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

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 - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
  • Apply By 28 February 2022
    placeholder
    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases for up to 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 18 months then 11.99% p.a.
    $45
    Go to site
    Details
  • Featured Product
    placeholder
    Westpac Low Rate

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends November 30th 2021. T&C's and exclusions apply.

    Balance transfer rate
    Purchase rate
    Annual fee
    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
    13.74% p.a.
    $59 $0 in the first year
    Go to site
    Details
  • placeholder
    St.George No Annual Fee

    0% p.a. for 12 months on APR requested at card application. The special promotional purchase rate applies from card approval, after the promotional period, the rate will switch to the variable purchase rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends February 24th 2022.

    Balance transfer rate
    Purchase rate
    Annual fee
    2.99% p.a. for 15 months and then 21.49% p.a.
    0% p.a. for 12 months then 20.74% p.a.
    $0
    Go to site
    Details
  • placeholder
    BankSA No Annual Fee

    0% p.a. for 12 months on APR requested at card application. The special promotional purchase rate applies from card approval, after the promotional period, the rate will switch to the variable purchase rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends February 24th 2022.

    Balance transfer rate
    Purchase rate
    Annual fee
    2.99% p.a. for 15 months and then 21.49% p.a.
    0% p.a. for 12 months then 20.74% p.a.
    $0
    Go to site
    Details
  • Featured Product
    placeholder
    Westpac Low Rate - Cashback Offer

    Enjoy a super low rate of 13.74% with 55 days interest free plus $400 Cashback with $4k+ spend on eligible purchases within 4 months of card approval. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends November 30th 2021. T&C's and exclusions apply.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    13.74% p.a.
    $59 $0 in the first year
    Go to site
    Details

^See information about the Mozo Experts Choice Buy Now Pay Later Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.