{"id":96482,"date":"2026-04-17T11:34:43","date_gmt":"2026-04-17T15:34:43","guid":{"rendered":""},"modified":"2026-04-22T11:34:49","modified_gmt":"2026-04-22T15:34:49","slug":"buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it","status":"publish","type":"rbc_my_money_matter","link":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/","title":{"rendered":"Buy Now, Pay Later: Your Guide to How it Works, When to Use It and When to Skip It"},"content":{"rendered":"\n<section class=\"wp-block-rbc-section-block  pos-rel\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner\" style=\"border-radius:0x\"><\/div>\n<\/section>\n\n\n\n<div class=\"wp-block-rbc-rbc-block drop-shadow pos-rel top-line-blue block-wpr\">\n<div class=\"wp-block-rbc-rbc-block-inner-block block-inner\">\n<h4 class=\"wp-block-heading\" id=\"h-tldr\">TLDR<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Buy Now, Pay Later (BNPL) makes it easier to break purchases into a few smaller payments.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Some BNPL options don\u2019t charge interest, but missed payments could lead to fees and affect your credit score.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Be sure to build BNPL payments into your budget so that it fits with your money goals. We have tips to help you stay on track.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>BNPL can be a great option, but other options may be a better fit in some cases.<\/p>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-buy-now-pay-later-bnpl\">What is Buy Now, Pay Later (BNPL)?<\/h2>\n\n\n\n<p>Buy Now, Pay Later is growing steadily in Canada: spending through BNPL payments was <a href=\"https:\/\/www.globenewswire.com\/news-release\/2025\/02\/17\/3027136\/0\/en\/Canada-Buy-Now-Pay-Later-Business-Report-2025-2030-Afterpay-Sezzle-Klarna-Affirm-and-PayBright-are-Actively-Shaping-the-Competitive-Landscape-of-the-Burgeoning-7-5-Billion-Industry.html\">up 12% in 2025<\/a> compared to the year before, and by 2030, it\u2019s expected to double, reaching over US $11 billion.<\/p>\n\n\n\n<p>But first things first: what is BNPL? Short for Buy Now, Pay Later, BNPL has gone from a niche payment option to one of the most common ways Gen Z and Millennials pay for\u2026 well, almost anything. Clothes, concert tickets, tech \u2013 you name it. The appeal is simple: fast approvals, small payments and (generally) no interest if you stick to the plan.<\/p>\n\n\n\n<p>BNPL lets you buy something today and pay for it in installments, instead of all at once. The most common setup is \u201cPay in 4\u201d \u2013 four equal payments spread out over a few weeks. Some providers also offer longer plans, sometimes with interest.<br><\/p>\n\n\n\n<p>While BNPL can be a convenient option, it\u2019s worth knowing how these plans actually work and how they compare to other borrowing options like credit cards and personal loans.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-popular-bnpl-providers\">Popular BNPL Providers<\/h3>\n\n\n\n<p>You may have seen some of these names show up at checkout. Here are some of the most common BNPL providers in Canada.<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Affirm<\/strong>: A major player in the U.S. and Canada.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Klarna<\/strong>: Offers different payment timelines and a well-known app.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Afterpay<\/strong>: Used globally and popular for fashion and lifestyle purchases.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>PayBright<\/strong> (by Affirm): One of Canada\u2019s earlier BNPL providers.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Sezzle<\/strong>: Requires a 25% down payment on purchases, but in most cases offers no-interest loans.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>PayPal Pay in 4<\/strong>: Easy if you already use PayPal.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>PayPlan by RBC<\/strong>: The only BNPL solution backed by a Canadian bank.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-bnpl-works-in-canada\">How BNPL works in Canada<\/h3>\n\n\n\n<p>A big factor behind BNPL\u2019s popularity is that it\u2019s really easy to use. A typical BNPL experience looks like this:<\/p>\n\n\n\n<ol class=\"wp-block-rbc-list\">\n<li class=\"wp-block-rbc-list-item\">\n<p>At checkout:<\/p>\n\n\n\n<p>You spot the BNPL option and choose it.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Quick application<\/p>\n\n\n\n<p>Share a few details and set up an account. Depending on the provider, there may be a soft or hard credit check, or none at all.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Lock it in<\/p>\n\n\n\n<p>Once approved, confirm the plan, see your payment dates and finish the purchase.