Welcome to the digital age. If you’re still juggling paper money and coins, you’re missing out on the BNPL (buy now, pay later) App generation.
Retail and online shopping is experiencing a massive boom in contactless payments. The UK is a consistent contender in the top ten countries that take advantage of prolific spending through apps.
The UK is also a driver in app store downloads and experienced a 7% growth. Brits are taking advantage of these convenient methods and saving on the heavy interest consuming their credit cards.
COVID-19 catapulted the growth of online shopping and BNPL. Experts predict the BNPL market will reach over £27 billion by 2024. According to recent statistics, 37% of the British population are BNPL clients. Urban centers like London are already at 48% of cashless consumers.
The BNPL app market is beneficial for both parties in the consumer industry. Companies invest heavily in dedicated app technology to attract consumers.
If you’re curious about BNPL apps in the UK, keep reading.
List of the 7 Best Buy Now, Pay Later Apps in the UK
Ranked the most frequently used BNPL app in the UK, Klarna outpaces its competition by more than two to one. Owned by a Swedish bank, Klarna continues to expand into the European market with its innovative technology.
To provide UK residents with the best BNPL experience, Klarna invested in redesigning its SmartPhone app to transition its client through a seamless shopping experience. It provides clients with content tailored to their shopping habits and history.
The Klarna app has a vast network of BNPL clients in over 19 countries, including Australia and the USA.
Although PayPal once (2019) dominated the buy now pay later apps UK market, it appears to be suffering from the onslaught of app competition. At one time, PayPal’s most significant competition was institutional credit card lenders.
However, the development of BNPL apps is leaving PayPal fumbling for market share. PayPal lagged in developing its BNPL applications, and the competition took advantage of this window
The PayPal app currently allows its clients three interest-free payments or automatic repayments. Since partnering with Starling Bank, new technology advancements and opportunities are on the horizon.
As a forerunner in digital commerce, PayPal might recover its legacy well enough to remain a strong contender.
Laybuy is making considerable inroads in the BNPL app industry that even the popular Manchester United Football Club partnered with the upstart company.
Laybuy is a new entry in the BNPL scene with a distinct difference. Laybuy allows clients to spend beyond their credit limits. To navigate clients' debts by offering unique repayment options, Laybuy speaks to a different client base.
Laybuy has a strong client following in the UK, Australia, and New Zealand. The company’s unique approach allowing consumers to spread the cost of their purchase over a specific time makes them appealing. Secondly, it works with merchants to attract more consumers.
For consumers who want fast application approval, DivideBuy provides that service with no hidden fees. Merchants who work with DivideBuy often see greater basket purchases to their benefit.
DivideBuy clients have access to split their payments into equal portions, making the outstanding payment more palatable to their budget. Options range from two to twelve-month repayment plans through installments. Clients can also manage an online account and be free to issue additional payments toward their balance.
Hedging on its success, DivideBuy has close to $500 Million in funding and three investors.
The creators of Payl8r BNPL app didn’t just read the writing on the wall. They built an empire on it. Industry experts slated Payl8r to become a £1 billion fintech business within the next few years. Payl8r partnered with hundreds of online shops to service its clients with several payment options.
By offering instant credit checks at the time of purchase, Payl8r clients are a great option for students who lack a long credit history. Consumers report that the Payl8r is easy to use, making it a favorite for younger generations.
Conister Bank (Isle of Man) is funding the Manchester app company to ensure its growth as a leading credit provider to millennials. This £40 million institutional funding line allows Payl8r to expand its retail network and grow its base.
Clearpay is a BNPL app market leader with a solid foothold with many retailers. The Clearpay app and its international moniker, Afterpay, allow customers to make equal and interest-free payments on their purchases.
The innovative app rewards its clients when they pay on time. Clients can choose from a massive selection of brands and products in online venues or brick-and-mortar stores.
The app allows clients to pay in four interest-free payments over six weeks.
Every BNPL app is looking for its niche market, and Curve Flex has found its opportunity in a convoluted market. Curve Flex, an offshoot of Curve, offers consumers to option to divide their outstanding payments into attainable installments.
This is an excellent solution for clients looking to adjust their budget needs. Curve Flex allows clients to free up funds with one swipe by simply choosing any payment for their purchase list completed in the last 12 months.
Simply swiping, clients can split their monthly installments (into 3, 6, 9, or 11), and Curve Flex frees up the original amount. The first payment to Curve Flex commences after 30 days. It is an excellent opportunity to help people caught in a bind.
Next Steps in Choosing the Right BNPL Provider
BNPL is a viable solution for global clients, eCommerce, and retailers. A revamping of the old-fashioned banking institutions charging exorbitant credit card fees is long overdue. These outdated payment systems cripple the economy and consumers. Obillex is here to transition consumers into the new digital era by providing relevant information.
Of course, the top BNPL apps in the UK are constantly evolving, and new contenders battle for a lucrative lending market position.
However, it’s still prudent to read the fine print in each provider's terms and conditions segment to unearth the cheapest online payment systems.