Buy Now, Pay Later Phones: The Complete 2025 Guide

What Is Buy Now Pay Later?

1) What “BNPL phones” actually means

“Buy Now, Pay Later” phones are smartphones you can buy immediately but pay for over time through a financing plan. These plans are typically offered by one of three sources:

The retailer, such as online marketplaces or electronic stores that integrate BNPL at checkout.

A BNPL provider like Affirm, Klarna, Afterpay, or PayPal Pay in 4. These companies pay the seller upfront and collect installments from you.

Your mobile carrier, such as AT&T, Verizon, or T-Mobile, through an Equipment Installment Plan (EIP).

Some plans split payments into four biweekly installments, others extend payments over 6 to 36 months. Some are interest-free; others include an annual percentage rate (APR). The phone is typically yours right away, but missing payments can trigger late fees or damage your credit.

In recent years, regulators in the United States and United Kingdom have tightened rules for BNPL products, requiring clearer disclosures and more transparency about fees and credit reporting.

2) Why BNPL got popular for phones

There are several reasons BNPL financing exploded in popularity for smartphones:

Phones have become extremely expensive, often costing as much as laptops or small computers.

The checkout process for BNPL is very simple, often requiring only a few clicks and a quick soft credit check.

BNPL services often approve customers who lack a long credit history, making them attractive to young adults and first-time buyers.

In Mexico, BNPL is growing quickly. Companies like Kueski Pay partner with major brands such as Samsung México to let consumers buy phones and pay in installments without a credit card.

3) BNPL vs. Carrier Financing vs. Credit Cards

Here is a comparison between common phone financing methods.

Feature BNPL (Affirm/Klarna/Afterpay/PayPal) Carrier EIP (AT&T, T-Mobile, Verizon) Credit Card (0% intro APR)

Term 4 biweekly to 3–36 months 24–36 months 12–18 months promo

Interest 0% for short terms, APR on longer ones Often 0%, tied to service contract 0% intro, regular APR after

Credit Check Usually soft inquiry Standard credit check Hard inquiry

Ownership Usually unlocked Locked until paid off Immediate

Fees Late fees possible Early termination fees Balance transfer fees

4) Who Offers BNPL for Phones in 2025

Major players in the BNPL space include:

Affirm

Klarna

Afterpay

PayPal Pay in 4

Kueski Pay (Mexico)

In June 2024, Apple ended its Apple Pay Later service and transitioned to third-party integrations. Apple Pay now supports BNPL plans through companies like Affirm, and also offers installment options through partner banks.

5) How BNPL Approvals and Billing Work

You choose a phone at checkout and see BNPL options.

The BNPL provider runs a quick approval, usually using a soft credit check.

The payment schedule is displayed before you confirm.

Payments are typically set to auto-pay using your card or bank account.

You receive notifications before each payment and can manage your account through the provider’s app.

If you return your phone, refunds can take time to process through BNPL systems. Regulators now require clearer refund and dispute processes for BNPL, similar to credit card protections.

6) Credit Reporting in 2025

Credit reporting for BNPL loans is expanding quickly.

Affirm reports all BNPL loans to Experian (starting April 2025) and TransUnion (starting May 2025).

Klarna began reporting term loans opened on or after November 1, 2024, to TransUnion.

Not all credit scoring models include BNPL data yet, but newer models will.

This means paying on time could help you build credit, but missed payments might lower your score once reporting becomes widespread.

7) Costs and Fees

Even if a BNPL plan says “0% interest,” you should still check for other potential costs:

Late payment fees

Returned payment fees

Interest on long-term plans

Refund delays when returning merchandise

If you are confident you will pay every installment on time, BNPL can be cheaper than using a credit card. However, if there’s a chance you’ll miss a payment, you may be better off with a 0% intro APR credit card.

8) When BNPL Makes Sense (and When It Doesn’t)

BNPL is useful when:

You can afford the payments easily.

You find a 0% interest plan.

You’re buying an unlocked phone without a carrier commitment.

BNPL is risky when:

You’re juggling multiple BNPL plans.

You miss payments frequently.

You may return the device (refunds take longer through BNPL).

9) BNPL for Resellers and Content Creators

If you buy phones for resale or for product review content:

BNPL can free up cash flow but can also stack up obligations quickly.

Refunds for returns can take days or weeks, which may hurt your business cycle.

Ensure phones are unlocked and keep all documentation (IMEI, receipts).

10) BNPL vs. Carrier Promotions

Carriers often offer deals with bill credits over 24–36 months. For example, you may get $800 in credits over two years. However, if you cancel early, you lose those credits and must pay the full remaining balance.

BNPL via a retailer might offer an instant discount instead, and those phones are usually unlocked, giving you more freedom.

11) BNPL in Mexico

Kueski Pay has become a leading BNPL option in Mexico. It is widely accepted online and is expanding into physical retail stores. Samsung México, for example, accepts Kueski Pay for installment phone purchases.

When using BNPL in Mexico, check the following:

Which merchants accept Kueski Pay

Maximum transaction limit for electronics

Whether phones are unlocked or tied to a carrier

12) Regulation and Consumer Protections

United States: The Consumer Financial Protection Bureau (CFPB) has made it clear that BNPL products must follow similar consumer protection standards as credit cards. This includes clear disclosure of terms and better dispute handling.