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Make payments<\/p>\n\n\n\n<p>Use the app or turn on automatic payments<\/p>\n<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-benefits-of-bnpl\">The Benefits of BNPL<\/h3>\n\n\n\n<p>BNPL has become a mainstream payment option at checkout over the last few years, so what\u2019s driving the hype?<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-smooth-online-checkout\">Smooth online checkout<\/h4>\n\n\n\n<p>Because BNPL is built right into the online checkout experience, using it feels as easy as paying in full. You simply select the BNPL option when it\u2019s time to pay, choose your payment plan, enter a few details and voil\u00e0, you\u2019re all set with your new purchase.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-the-draw-of-interest-free-payments\">The draw of interest-free payments<\/h4>\n\n\n\n<p>Pay in 4 plans are usually interest-free, as long as payments are made on time (longer terms typically come with interest).<\/p>\n\n\n\n<p>But it\u2019s critical to stick with the plan \u2013 if you miss a payment or pay late, you may get charged interest and\/or fees.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-the-appeal-for-gen-z\">The appeal for Gen Z<\/h4>\n\n\n\n<p>Gen Z shoppers make up <a href=\"https:\/\/thewalrus.ca\/how-buy-now-pay-later-seduced-a-generation-and-trapped-it-in-debt\/\">72% of BNPL in Canada<\/a>. Here\u2019s why it\u2019s such an attractive payment option:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Fits into tight budgets<\/strong>: Because BNPL breaks purchases into smaller payments, it helps manage cash flow.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Opens credit to younger consumers<\/strong>: Approvals are quick, even if you haven\u2019t built up much of a credit history yet.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Clear payment schedules<\/strong>: You know exactly how much you need to pay and when.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>And honestly?<\/strong> A lot of the things Gen Z spends on \u2013 festival tickets, tech and fashion \u2013 aren\u2019t cheap. Case in point: At Coachella, about 60% of general admission attendees <a href=\"https:\/\/www.billboard.com\/pro\/coachella-payment-plans-high-ticket-prices-music-festivals\/\">used BNPL to pay<\/a> for passes.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-to-consider-before-using-bnpl-plans\">What to consider before using BNPL plans<\/h3>\n\n\n\n<p>BNPL can be super convenient, but it could also cause money stress if you\u2019re not careful. It\u2019s best to treat it like any other debt and plan for it in your budget. &nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-late-fees-and-nsf-charges\">Late fees and NSF charges<\/h4>\n\n\n\n<p>BNPL might feel fee-free, but missing a payment can get pricey <a>fast<\/a> with some providers. And if an automatic withdrawal hits when your balance is low, you could also get charged Not Sufficient Fund (NSF) fees. Some plans may add interest over time, so keep an eye on the fine print.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-stacking-multiple-bnpl-plans\">Stacking multiple BNPL plans<\/h4>\n\n\n\n<p>One BNPL plan? Manageable. A few at once? Suddenly you\u2019re juggling due dates and dealing with \u201cphantom debt\u201d you forgot you owed. Keep track of every plan and double-check your budget before adding another.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-impact-on-your-monthly-budget\">Impact on your monthly budget<\/h4>\n\n\n\n<p>Breaking a $250 item into small payments makes it feel affordable\u2026 but it\u2019s not always the case, especially given your other expenses and maybe some other BNPL plans. One of the biggest risks of BNPL is how it can lead to impulse purchases, because expensive items suddenly feel cheaper. Something to think about: If your living costs are unexpectedly higher one month, will you still be able to make your BNPL payments?<\/p>\n\n\n\n<p><strong>Building a budget is one of the best ways to get a handle on your money. Whether you use paper, a spreadsheet or an app such as <\/strong><a href=\"https:\/\/www.rbcroyalbank.com\/mobile\/feature\/nomi\/budgets\/\"><strong>RBC\u2019s NOMI<\/strong><\/a><strong>, having a system makes it easier to stay on track.&nbsp;<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-fewer-rules-and-safety-nets\">Fewer rules (and safety nets)<\/h4>\n\n\n\n<p>BNPL has fewer protections than credit cards. Approvals are easier, but that also means less support if you overspend or if your order gets lost or damaged. Refunds and disputes can be trickier without credit-card-style safeguards.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-returns-can-be-complicated\">Returns can be complicated<\/h4>\n\n\n\n<p>If you return something you bought using BNPL, you may still be on the hook for payments until the retailer approves the return and refunds the BNPL provider. