6 Steps for Using Buy Now, Pay Later In-Store

Can You Use Buy Now, Pay Later In-Store?

These days, many stores let you pay with buy now, pay later plans. Usually, you'll need to download a BNPL service's app, enter your payment total and review your payment plan. Your BNPL service will then generate a one-time payment card, which you can add to your digital wallet. Then, it's as simple as tapping your phone at the payment terminal to check out.

How to Use Buy Now, Pay Later at Retail Stores

Here's a more detailed breakdown of how to use BNPL at retail stores. Keep in mind that the process can vary slightly depending on where you're shopping and which BNPL service you use.

1. Find Out if a Store Accepts BNPL

Lots of major retailers now accept BNPL payment in-store, including Walmart, Target and IKEA. But in-store BNPL payment isn't available everywhere. Confirm you can use BNPL where you're shopping by checking the store's website or searching "[store name] buy now, pay later" online.

2. Download the BNPL App

If you haven't already, download the app for the BNPL service you plan to use (after confirming that specific service is accepted in-store). You'll use this app to request a payment plan when checking out. Most apps are free to download to your mobile device.

3. Request a One-Time Virtual Card

With many BNPL providers, you'll request a one-time virtual card in the app to pay for your purchase in-store. This is similar to a prepaid card, but it's only good for one use.

Keep in mind that when you request a virtual card, you may have to enter the amount you want to spend, and some BNPL providers may set preapproved spending limits.

Before heading to the register, check with your provider for instructions on how to set up a virtual card so you aren't stuck trying to figure it out in the checkout line.

4. Use Your Digital Wallet to Pay

Once you receive a one-time virtual card, add it to your digital wallet, such as Apple Wallet or Google Wallet. After that, you can pay with your virtual card as you would with any other digital wallet payment—by pulling up the card and holding your phone near the store's contactless payment terminal.

5. Use a One-Time QR Code

Sometimes, a BNPL retail partner may offer a QR code or barcode for an easier, faster checkout. In this case, you'll generate a code in your app, and the cashier will scan it when you check out.

6. Pay Off Your Loan

After the in-store transaction is processed, your installment plan for the purchase will show up in your BNPL account. Avoid late payments by enrolling in autopay or putting due dates in your calendar. If you do miss payments, you could face late fees and possibly interest.

Pros and Cons of Using BNPL In-Store

Before downloading a BNPL app to shop in-store, weigh these pros and cons.

When to Use Buy Now, Pay Later

Like any financial tool, there's a time and place for BNPL.

BNPL services can be a good way to spread out payments for necessary larger purchases you don't want to pay for upfront. For example, say your dryer breaks and you'd prefer not to withdraw $1,000 from your bank account all at once. Using BNPL allows you to pay 25% of the purchase biweekly, which could be convenient if payments align with your paydays.

However, you can get into trouble if you overextend yourself with BNPL plans. Having several BNPL plans open simultaneously can affect your ability to keep up with your bills, and paying late can trigger fees. The consequences of not paying at all can also be steep: Unpaid balances could end up in collections and on your credit report, affecting your ability to qualify for credit or loans in the future.

Although BNPL plans are convenient in the right circumstances, alternative options have their perks. For example, when using credit cards responsibly, you can earn rewards on your purchases. The value of those points, miles or cash back could pay for trips or other merchandise. Just be sure to pay off your purchases when you receive your bill to avoid paying interest.

Frequently Asked Questions

The Bottom Line

Using buy now, pay later in physical stores is simple and fast. In theory, you could download a BNPL app while browsing store aisles and have it set up and ready to pay by the time you get to the checkout counter. However, you should weigh the pros and cons and consider other borrowing options before defaulting to BNPL.

If you use a credit card and pay off the balance each month to avoid interest, you can take advantage of rewards and other perks like purchase protection. Having good credit can help you qualify for credit cards with the best rewards. If you're looking for a new credit card, Experian can help match you to cards that fit your unique credit profile.