The “Buy Now Pay Later” (BNPL) apps have become a prominent feature in the UK’s e-commerce landscape, offering consumers a convenient way to spread the cost of their purchases over time, often without the need for a credit check. These apps have seen a significant increase in usage, with recent data from the Financial Conduct Authority (FCA) indicating that 27% of UK adults used BNPL services in the six months prior to January 2023, up from 17% in the preceding 12 months as of May 2022
Klarna BNPL app
Klarna has positioned itself as a market leader in the BNPL space. Offering three primary payment options:-
- Pay in 30 days
- Pay in 3 interest-free instalments
- Financing plans with interest
Klarna appeals to a wide demographic of online shoppers, especially in the fashion and tech segments.
The Klarna app not only allows users to track orders and manage payments but also features tailored shopping recommendations, integrated retailer deals, and a budgeting tool to avoid overspending. Its clean user interface and strong brand recognition have made Klarna a go-to BNPL choice for ASOS, H&M, JD Sports, and even Samsung shoppers.
Klarna performs a soft credit check for most purchases and a hard check only if you choose the long-term financing option. As of 2025, Klarna is also expanding into banking-like services in parts of Europe, hinting at its ambition to become a full-service financial platform. For UK users, its breadth of retailers and ease of use make it a top-tier BNPL option but users should keep track of payment due dates to avoid falling behind or using it as a credit card substitute.
Clearpay BNPL app
Clearpay, the UK branch of global BNPL player Afterpay, focuses on millennials and Gen Z consumers who prefer short-term, interest-free credit options. It breaks purchases into four equal instalments, paid every two weeks. There are no interest fees as long as users pay on time, and no credit check is required, making it attractive to those with little or no credit history.
Clearpay is especially popular in the fashion, cosmetics, and wellness sectors, with partnerships across retailers like:-
- Boohoo
- Urban Outfitters
- Cult Beauty
The app integrates directly into checkout pages, making it seamless to split payments without leaving the retailer’s site.
From a financial standpoint, Clearpay’s predictable structure encourages disciplined repayment. However, it charges late fees if payments are missed, and repeated delinquencies can lead to suspended accounts. The app includes spending limits that adapt based on user behaviour, encouraging responsible usage.
Clearpay’s no-interest, no-surprises approach has made it a staple for young shoppers seeking budget-friendly payment alternatives without the baggage of traditional credit cards.
Laybuy BNPL app
Laybuy offers consumers a six-week interest-free repayment structure, with payments automatically deducted weekly. It’s aimed at shoppers who want to spread out purchases without incurring interest or committing to long-term debt.
Unlike Klarna or Clearpay, Laybuy performs a soft credit check upon registration and assigns a spending limit based on financial data. This process helps reduce risk for both the consumer and the platform, and users are clearly shown their repayment obligations up front.
Laybuy is particularly popular among fashion and lifestyle shoppers, partnering with UK brands such as Footasylum, Bluebella, and MyProtein. Its payment calendar and automatic reminders are effective features to help users avoid falling behind. Laybuy also allows one free payment reschedule per purchase, a user-friendly feature that supports flexibility without fees.
For consumers trying to manage tighter budgets – such as students or first-jobbers – Laybuy offers a compelling way to afford higher-ticket purchases without overstretching monthly finances. Its transparency, app usability, and growing retailer network make it an underrated gem in the BNPL space.
Openpay BNPL app
Openpay takes a slightly different approach in the BNPL space. Rather than focusing solely on fast fashion or consumer tech, Openpay has built a reputation around high-value, service-based sectors like healthcare, dentistry, automotive, and education.
The platform offers longer repayment terms, often up to 6 months interest-free, giving customers greater flexibility when spreading the cost of expensive but essential services. For example, Openpay is used by dentists and vets across the UK, helping families manage large and unexpected expenses without resorting to loans or credit cards.
Unlike Clearpay or Laybuy, Openpay’s application process may involve more detailed checks depending on the length and size of the payment plan. However, it still performs soft credit checks for most users, preserving accessibility. It’s also geared toward responsible spending, with built-in affordability assessments and strict limits to prevent overextension.
For consumers with larger one-off expenses, like new tyres, physiotherapy, or private healthcare, Openpay is one of the most practical and customer-friendly BNPL options available in the UK today.
Popular BNPL products
Research from C+R Research shows that clothing and electronics remain the most popular BNPL categories, with a rising trend toward home improvement and travel. These categories align closely with where the most partnerships and marketing efforts are concentrated.
While BNPL offers convenience and flexibility, it also presents risks. More than 50% of users surveyed reported regret over at least one BNPL purchase, and a similar proportion admitted to missing or delaying payments. This shows that education and awareness are critical when promoting BNPL services.
BNPL Regulations
The UK’s Financial Conduct Authority (FCA) has been increasingly active in reviewing and regulating BNPL providers. In 2023 and 2024, they focused on clarifying contract terms, ensuring fairness in late fee structures, and promoting transparency around how BNPL services impact credit.
BNPL firms that operate without sufficient consumer disclosures or those that target vulnerable demographics are facing tighter scrutiny. However, providers like Klarna, Laybuy, and Clearpay have been praised for improving their communications, introducing affordability checks, and supporting financial education.
Conclusion
BNPL apps offer a powerful tool for consumers who want more flexibility, convenience, and control over their spending. As the market matures, we’re seeing exciting use cases beyond just fashion and tech, like energy efficiency and healthcare.
However, the onus is on users to understand the repayment terms, be aware of late fees, and use BNPL as a budgeting tool, not a credit crutch. With providers improving transparency and regulators increasing oversight, BNPL can continue to evolve as a responsible financial tool for modern living.