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-does-bnpl-affect-your-credit-score\">Does BNPL affect your credit score?<\/h3>\n\n\n\n<p>While the early days of BNPL didn\u2019t have any impact on credit scores, more and more providers are introducing credit checks. Here\u2019s a quick lowdown:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Soft checks don\u2019t affect your credit score<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Hard checks, usually for bigger purchases, can cause a small temporary drop in your score<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Missed payments are where the biggest impact is. If you\u2019re more than 30 days late, the payment might get reported as overdue. If you\u2019re very late, the debt might go to collections.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Reporting varies by provider. Some report only late payments, some report full loan histories and some don\u2019t report at all.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Even if your BNPL activity isn\u2019t appearing now, that could change. As rules shift, bigger BNPL plans are starting to look more like regular debt on your credit report.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>Worried about the impact to your credit score? Here\u2019s what you can do:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Check your credit report<\/strong>: Take a look at your Equifax or TransUnion report to see whether any BNPL accounts are listed. This is the best way to know how your activity is being reported.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Read the fine print<\/strong>: Before you choose a BNPL plan, scan the provider\u2019s credit reporting policy.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-bnpl-vs-credit-cards-and-personal-loans\">BNPL vs credit cards and personal loans<\/h2>\n\n\n\n<p>BNPL isn\u2019t the only way to pay for something over time. Some options are better depending on what you\u2019re buying and how quickly you can pay it off.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-bnpl-makes-sense\">When BNPL makes sense<\/h3>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>You\u2019re buying something small or mid-priced<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You can confidently pay it off within the timeline<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You want fixed payments and no interest<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You don\u2019t have or don\u2019t want to use a credit card<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-a-credit-card-may-be-better\">When a credit card may be better<\/h3>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>You want flexibility in how much you pay each month<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You collect rewards or cash back<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You\u2019re making a bigger purchase that may need insurance or extended warranty coverage<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You might need to return the item<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You can pay off the balance by the due date<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-a-personal-loan-might-be-the-best-option\">When a personal loan might be the best option<\/h3>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>You\u2019re financing something expensive over a longer period<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You want one predictable payment each month<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You\u2019re consolidating several BNPL plans or other debts<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-comparing-costs-and-flexibility\">Comparing costs and flexibility<\/h3>\n\n\n\n<div class=\"wp-block-group has-text-sm-font-size is-vertical is-layout-flex wp-container-core-group-is-layout-8cf370e7 wp-block-group-is-layout-flex\">\n<table class=\"table-stack wp-block-rbc-stackable-table-block is-style-table-striped col-stack\"><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>BNPL<\/strong><\/td><td><strong>Credit Cards<\/strong><\/td><td><strong>Personal Loans<\/strong><\/td><\/tr><tr><td>Typical Cost<\/td><td>&#8211; $0 if paid on time<br>&#8211; Late fees apply<\/td><td>&#8211; No interest if you pay in full by the due date<br>&#8211; Interest is charged if you don\u2019t<\/td><td>&#8211; Interest starts right away<br>&#8211; Usually lower than most credit cards<\/td><\/tr><tr><td>Payment Schedule<\/td><td>&#8211; Fixed schedule<br>&#8211; Limited flexibility<\/td><td>&#8211; Very flexible repayment<br>&#8211; Minimum only required<\/td><td>&#8211; Fixed schedule<br>&#8211; Limited