Different ways to track buy now, pay later instalment payments

Buy now, pay later (BNPL) is a form of credit that allows shoppers to pay off purchases in a set number of instalments. Staying on top of payment schedules can be challenging, especially when juggling multiple BNPL plans.

The risk? Missed payments may lead to late fees and penalties and even impact an individual’s credit score or ability to borrow funds in the future.

There are different ways for BNPL users to track shopping instalments and stay organised. Some examples are below.

What are buy now, pay later instalments?

BNPL is a form of credit that allows customers to make purchases immediately but pay for them over time via an instalment payment plan. This payment method can offer customers a flexible way to pay, by breaking down payments into smaller amounts. The process for paying and potential fees and charges will vary depending on the buy now, pay later service that is used.

Typically, a potential customer would apply for a BNPL loan at checkout and agree to the terms and conditions for the loan. Payments are spread out over time and the repayment schedule should be clearly outlined. One example of a BNPL service is PayPal Pay in 4. The first payment is made at the time of purchase and the rest is paid in 3 payments – one every two weeks. PayPal Pay in 4 does not have any late fees or interest for customers, but it's always important to check the terms and conditions associated with a BNPL product because some BNPL providers may charge fees and other associated costs.

While BNPL can be convenient, it's important for consumers to carefully consider their financial situation and the terms of their agreements in relation to fees charges and interest payments.

Different ways to keep track of instalments

If a customer has multiple BNPL loans, keeping track of instalments may seem daunting. There is a range of tools that can help.

Automatic Payments

One way to stay on track with an instalment payment plan is to manage payments through an automatic payments function. This allows for payments to be scheduled automatically to come out of the payee’s nominated funding method before or on a payment due date. This may help customers avoid missed payments and potential late fees that come with them.

In-app instalment tracking

Many BNPL providers offer apps to help track repayment schedules. The PayPal app allows Pay in 4 users to track their Pay in 4 payments. Some potential benefits of using an app to track instalment payments include:

• Notifications when a payment is due.
• Payment tracking on purchase plans.
• Automatic payments.
• Staying on top of payment schedules, potentially making it easier to budget.

Set reminders

Constant reminders can be a way to ensure the right amount is in a customer’s nominated funding method to cover each instalment payment ahead of the due date. Some examples of how this could be done include: setting up payment reminders in a phone or laptop calendar, or in a notes app.

Low cost or free tools

When it comes to managing personal budgets and tracking expenses, there are low-cost and free tools available. For example, BNPL instalment payments can be added to and tracked in an Excel spreadsheet.

Potential benefits of tracking BNPL instalments

There are potential benefits to tracking buy now, pay later payments. Some examples include:

• Knowing what’s owed and when.
• Avoiding potential late fees and penalties.
• Managing an individual’s budget and making sure BNPL payments fit in it.