The buy now, pay later (BNPL) concept involves purchasing products on credit and paying later. This is similar to using a credit card, where buyers can pay for the purchase on credit and pay back within the given time later.
However, through this model, customers usually get a wallet or credit limit with an option to pay back in installments over a period of time. The feasibility and one-click payment option offered by many BNPL providers contribute to the wide acceptance of the method.
According to recent research, the BNPL industry is growing rapidly and is expected to reach $166B by 2023. This is certainly an indicator that companies need to start positioning their strategies for BNPL.
The BNPL trend is rising in the UK, with many vendors and finance companies offering buy now, pay later options to users. Most of these options are interest-free, with 4 to 12-month repayment options.
Here’s a list of the top 10 BNPL companies offering great deals in the UK in 2022.
Headquarters: Stockholm, Sweden/Columbus, Ohio, US
Founders: Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson
CEO: Sebastian Siemiatkowski
Klarna's Monthly Unique Visitors: 3,868,769
Klarna is one of the most widely recognized BNPL companies offering three BNPL methods. Users can pay in 30 days, create three installments (interest-free), or finance their purchases with monthly installments paid in time.
Headquarters: Auckland, New Zealand
Founders: Gary Rohloff and Robyn Rohloff
CEO: Gary Rohloff
Laybuy's Monthly Unique Visitors: 223,993
Laybuy's Order Volume: 10,000 - 50,000
Laybuy's Web Sales: $5M - $10M
Laybuy is another BNPL company allowing users to make a purchase and instantly create six installments for the same. There’s no interest or sign-up fee.
Users can break their purchase payments into six small installments, which are deducted weekly from their bank account.
Headquarters: Manchester, UK
Founder: Mark Sicola
CEO: Carl-Olav Scheible
Clearpay's Monthly Unique Visitors: 221,148
Clearpay's Web Sales: $5M - $10M
Clearpay is a sister-concern of Afterpay, bringing a new BNPL trend to the UK. Users can split their total amount into four equal hassle-free installments that are to be paid in two weeks’ time each.
Headquarters: New York, US
Founders: Gil Don and Alon Feit
CEO: Nandan Sheth
Splitit's Monthly Unique Visitors: 33,186
Users can use Splitit to split their purchases with the help of their existing credit lines. They can do this by using their credit card for BNPL.
Users can then pay an installment varying from a range of 3 to 24 months without paying any interest. However, if they delay payments, the credit card company might incur charges.
Headquarters: London, UK
Founders: Philip Belamant
CEO: Philip Belamant
Zilch's Monthly Unique Visitors: 199,709
Zilch is a virtual card that can be used for buy now, pay later transactions. Users can purchase products and split the payment into four easy installments.
With every transaction, users are charged 25% of the amount, with the first quarter deducted at checkout. The rest has to be paid after two, four, and six weeks.
Headquarters: England and Wales, United Kingdom
Founders: Shachar Bialick
CEO: Shachar Bialick
Curve's Monthly Unique Visitors: 63,910
Curve is a UK-based company offering buy now, pay later options to buyers. It is a great app for financial transactions.
Users can pay back any card payment transactions from different merchants in one year’s time. While the company started testing the given technology in 2020, it received accreditation in 2021 by the Financial Services Authority.
Headquarters: San Jose, California, US
Founders: Peter Thiel, Max Levchin, Yu Pan, Ken Howery, and Luke Nosek
CEO: Dan Schulman
PayPal's Monthly Unique Visitors: 35,829,535
PayPal is an American company successfully operating in the UK and many other countries, supporting online transfers via electronic mediums.
Recently, the company launched 'Pay in 3' in the UK to provide buy now, pay later options.
Businesses using this service can allow customers to use BNPL for purchases of £45-£2,000. The repayment option includes three hassle-free and interest-free monthly repayments.
Headquarters: Manchester, United Kingdom
Founder: Louis Alexander
CEO: Samantha Fogerty
Payl8r's Monthly Unique Visitors: 4,782
Payl8r was founded recently to offer a convenient method for in-store and online payments. It is an attractive credit card alternative with many financing options that encourages people to purchase more.
For audiences with a poor credit history, thin credit, students, and others, Payl8r offers lower interest rates of around 2% a month.
Headquarters: Sydney, Australia
Founders: Larry Diamond
CEO: Larry Diamond
Zip's Monthly Unique Visitors: 460,908
Zip is a recent BNPL company allowing customers to make a purchase now and pay later in four easy installments.
They have collaborated with hundreds of stores that allow BNPL options both online and in-store. Users can make payments in four installments over six weeks.
Headquarters: Staffordshire Reef, Victoria, Australia
Founders: Rob Flowers
CEO: Rob Flowers
DivideBuy's Monthly Unique Visitors: 7,832
DivideBuy's Order Volume: 500 - 1,000
DivideBuy's Web Sales: Less than $1M
DivideBuy helps users leverage the BNPL option without paying any interest. Users can choose to pay in installments across the range of 2 to 12 months. There are also no early payment charges on this spending.
The buy now, pay later trend is growing, encouraging more and more companies to adopt this option. Some big giants like IKEA are already offering BNPL services in collaboration with the above vendors.
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