Buy Now Pay Later – A new era in retail shopping

by Starry

May 05 2022

There has been a significant increase in buy now pay later companies lately, which can be attributed to the growing success of this business model among consumers. This article will discuss how the buy now pay later companies work.

What is buy now pay later?

Buy now pay later (BNPL) companies offer short-term financing to consumers, allowing them to make purchases immediately and pay for them in installments at a predetermined date in the future. This arrangement is also referred to as “point of sale installment loans” and is usually interest-free.

The buy now, pay later business model is becoming increasingly popular in online and offline shopping.

How does buy now pay later work?

While every buy now pay later program isn’t created equal, there are certain features that remain the same.

  • The customer makes a purchase at a partner merchant and selects “buy now, pay later” at checkout.
  • Once approved, d, the payment is split into multiple installments, and the customer makes an upfront payment of the first installment.
  • The remaining amount is then paid over a predetermined period in the form of interest-free payments.
  • The payments will be automatically deducted from the customer’s debit card, bank account, or credit card.

If you are wondering how a BNPL is different from purchasing via a credit card, there is a clear difference between both repayment methods.

When you pay with your credit card for a purchase, you are required to pay a minimum amount due on the card every month. Interest keeps accumulating on the remaining amount until you pay it in full. However, you can carry the remaining balance indefinitely when you buy with a credit card.

In contrast, BNPL doesn’t involve service fees or interest charges. They have a fixed repayment schedule that you have to follow after the purchase. The customer is informed upfront of the amount they have to pay for each installment and when it will become due.

The buy now pay later business model suits the needs of modern consumers. Here are the benefits you can expect when using a buy now pay later app.

  • Fast setup and approval
  • Convenient and budget-friendly way of purchasing things.
  • It doesn’t require a high credit score to qualify.
  • Most BNPL have zero interest or lower interest than regular credit cards.
Buy Now Pay Later

Buy now pay later in Singapore

Why are buy now pay later companies on the rise in Singapore?

BNPL solutions are currently trending in Singapore markets. According to the 2021 BNPL Survey, buy now pay later payments are expected to grow by 52.6%, reaching up to US$773.9 million. It is also expected that BNPL payment adoption will grow steadily with a CAGR of 25.5% for the period 2022 to 2028.

This shows great potential for the medium to the long-term growth of the BNPL industry. It is also the reason why more and more companies have extended their offerings to interest-free installment payment options for online shoppers.

Another factor that has accelerated e-commerce in Singapore is the global pandemic. As people were limited to their homes for extended periods, they turned to e-commerce platforms to fulfill their shopping needs. A trend that began during the pandemic has continued to grow even after the effects have subsided.

Since consumers have become accustomed to shopping from the convenience of their homes, they prefer e-commerce platforms over in-store shopping in most cases. The BNPL industry has grown remarkably with the rise of online shopping platforms, and several companies have adopted this model to facilitate and retain their customers.

Taking notice of the strong growth of the BNPL market across Asia, major banks are entering into strategic alliances with BNPL companies to benefit from the overall trend. In October 2021, Standard Chartered Bank announced its 10-year strategic alliance with the BNPL platform, Atome. The bank is among the first major banks to partner with a BNPL company in Singapore.

Top BNPL companies in Singapore

Hence, if you are based in Singapore and excited to try a BNPL model for your next shopping spree, there are quite a few companies that you can choose from.

Have a look at the top buy now pay later Singapore players. They are Atome, hoolah, OctiFi, and Rely. Other than the four companies mentioned above, there are newer additions to this list, including Grab buy now pay later, and pace buy now pay later.


Atome buy now pay later is one of the most popular payment solutions in Singapore. The service was launched in 2019, and it currently has over 10,000 partnered merchants, both online and offline. It has successfully expanded into 8 markets, including Greater China, Indonesia, Malaysia, Hong Kong, and Vietnam.

Atome’s extensive merchant portfolio allows it to offer premium products and services to its users across homeware, lifestyle, fashion, beauty, and more. Sephora (more about Sephora brand story), Zara (want ZARA promo code? Click here for details!), IUIGA, Marks & Spencer, and iStudio (want iStudio installment plan for Apple products? Read on!) are among their retail partners.

With Atome, users can split their bill into three equal payments that can be paid over time. Their services are free from any hidden charges or annual fees with zero interest.

Consumers enjoy the Atome app (get the app) because it is easy to understand and use. In addition, Atome’s wide network is proof of its success and security, making it an easy choice for users.

How to pay with Atome?

  • Download Atome’s app on your smartphone and become a registered user. The registration process is very easy and only takes a few minutes.
  • Scan the QR code from the Atome app at checkout for in-store purchases. Pay the first part of the bill and defer the rest of the payment.
  • For online purchases, select Atome as your partner for payment at checkout.
  • Enter your user details and continue.
  • Pay one-third of your bill immediately, and the remaining payments can be made later.
buy now pay later Singapore companies

Final word

Singapore’s buy now pay later market is growing rapidly with the rise in e-commerce. Due to this reason, FinTech companies are joining with BNPL companies to support merchant partners. Flexible payment solutions among consumers have also increased the demand for BNPL payment options among in-store and online retailers.

While it is exciting to hop on this trending bandwagon, it is important to choose a BNPL that is secure and well-established. Atome has a strong offline and online presence in the retail space, making it an option consumers can trust. So, if you are thinking about using a buy now pay later app for your shopping needs, download the Atome app and start buying the smart way.

Main keywords of the article:

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Apaylater Financials Pte. Ltd.

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