flexibility<\/td><\/tr><tr><td>Rewards\/ Cash Back<\/td><td>Rare<\/td><td>Available depending on card program<\/td><td>Rare<\/td><\/tr><tr><td>Best For<\/td><td>Short-term purchases<\/td><td>&#8211; Ongoing spending<br>&#8211; Big purchases<br>&#8211; When you want insurance coverage<\/td><td>&#8211; Long-term expenses<br>&#8211; Big-ticket items<\/td><\/tr><\/tbody><\/table>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>What borrowing solution is right for you? Get the <a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/lending-101-the-facts-about-lending-options\/\">facts about your lending options<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-use-bnpl-safely-and-responsibly\">How to use BNPL safely and responsibly<\/h2>\n\n\n\n<p>Using BNPL wisely comes down to staying organized and spending intentionally. Here\u2019s how to keep it working for you, not against you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-set-payment-reminders\">Set payment reminders<\/h3>\n\n\n\n<p>Even with automatic withdrawals, knowing when payments hit helps you avoid surprises.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-track-installments-in-your-budget\">Track installments in your budget<\/h3>\n\n\n\n<p>Even if the installment amounts are small, make sure they\u2019re in your budget. They can add up without you realizing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-avoid-using-bnpl-for-essentials\">Avoid using BNPL for essentials<\/h3>\n\n\n\n<p>If you have to use BNPL for your necessities, like groceries or Friday night takeout, &nbsp;it\u2019s a sign your budget is already stretched too thin. Reserve it for short-term purchases that will help you manage your cash flow.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-keep-a-small-buffer\">Keep a small buffer<\/h3>\n\n\n\n<p>Leave extra money in your everyday banking account in case a payment hits earlier than expected.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-to-do-if-you-re-struggling-with-bnpl-debt\">What to do if you\u2019re struggling with BNPL debt<\/h2>\n\n\n\n<p>If your BNPL payments are starting to feel overwhelming, you\u2019re not alone. Many people find themselves in the same spot. The important thing is to recognize it early and take a few steps to get back on track.<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Don\u2019t ignore the problem. Overdue payments won\u2019t disappear<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Reach out to the providers to see if they can provide extensions or modified plans<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Create a strict budget to ensure your debts are covered each month<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Pause all new BNPL purchases<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Look into a low-interest personal loan to consolidate multiple BNPL debts into one payment<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs\">FAQs<\/h2>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-accordion accordion\" id=\"&quot;accordionSet1\">\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-titlee4002064\" class=\"collapse-toggle collapsed\" data-target=\"#accordione4002064\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-96482-e4002064\" aria-controls=\"accordione4002064\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"What is Buy Now, Pay Later, and how does it work?\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>What is Buy Now, Pay Later, and how does it work?<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordione4002064\" role=\"region\" aria-labelledby=\"accordion-titlee4002064\"><div class=\"collapse-inner\">\n<p>BNPL splits your purchases into a few smaller payments instead of one big one. Some plans are interest-free, and approval is often quick.<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-title70bfd004\" class=\"collapse-toggle collapsed\" data-target=\"#accordion70bfd004\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-96482-70bfd004\" aria-controls=\"accordion70bfd004\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"Is Buy Now, Pay Later safe?\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>Is Buy Now, Pay Later safe?<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordion70bfd004\" role=\"region\" aria-labelledby=\"accordion-title70bfd004\"><div class=\"collapse-inner\">\n<p>Yes, if you make your payments on time. The risks come from late fees, juggling multiple plans at once, or spending more than you planned.<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-titleebce5160\" class=\"collapse-toggle collapsed\" data-target=\"#accordionebce5160\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-96482-ebce5160\" aria-controls=\"accordionebce5160\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"Does BNPL affect your credit score in Canada?