Buy now, pay later

Buy now, pay later (BNPL) lets you shop online and pay later – in instalments or after 14–30 days.

The biggest providers:

• Klarna: market leader in Germany. Invoice, 3 instalments (interest-free), financing
• PayPal: "Pay later" (14 days) or instalments (3–24 instalments)
• Amazon: monthly billing for Prime customers
• Apple Pay Later: 4 instalments over 6 weeks

Costs:

• Invoice/30 days: usually free (if paid on time)
• 3 instalments: often interest-free (Klarna)
• Longer financing: 10–15% effective annual interest
• Dunning fees: €1.20–4.60 per reminder + default interest

The problem:

• Debt counselling services report: BNPL is one of the most common causes of debt among under-30s
• 25% of BNPL users were unable to pay at least one instalment on time (study)
• Losing track: 5 Klarna orders = 5 different payment dates
• Impulse purchases: BNPL increases the average basket by 30–50%

Schufa effects:

• Klarna: since 2024, reports late payments to Schufa
• Dunning proceedings: a negative Schufa entry is possible
• Can later prevent a loan or rental contract!

Recommendation:

• Only use BNPL if you have the money NOW (as a payment deferral, not as credit)
• Never order more than you could afford right away
• Keep track: max. 1 open BNPL payment at a time