Buy Now, Pay Later (BNPL) is an attractive financing option. Unlike traditional credit cards, you can usually pay for your purchase on a predictable schedule without worrying about additional charges.
However, what about using the BNPL function and adding it to your credit card?
The new kind of product in the credit market, BNPL branded cards, does just that. If you’re a BNPL fan, this might look attractive. However, if you look at the details, it is rare that this type of card is something that regular credit cards do not offer. In fact, buying a BNPL card will allow you to miss out on flexibility.
Here are some things you need to know about this new card product and why it shouldn’t be seduced too quickly.
What BNPL Cards offer
A possible new trend started with Klarna credit cards* by popular BNPL provider Klarna. The card does not charge an annual fee and only requires a soft credit check to apply. This means you don’t have to worry about harsh inquiries drawing your credit score.
This card can be used in the US or overseas, where visas are accepted in-store and online. When purchasing with a Klarna card, you can choose from four plans to pay it back.
- Payment at age 4, interest free: This option allows you to spread the cost to four installments with 4% interest. Over the course of six weeks, you will pay 25% of your total amount and the remaining 25% every other week. This feature must be used and used by the Klarna app within 12 hours of purchase.
- Pay for 3-18 months or more: You can also pay for purchases of 3, 6, 12, or 18 months or longer. In this case, 28.99% APR applies.
- Moved next month: If you need more time to pay, you can move your purchase until next month, but again, you will need to pay interest.
- Pay in full: Or simply pay off your purchase completely.
The Klarna Card’s payment structure is unique, but it’s not just BNPL players in credit card space.
For example, the new PayPal credit cards are “coming soon” according to the company’s website. While PayPal has long offered direct BNPL options for purchasing via the platform, new credit cards have the BNPL feature provided by Intro APR. This card does not earn PayPal salary with four loans, but when checking out online with PayPal, you will not be able to earn six months of interest on purchases over $149. Additionally, if paid in full within six months, you will not be interested in eligible travel purchases posted to your account by January 31, 2026.
In either case, if your purchase repayment is finished and not finished within 6 months, please note that you are interested in the original amount, not just the remaining balance. The card’s APR is 30.39% (variable).
BNPL cards are compared to traditional credit cards
The lack of interest is certainly attractive. However, a suitable credit card can offer longer interest-free periods and provide flexibility for payments.
Please use your Klarna credit card. Unless you choose to pay with 4 or pay in full, you’re stuck with a high APR. Additionally, you need to manage each transaction individually and use it to determine what you want to do. If you use the card regularly, it may create quite a bit of work for you.
Additionally, PayPal credit cards advertise deferred profit offers. Such offers are mean, as it is easy to assume that after the intro period, which is actually billed in full, you will only pay interest on the remaining balance. Considering the regular APR of your card, interest can be expensive.
I contacted Klarna and Paypal, but there were no comments.
Compare these options with your regular 0% APR credit card. You can gain more than a year of interest in purchasing. And that would be a true 0% APR offer. This means that once it expires, you simply borrow interest in your remaining balances.
Plus, many of these traditional cards offer rewards. for example, Chase FreedomUnlimited® Earn 5% cashback on travel purchased through Chay Travelsm3% cashback on drugstore purchases and restaurant meals (including takeout and eligible delivery services), and 1.5% on all other purchases. The card does not charge an annual fee and will provide a 0% APR upon purchase for 15 months. a 18.99%-28.49% Variable The APR will start later.
If you are planning a large purchase and a profitless offer takes priority over rewards, consider a card like this Wells FargoReflect® Card . For 21 months after account creation, your Intro APR will be 0%. This means that you will have it for nearly two years without any interest charges when you purchase. After that, regular 17.24%, 23.74%, or 28.99% Variable APR It will be enabled.
With these cards, you are not bound by the strict payment schedule you get with payments in 4. This increases flexibility when cash flow fluctuates. In any month, if you are facing a financial set-off, you can remove the balance faster, reduce your normal payments, or make a bigger payment.
That said, no matter which card you choose, you should always plan to repay your balance within the specified period. While regular credit cards may have less interest than BNPL cards, credit cards are rarely cheaper.
The card may already have BNPL function
Credit card issuers have not ignored the rise in popularity of BNPL. Many popular cards now offer BNPL plan options.
These plans often offer several terminology options, allowing you to choose the best time frame. This gives you even more flexibility.
Some examples of such plans are:
- American Express is planning it You can create up to 10 plans for at least $100 purchases. Payments are automatically included in the minimum monthly payment. You will not be charged any interest, but there will be a fixed monthly fee.
- I’ll chase over time It can also be applied to eligible purchases over $100 (or at least $50 if you apply the feature through Amazon Checkout). You pay a fixed monthly fee, but there is no interest.
- City Flex Pay Available for eligible purchases of $75 or more. Again, you pay a square fee, but you will not be charged any interest. Monthly plan payments will be added on the minimum due date.
Other publishers may also offer unique variations of BNPL functionality. Make sure to check what the card offers. In the end, you will see that you do not need to apply for additional financial products.
Conclusion
It is too early to determine whether BNPL branded credit cards will be trending. For now, however, using a regular credit card will give you more flexibility in your payment options. Check what your wallet cards offer, or browse what your new credit card offers and find what you need.
Information about Klarna Credit Cards, PayPal Credit Cards, and PayPal Cashback MasterCard® is collected independently by Bankrate.com. Card details have not been reviewed or approved by the card issuer.