\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>Does BNPL affect your credit score in Canada?<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordionebce5160\" role=\"region\" aria-labelledby=\"accordion-titleebce5160\"><div class=\"collapse-inner\">\n<p>It can. Most soft checks won\u2019t affect your score, but missed payments or certain types of BNPL loans can show up on your credit report.<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-title6d3c6616\" class=\"collapse-toggle collapsed\" data-target=\"#accordion6d3c6616\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-96482-6d3c6616\" aria-controls=\"accordion6d3c6616\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"What happens if you miss a BNPL payment?\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>What happens if you miss a BNPL payment?<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordion6d3c6616\" role=\"region\" aria-labelledby=\"accordion-title6d3c6616\"><div class=\"collapse-inner\">\n<p>You may get hit with fees, interest or both. If the payment is seriously late, it could be reported to credit bureaus or sent to collections.<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-titleb9cca079\" class=\"collapse-toggle collapsed\" data-target=\"#accordionb9cca079\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-96482-b9cca079\" aria-controls=\"accordionb9cca079\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"Is BNPL better than a credit card?\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>Is BNPL better than a credit card?<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordionb9cca079\" role=\"region\" aria-labelledby=\"accordion-titleb9cca079\"><div class=\"collapse-inner\">\n<p>It depends. BNPL is great for short-term, planned purchases. Credit cards are better for flexibility, rewards and big-ticket items that need insurance.<\/p>\n<\/div><\/div><\/div><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-rbc-rbc-default-collapsible\"><p><button class=\"collapse-toggle collapsed\" data-target=\"#collapse834a1009\" data-toggle=\"collapse\" aria-expanded=\"false\" aria-controls=\"collapse834a1009\" data-dig-id=\"LP-57738-834a1009\" data-dig-category=\"LP\" data-dig-action=\"accordion closed\" action-closed=\"accordion closed\" action-opened=\"accordion open\" data-dig-label=\"Things our lawyers want you to know\"><span>Things our lawyers want you to know<\/span><span>Things our lawyers want you to know<\/span><\/button><\/p><div class=\"collapse-content collapse\" id=\"collapse834a1009\">\n<div class=\"wp-block-rbc-collapsible-inner-block collapse-inner\">\n<p>This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.<\/p>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Buy Now, Pay Later (BNPL) is a popular payment option if you\u2019re looking to spread out the cost of your purchases. Learn how it works, the risks and other payment options. <\/p>\n","protected":false},"author":112,"featured_media":96484,"parent":57317,"menu_order":0,"template":"wp-custom-template-mmm-sticky-nav","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"tags":[510,520],"rbc_content_type":[31],"rbc_audience":[61],"rbc_lob_group":[506],"rbc_difficulty_level":[33],"rbc_mmm_category":[318,367,319,304,370],"class_list":["post-96482","rbc_my_money_matter","type-rbc_my_money_matter","status-publish","has-post-thumbnail","hentry","tag-credit-and-debt","tag-managing-money","rbc_content_type-article","rbc_audience-youth","rbc_lob_group-ways-to-bank","rbc_difficulty_level-beginner","rbc_mmm_category-banking-basics","rbc_mmm_category-budgeting","rbc_mmm_category-credit-and-borrowing","rbc_mmm_category-money-academy","rbc_mmm_category-understanding-loans"],"acf":{"contently_publication_id":"","custom_author":"Diane Amato","rbc_video_header":"https:\/\/youtu.be\/LeOxJ3g7m-A","rbc_media_duration":"","rbc_video_keywords":"","rbc_video_description":"","rbc_video_upload_date":"","rbc_toc_for_mmm_tag":"h2","rbc_toc_for_mmm_limit":6,"rbc_toc_for_mmm":[{"title":"What is Buy Now, Pay Later (BNPL)?","url":"#h-what-is-buy-now-pay-later-bnpl"},{"title":"BNPL vs credit cards and personal loans","url":"#h-bnpl-vs-credit-cards-and-personal-loans"},{"title":"How to use BNPL safely and responsibly","url":"#h-how-to-use-bnpl-safely-and-responsibly"},{"title":"What to do if you\u2019re struggling with BNPL debt","url":"#h-what-to-do-if-you-re-struggling-with-bnpl-debt"}],"rbc_toc_for_mmm_action":"Generate Table Of Contents"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<meta name=\"description\" content=\"Buy Now, Pay Later (BNPL) is a popular payment option if you\u2019re looking to spread out the cost of your purchases. Learn how it works, the risks and other payment options.