Bagging A Bargain

BNPL gives you instant gratification, but you still need to be careful to live within your means

Q What is a buy now, pay later (BNPL) service?

BNPL is a modern solution to cost of living pressures and typically allows customers to buy goods or services without paying upfront fees or interest. BNPL services are considered as credit providers.

PETER GRAY

Q How do BNPL services work and are they safe?

They work in a similar fashion to layby, where you buy a product and pay for it in two or more installments before taking it home. But with BNPL, instead of securing an item for later purchase, you receive your goods or services upfront.

BNPL is designed to make purchases easy to manage by spreading costs into more digestible interest-free amounts. While it is a completely safe and secure method of transaction, as with any financial services product, consumers should pay close attention to any associated fees.

Customer care and due diligence are also immensely important and something we take seriously when it comes to application approvals and customer support.

LIBBY MINOGUE

Q What products can I purchase with a BNPL service?

For many BNPL services, you can only access the products of participating retailers. For Citi credit card holders, installment options allow customers to essentially convert their credit card balance to a “pay later” plan.

CHOONG YU LUM

Q Does it cost to use a BNPL service?

Each BNPL fee structure is different and people should do their research prior to signing up.