What is Buy Now, Pay Later?

Buy Now, Pay Later (BNPL) is a way to split a purchase into smaller payments over time instead of paying the full amount up front.

You’ll usually see it as an option at checkout—online or in-store—where a BNPL provider pays the merchant right away, and you repay the provider in instalments (often bi-weekly or monthly), sometimes with fees or interest.

Used carefully, it can help smooth out bigger purchases. Used carelessly, it can lead to too many payments at once and missed due dates.

KOHO Pay Later

Instead of juggling lots of BNPL plans at different stores, KOHO Pay Later lets you spread the cost of eligible purchases you’ve already in the app.

With KOHO Pay Later you can:

• Select one or more $100+ purchases, up to $1000

• You can repay the cost of your past purchase over 3 months, 6 months, or 9 months

• No interest, just a small fee

• No credit check

How Buy Now, Pay Later Works

While every provider is a bit different, most BNPL setups look like this:

• You make a qualifying purchase (often over a certain dollar amount)

• At checkout, you choose “Pay in instalments” instead of paying in full

• The provider approves you (sometimes with a soft or hard credit check)

• You repay the purchase over a fixed schedule (e.g., 4 payments over 6 weeks, or several months)

• If you miss a payment, you may get hit with fees, interest, or collection activity

BNPL doesn’t feel like traditional debt, but it is still a form of borrowing—and it can affect your budget if you stack multiple plans at once.

When Buy Now, Pay Later Can Make Sense

BNPL can be reasonable when:

• It’s for a planned, necessary purchase (e.g., work laptop, essential furniture, travel you’ve budgeted for)

• You’ve looked at your budget and know you can comfortably handle the payments

• The terms are clear (no hidden interest rate surprises)

If your budget is tight, paying in instalments can sometimes be safer than putting everything on a high interest credit card and carrying a balance.

When to Be Careful

BNPL is a red flag if:

• You’re using it because you can’t afford the purchase at all

• You have multiple plans across different apps, and it’s hard to track what’s due when

• You’re leaning on it for everyday expenses (groceries, takeout, small impulse buys)

If it’s making your monthly cash flow more stressful instead of less, it’s time to pause and simplify.