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:description\" content=\"Buy Now, Pay Later (BNPL) is a popular payment option if you\u2019re looking to spread out the cost of your purchases. Learn how it works, the risks and other payment options.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/\" \/>\n<meta property=\"og:site_name\" content=\"RBC Royal Bank\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-22T15:34:49+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/01\/shutterstock_2068070435.jpg?quality=80\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/\"},\"author\":{\"name\":\"hardikthakkar\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/#\\\/schema\\\/person\\\/e5c3534eb97bbe4a5f4b907c550dd589\"},\"headline\":\"Buy Now, Pay Later: Your Guide to How it Works, When to Use It and When to Skip It\",\"datePublished\":\"2026-04-17T15:34:43+00:00\",\"dateModified\":\"2026-04-22T15:34:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/\"},\"wordCount\":1913,\"image\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2026\\\/01\\\/shutterstock_2068070435.jpg?quality=80\",\"keywords\":[\"Credit and Debt\",\"Managing Money\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/\",\"url\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/\",\"name\":\"Buy Now, Pay Later: Your Guide to How it Works, When to Use It and When to Skip It - My Money Matters\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2026\\\/01\\\/shutterstock_2068070435.jpg?quality=80\",\"datePublished\":\"2026-04-17T15:34:43+00:00\",\"dateModified\":\"2026-04-22T15:34:49+00:00\",\"description\":\"Buy Now, Pay Later (BNPL) is a popular payment option if you\u2019re looking to spread out the cost of your purchases. Learn how it works, the risks and other payment options.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2026\\\/01\\\/shutterstock_2068070435.jpg?quality=80\",\"contentUrl\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2026\\\/01\\\/shutterstock_2068070435.jpg?quality=80\",\"width\":6228,\"height\":4003,\"caption\":\"Young woman sitting on a couch with a credit card in one hand and a smartphone in the other, reviewing a Buy Now Pay Later payment option for a purchase.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"My Money Matters\",\"item\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Money Academy\",\"item\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Credit and Borrowing\",\"item\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Understanding Loans\",\"item\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/\"},{\"@type\":\"ListItem\",\"position\":5,\"name\":\"Buy Now, Pay Later: Your Guide to How it Works, When to Use It and When to Skip It\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/#website\",\"url\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/\",\"name\":\"RBC Royal Bank\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/#\\\/schema\\\/person\\\/e5c3534eb97bbe4a5f4b907c550dd589\",\"name\":\"hardikthakkar\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/087e4b19d27d12bd3a6771d9ef5f1c8339f6db2c06747baff8c47adba03a7364?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/087e4b19d27d12bd3a6771d9ef5f1c8339f6db2c06747baff8c47adba03a7364?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/087e4b19d27d12bd3a6771d9ef5f1c8339f6db2c06747baff8c47adba03a7364?s=96&d=mm&r=g\",\"caption\":\"hardikthakkar\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"description":"Buy Now, Pay Later (BNPL) is a popular payment option if you\u2019re looking to spread out the cost of your purchases. Learn how it works, the risks and other payment options.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/","og_locale":"en_US","og_type":"article","og_description":"Buy Now, Pay Later (BNPL) is a popular payment option if you\u2019re looking to spread out the cost of your purchases. Learn how it works, the risks and other payment options.","og_url":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/","og_site_name":"RBC Royal Bank","article_modified_time":"2026-04-22T15:34:49+00:00","twitter_card":"summary_large_image","twitter_image":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/01\/shutterstock_2068070435.jpg?quality=80","twitter_misc":{"Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/#article","isPartOf":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/"},"author":{"name":"hardikthakkar","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/#\/schema\/person\/e5c3534eb97bbe4a5f4b907c550dd589"},"headline":"Buy Now, Pay Later: Your Guide to How it Works, When to Use It and When to Skip It","datePublished":"2026-04-17T15:34:43+00:00","dateModified":"2026-04-22T15:34:49+00:00","mainEntityOfPage":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/"},"wordCount":1913,"image":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/#primaryimage"},"thumbnailUrl":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/01\/shutterstock_2068070435.jpg?quality=80","keywords":["Credit