United Kingdom: The Financial Conduct Authority (FCA) and HM Treasury are working on legislation to bring more BNPL products under formal regulation.

Globally, regulators are pushing for standardized disclosures and stricter affordability checks to prevent consumer overextension.

13) How to Choose the Right BNPL Plan

Calculate the total cost, including taxes and accessories.

Compare BNPL, carrier, and credit card options.

Check for hidden fees.

Verify whether the phone is unlocked.

Confirm if the provider reports payments to credit bureaus.

Set up autopay to avoid missing due dates.

14) Examples of BNPL Plans

Example 1: Pay-in-4 Plan

Phone price: $800

Tax: $64

Total: $864

Payments: 4 installments of $216 every two weeks.

No interest if paid on time.

Example 2: 12-Month Plan at 15% APR

Total: $864

Monthly payment: about $77.50

Total paid: $930

The cost of flexibility is about $66.

Example 3: Carrier Plan with Bill Credits

Phone price: $999

Monthly payment: $41.63

Bill credit: $16.67 per month

Effective cost: $24.96 per month if you stay for 24 months.

15) Common Traps to Avoid

Taking out multiple BNPL loans at once

Missing payments due to lack of reminders

Not tracking refund timelines after returns

Believing all BNPL plans are truly 0%

Keep a record of all BNPL plans and due dates. If you need to return a phone, always keep your tracking and proof of return.

16) BNPL for Students and Parents

If a parent helps a student buy a phone, the account should be in the payer’s name.

Confirm how device protection or insurance claims are handled if the phone is financed.

17) BNPL for Phone Resellers

If you resell phones:

Keep your days-to-sell cycle shorter than your BNPL repayment period.

Document every device’s serial number and IMEI.

Check refund policies before committing to large orders.

18) Data and Privacy

BNPL providers collect data on purchases, payment behavior, and device details. As credit reporting expands, this data may influence future credit decisions.

On-time payments can build trust; missed ones could reduce access to credit.

19) Industry Trends in 2024–2025

Apple ended Apple Pay Later in mid-2024. Apple Pay now supports third-party BNPL via Affirm and card-based installments.

Affirm is expanding credit reporting to major bureaus in 2025.

Klarna is adding reporting for term loans starting late 2024.

Regulators in the U.S. and UK are drafting new disclosure and affordability rules.

20) BNPL Pre-Purchase Checklist

Confirm total cost with taxes and accessories.

Read the BNPL terms carefully.

Check for fees and interest.

Make sure the phone is unlocked.

Verify credit reporting status.

Set reminders for payment dates.

Save receipts, IMEI numbers, and screenshots.

21) Frequently Asked Questions

Q: Will BNPL help my credit score?

A: Possibly. Affirm and Klarna are starting to report BNPL data in 2025, which may influence your score. Pay on time to benefit; missed payments can hurt.

Q: Is BNPL safer than a credit card?

A: BNPL can be cheaper if you pay on time, but credit cards offer stronger dispute protection.

Q: What happened to Apple Pay Later?

A: Apple discontinued it in June 2024 and now partners with third-party BNPL providers.

Q: Can I use BNPL on refurbished phones?

A: Yes, if the retailer supports it. Check warranty and return policies first.

Q: Is BNPL available in Mexico?

A: Yes. Kueski Pay is widely available, including partnerships with Samsung México.

22) BNPL Decision Flow

Do you need the phone now? If not, save and buy outright.

Is there a 0% plan with autopay? Choose that.

Is it an interest plan? Compare with 0% intro credit card offers.

Carrier deal cheaper? Check if the phone will stay locked.

Do you want to build credit? Use a provider that reports payments.

Keep one payment saved in your bank as a safety buffer.

23) Tips to Minimize Risk

Name each plan clearly in your calendar (e.g., “iPhone 15 - Affirm - May 2025”).

Use autopay for every BNPL account.

Contact your BNPL provider early if you have trouble paying.

Screenshot all confirmations and payment schedules.

24) For Merchants and Creators

If you sell or promote phones online:

Display the full price, including taxes and any BNPL fees.

Avoid misleading claims about “free” or “instant approval.”

Ensure return and refund timelines are transparent.

For Mexico, note that Kueski Pay can boost conversions, but refund and warranty systems must be reliable.

25) Glossary

BNPL: Buy Now, Pay Later, a payment system allowing installment purchases.

Pay-in-4: Four biweekly interest-free payments.

EIP: Equipment Installment Plan from a carrier.

Furnishing: Reporting of payment data to credit bureaus.

Reg Z: U.S. Truth in Lending Act regulation governing credit disclosures.

26) Bottom Line

BNPL can be a useful and low-cost way to buy a phone, but only if you manage payments carefully. In 2025, BNPL systems are becoming more like traditional credit: more credit reporting, more regulation, and more transparency.

Used responsibly, BNPL helps spread out large expenses without interest. Misused, it can lead to fees, debt stacking, and damaged credit. Treat every BNPL plan with the same discipline as a credit card—track it, pay it early, and always read the fine print.