Buy Now, Pay Later (BNPL) Explained:
How it Works & Benefits

Ever wish you could skip the sticker shock and pay for something without worrying about credit card interest? Buy Now, Pay Later (BNPL) might be just what you need. It offers a flexible, stress-free shopping experience.

If you’re considering upgrading your gadgets, booking your dream vacation, or managing daily expenses, BNPL lets you quickly spread payments. But before jumping in, it's worth understanding its mechanics, perks, and what to watch out for.

This blog will teach you what this payment option is all about and why it’s right for you.

Buy Now, Pay Later Definition

Buy Now, Pay Later (BNPL) is a payment option that allows you to make a purchase immediately without committing to the full amount upfront and paying interest.

Alternatively known as "shop now, pay later," this concept has quickly gained popularity, especially among avid shoppers looking for flexible spending options.

Here's how it typically works:

1. You purchase at a participating store or merchant.
2. The cost is split into equal installments, usually across three, six, nine, or 36 months.
3. You pay monthly after a short grace period, without interest if you follow the payment terms.

After completing this short process, you can take home your new purchase without draining your wallet. Easing financial hesitation at checkout helps lenders and merchants increase sales.

Types of BNPL schemes

You can choose from the following BNPL plans:

• Short-term installments: You can split payments over three to six months.
• Long-term installments: For larger purchases, you can spread payments over 12-36 months. This option is perfect for big-ticket items.
• Zero-interest programs: You can opt for installments without additional costs if you pay on time.

BNPL is a win-win for you and retailers, but responsible spending is always key to making it work in your favor.

Know More About RCBC Credit Cards' Buy Now Pay Later

RCBC Credit Cards make the perks of BNPL an easy experience. Here’s how to take advantage of it.

1. How to avail
   
   You can enjoy BNPL with your RCBC Credit Card—exclusively for in-store transactions. Before making a big purchase, confirm with the store if they're an RCBC partner. You can also check this list of certified merchants beforehand.
2. When to pay
   
   The best part? You buy now and pay three months later! For example, if you purchase a refrigerator today, your first monthly installment might not appear on your Statement of Account (SOA) for up to three months, depending on your credit card's billing cut-off.
   
   Terms may vary per merchant, but this grace period makes it easy to plan your finances and avoid any sudden surprises.
3. Duration or terms available
   
   Flexible repayment durations make BNPL an even more attractive option. You can choose from various payment durations to stretch out payments. This flexibility allows you to customize installments to your financial capacity while enjoying the products you love.
4. Earn reward points on installment purchases
   
   Worried about missing out on credit card benefits? Don't be! Even when you convert purchases into easy terms with 0% installment, you still earn reward points. Whether buying gadgets, furniture, or even booking a hotel, your points keep adding up—making your spending even more rewarding.
5. No add-on interest
   
   One of the biggest benefits of having an RCBC Credit Card is its 0% interest BNPL feature. We don’t have hidden fees or make surprise charges as long as you meet the payment deadlines. This solution is a cost-effective way to make big purchases without breaking the bank.
6. Minimum spend requirements
   
   While this benefit varies per merchant, BNPL is usually available for purchases that meet a certain amount. Before completing a transaction, ask the store about their minimum spend rules for easy terms 0% installment, so you're fully informed before committing.
   
   With RCBC Credit Cards' BNPL program, you get the power of immediate purchases combined with stress-free, budget-friendly repayments.

Buy Now, Pay Later by the Numbers

BNPL isn't just a passing trend—it's a response to how modern consumers prefer to shop. A 2024 survey found that 96% of Filipinos see credit as vital to achieving financial goals. Still, only 35% believe they have enough access to credit and lending products. Regardless, the BNPL option has grown in popularity, especially among Gen Zs.

The future of BNPL is bright, as consumers seek flexible options based on their needs. In fact, 67% say installments allow them to stick to a budget and not overspend, while 70% prefer to use BNPL offers from their banks.

If you own an RCBC Credit Card, you can take advantage of BNPL and opportunities to enjoy life's little luxuries without financial stress. Whether you're buying a new phone, booking a long-awaited trip, or making home upgrades, flexible installment terms allow you to shop confidently.

Why BNPL is the Smart Way to Shop

BNPL is changing the game in a world where financial flexibility matters more than ever. The ability to spread costs over time without interest makes purchases more manageable and stress-free.

You can enjoy an authentic BNPL experience with no catches with RCBC Credit Cards. Turn any single-receipt transaction—from appliances and clothes to hotel stays and travel—into installments without additional costs. You can also spread out payments for purchases without BNPL with our UNLI 0% option.

With flexible repayment alternatives of up to 36 months, we can help you shop smart and pay at your own pace.

Swipe smart with RCBC Credit Cards today and shop stress-free.