and Debt","Managing Money"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/","url":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/","name":"Buy Now, Pay Later: Your Guide to How it Works, When to Use It and When to Skip It - My Money Matters","isPartOf":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/#primaryimage"},"image":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/#primaryimage"},"thumbnailUrl":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/01\/shutterstock_2068070435.jpg?quality=80","datePublished":"2026-04-17T15:34:43+00:00","dateModified":"2026-04-22T15:34:49+00:00","description":"Buy Now, Pay Later (BNPL) is a popular payment option if you\u2019re looking to spread out the cost of your purchases. Learn how it works, the risks and other payment options.","breadcrumb":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/#primaryimage","url":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/01\/shutterstock_2068070435.jpg?quality=80","contentUrl":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/01\/shutterstock_2068070435.jpg?quality=80","width":6228,"height":4003,"caption":"Young woman sitting on a couch with a credit card in one hand and a smartphone in the other, reviewing a Buy Now Pay Later payment option for a purchase."},{"@type":"BreadcrumbList","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"My Money Matters","item":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/"},{"@type":"ListItem","position":2,"name":"Money Academy","item":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/"},{"@type":"ListItem","position":3,"name":"Credit and Borrowing","item":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/"},{"@type":"ListItem","position":4,"name":"Understanding Loans","item":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/"},{"@type":"ListItem","position":5,"name":"Buy Now, Pay Later: Your Guide to How it Works, When to Use It and When to Skip It"}]},{"@type":"WebSite","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/#website","url":"https:\/\/www.rbcroyalbank.com\/en-ca\/","name":"RBC Royal Bank","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.rbcroyalbank.com\/en-ca\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/#\/schema\/person\/e5c3534eb97bbe4a5f4b907c550dd589","name":"hardikthakkar","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/087e4b19d27d12bd3a6771d9ef5f1c8339f6db2c06747baff8c47adba03a7364?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/087e4b19d27d12bd3a6771d9ef5f1c8339f6db2c06747baff8c47adba03a7364?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/087e4b19d27d12bd3a6771d9ef5f1c8339f6db2c06747baff8c47adba03a7364?s=96&d=mm&r=g","caption":"hardikthakkar"}}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Buy Now, Pay Later: Your Guide to How it Works, When to Use It and When to Skip It","url":"http:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/credit-and-borrowing\/understanding-loans\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\/"},"thumbnailUrl":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/01\/shutterstock_2068070435.jpg?quality=80&w=150&h=150&crop=1","image":{"@type":"ImageObject","url":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/01\/shutterstock_2068070435.jpg?quality=80"},"articleSection":"Uncategorized","author":[{"@type":"Person","name":"hardikthakkar"}],"creator":["hardikthakkar"],"publisher":{"@type":"Organization","name":"RBC Royal Bank","logo":""},"keywords":["credit and debt","managing money"],"dateCreated":"2026-04-17T15:34:43Z","datePublished":"2026-04-17T15:34:43Z","dateModified":"2026-04-22T15:34:49Z"},"rendered":"<script type=\"application\/ld+json\" class=\"wp-parsely-metadata\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Buy Now, Pay Later: Your Guide to How it Works, When to Use It and When to Skip It\",\"url\":\"http:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/money-academy\\\/credit-and-borrowing\\\/understanding-loans\\\/buy-now-pay-later-your-guide-to-how-it-works-when-to-use-it-and-when-to-skip-it\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2026\\\/01\\\/shutterstock_2068070435.jpg?quality=80&w=150&h=150&crop=1\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2026\\\/01\\\/shutterstock_2068070435.jpg?quality=80\"},\"articleSection\":\"Uncategorized\",\"author\":[{\"@type\":\"Person\",\"name\":\"hardikthakkar\"}],\"creator\":[\"hardikthakkar\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"RBC Royal Bank\",\"logo\":\"\"},\"keywords\":[\"credit and debt\",\"managing