's 2021 Buy Now Pay Later Report found that over half of BNPL users are turning away from traditional banking options and 42% have been using BNPL for three or more years.

So the question is… why might you opt for BNPL this Christmas? We’ve broken it down into three key reasons:  

1. Budget your holiday spending

If you use Buy Now Pay Later responsibly, it can be a great tool for budgeting. 

How? Well, BNPL platforms split a single purchase up into a number of equal instalments paid weekly, fortnightly or monthly. This means you won’t have to front up the full cost of the item when you first buy it, allowing you to spread the cost of your Christmas spending.

Plus, because customers can usually manage repayments through their BNPL provider’s app, it makes it simpler to view upcoming repayments and keep track of purchased items. 

But Beware: It’s important to not fall into the overspending trap. Make sure you keep track of how many purchases you make and stay on top of your repayments to avoid late fees. Also note, missing BNPL repayments may leave a negative mark on your credit report. 

2. Interest free repayments 

Unlike a credit card, many BNPL platforms don't charge interest on purchases. Meaning customers can pay down a purchase over a matter of weeks or months without forking out interest repayments.  

Keep in mind though, you could be charged a monthly fee instead, which may only be worth it if you use the platform regularly. 

3. Potential discounts and offers 

Some BNPL platforms offer discounts and coupons with partner retailers. These types of offers may come in handy around the Christmas period as you could snag a bargain. 

These offers differ from platform to platform, so it may be worth checking out which BNPL provider is in partnership with retailers you intend to shop with, and if they offer a discount. 

Also don’t forget that some retailers don’t accept particular BNPL platforms, so do your research before signing up. 

Want to find out more about Buy Now Pay Later? Head to our Buy Now Pay Later hub for providers and more info! Or if you want to weigh up some interest-free credit card options instead, take a look at the table below!

Compare 0% interest credit card offers

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Last updated 22 November 2024 Important disclosures
  • Citi Rewards - Balance Transfer and Purchases offer

    Enjoy 0% p.a. for 15 months on purchases and balance transfers. Balance transfer reverts to cash advance rate. Earn up to 1 Citi reward Point per $1 on eligible transactions. Access up to 3 months complimentary International Travel Insurance and up to 14 days Domestic Travel Insurance with a Citi Rewards Credit Card when meeting eligibility criteria. Apply for a credit limit from $2,000 up to $100,000. Balance transfer fee applies. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.

    Balance transfer rate
    0% p.a. for 15 months and then 22.24% p.a. (2.00% balance transfer fee)
    Purchase rate
    0% p.a. for 15 months then 21.49% p.a.
    Annual fee
    $199
    Compare
    Go to site
    Details
  • Westpac Flex Card

    Balance transfer rate
    No current offer
    Purchase rate
    0% p.a.
    Annual fee
    $120 $10 monthly fee waived if the outstanding balance on the previous statement is paid in full by the due date.
    Compare
    Find out more
    Details
  • NAB StraightUp Card

    Pay no interest and no late payment fees, just a $20 monthly fee for a $3,000 credit limit. If you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Pay no foreign currency fees when you buy online or overseas.

    Balance transfer rate
    No current offer
    Purchase rate
    n/a
    Annual fee
    $360 $30/month - waived if no spend & no balance owing
    Compare
    Find out more
    Details
  • Community First Bank n0w Credit Card

    Balance transfer rate
    No current offer
    Purchase rate
    n/a
    Annual fee
    $228 Monthly fee is waived if account has a $0 balance and if card isn't used during the calendar month.
    Compare
    Find out more
    Details

^See information about the Mozo Experts Choice Credit Card Awards

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