Revolut has announced the introduction of a “buy now, pay later” (BNPL) service for its credit card customers, enabling them to repay purchases in fixed instalments.
The feature allows Revolut cardholders to divide their repayments over three, six, nine, or 12 months, with interest rates set at 9.5 per cent (9.98 per cent APR).
It is available to both new and existing credit card users, positioning Revolut as a competitor in the increasingly popular BNPL market.
Revolut’s expansion into instalment-based payments comes as the company prepares to offer additional financial products, including mortgages, later this year.
The fintech has over three million customers in Ireland.
The BNPL sector has experienced a surge in popularity, driven by firms like Klarna, which serves 10 million customers worldwide. These services provide consumers with the convenience of spreading payments, often appealing to those seeking greater flexibility in managing their finances.
However, the rapid growth of BNPL schemes has prompted caution from regulators. Both the Central Bank of Ireland and the Competition and Consumer Protection Commission have highlighted potential risks, reminding consumers that such agreements constitute taking on credit. They urge users to be mindful of the terms and long-term implications when opting for BNPL arrangements.