money\"],\"dateCreated\":\"2026-04-17T15:34:43Z\",\"datePublished\":\"2026-04-17T15:34:43Z\",\"dateModified\":\"2026-04-22T15:34:49Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/rbcroyalbank.com\/p.js"},"featured_img":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/01\/shutterstock_2068070435.jpg?quality=80&w=1024","coauthors":[],"author_meta":{"author_link":"https:\/\/www.rbcroyalbank.com\/en-ca\/author\/hardikthakkar\/","display_name":"hardikthakkar"},"relative_dates":{"created":"Posted 4 weeks ago","modified":"Updated 3 weeks ago"},"absolute_dates":{"created":"Posted on April 17, 2026","modified":"Updated on April 22, 2026"},"absolute_dates_time":{"created":"Posted on April 17, 2026 11:34 am","modified":"Updated on April 22, 2026 11:34 am"},"featured_img_caption":"","tax_additional":{"post_tag":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/credit-and-debt\/\" class=\"advgb-post-tax-term\">Credit and Debt<\/a>","<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/managing-money\/\" class=\"advgb-post-tax-term\">Managing Money<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Credit and Debt<\/span>","<span class=\"advgb-post-tax-term\">Managing Money<\/span>"],"slug":"post_tag","name":"Tags"},"rbc_content_type":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/content-type\/article\/\" class=\"advgb-post-tax-term\">Article<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Article<\/span>"],"slug":"rbc_content_type","name":"Content Types"},"rbc_audience":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/audience\/youth\/\" class=\"advgb-post-tax-term\">Youth<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Youth<\/span>"],"slug":"rbc_audience","name":"Audiences"},"rbc_lob_group":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/lob-group\/ways-to-bank\/\" class=\"advgb-post-tax-term\">Ways to Bank<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Ways to Bank<\/span>"],"slug":"rbc_lob_group","name":"LOB Groups"},"rbc_difficulty_level":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/difficulty-level\/beginner\/\" class=\"advgb-post-tax-term\">Beginner<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Beginner<\/span>"],"slug":"rbc_difficulty_level","name":"Difficulty Levels"},"rbc_mmm_category":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/mmm-category\/banking-basics\/\" class=\"advgb-post-tax-term\">Banking Basics<\/a>","<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/mmm-category\/budgeting\/\" class=\"advgb-post-tax-term\">Budgeting<\/a>","<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/mmm-category\/credit-and-borrowing\/\" class=\"advgb-post-tax-term\">Credit and Borrowing<\/a>","<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/mmm-category\/money-academy\/\" class=\"advgb-post-tax-term\">Money Academy<\/a>","<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/mmm-category\/understanding-loans\/\" class=\"advgb-post-tax-term\">Understanding Loans<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Banking Basics<\/span>","<span class=\"advgb-post-tax-term\">Budgeting<\/span>","<span class=\"advgb-post-tax-term\">Credit and Borrowing<\/span>","<span class=\"advgb-post-tax-term\">Money Academy<\/span>","<span class=\"advgb-post-tax-term\">Understanding Loans<\/span>"],"slug":"rbc_mmm_category","name":"Categories"},"ep_custom_result":{"linked":[],"unlinked":[],"slug":"ep_custom_result","name":"Custom Results"}},"series_order":"","jetpack_sharing_enabled":true,"primary_tag":"510","primary_rbc_mmm_category":"370","_links":{"self":[{"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter\/96482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter"}],"about":[{"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/types\/rbc_my_money_matter"}],"author":[{"embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/users\/112"}],"version-history":[{"count":6,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter\/96482\/revisions"}],"predecessor-version":[{"id":97644,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter\/96482\/revisions\/97644"}],"up":[{"embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter\/57317"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/media\/96484"}],"wp:attachment":[{"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/media?parent=96482"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/tags?post=96482"},{"taxonomy":"rbc_content_type","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_content_type?post=96482"},{"taxonomy":"rbc_audience","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_audience?post=96482"},{"taxonomy":"rbc_lob_group","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_lob_group?post=96482"},{"taxonomy":"rbc_difficulty_level","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_difficulty_level?post=96482"},{"taxonomy":"rbc_mmm_category","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_mmm_category?post=96482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}