Are you looking for ways to buy an item via installments without a credit card? Well, Buy Now Pay Later (BNPL) services are your answer. BNPL provides customers with short-term funding and zero to low interest payments that prioritize flexibility and convenience.
Atome, Billease, and HomeCredit are three of the most popular BNPL service providers in the Philippines today. So let’s explore these options closely to determine which has the lowest rate – when buying family necessities or big-ticket purchases.
Overview of Buy Now Pay Later services in the Philippines
Buy Now, Pay Later services have become increasingly popular in the Philippines due to pandemic-induced consumer reliance on cashless transactions and the country’s young population that’s quick to adopt the technology.
In 2021, the estimated transaction volumes were worth $400 million. UnaCash research suggests that BNPL transaction volume in the Philippines’ e-commerce ecosystem could grow 568% to $2.5 billion by 2026.
Atome, Billease, and HomeCredit are some of the popular providers that offer different options and fees. They are also partnered with local merchants, which makes it easier for you to purchase items online.
Atome app overview
Atome is a BNPL platform that offers a three-month installment program at zero percent interest to its registered customers (as of this time of writing). It’s available on iOS and Android devices and has partnered with over 1,500 brands like Nike, The SM Store, and Zalora.
Users link their credit or debit cards and e-wallets to the app, and they only pay one-third of the total amount of the purchased item. The remaining two payments are spread out 30 days apart.
You can get your products immediately instead of waiting weeks or even months while still being able to budget responsibly by paying off your purchase in smaller monthly installments.
Here’s a list of what you can do with Atome app.
- Non-credit card users can spend up to ₱15,000, while credit card users have ₱30,000 spending limit.
- Select Atome as the mode of payment during checkout online or use the app at in-store cashiers.
- Make the first payment at point of purchase, with the remaining two payments spread over 30 days apart.
- Keep track of payments through Atome’s app to never miss a payment again.
- Sign up for an Atome account in just 72 seconds and pay seamlessly with debit or credit cards.
- Shop from various online and offline stores with exclusive discounts and offers.
Atome app eligibility requirements
The service is pretty straightforward and student-friendly. You only need the following requirements:
- You must be at least 18 years of age.
- Valid ID
- No minimum income requirement
- Credit or debit card
Atome app limitations and disadvantages
Three months installment plan at 0% interest seems too good to be true. While the Atome app is a legitimate company, you’ll have to watch out for these:
- Poor customer support according to App Store and Google Play Store user reviews.
- Frequent failed transactions on due dates, even if the linked credit cards work.
- Late payments are charged ₱300 as a one-time administration fee.
- Misleading marketing promotions to lure new customers.
Billease is an online leasing platform and solution. It offers individuals and small businesses access to loans, allowing them to acquire items and equipment with flexible payment options.
Unlike Atome app, this service requires you to submit proof of income and billing before you take out a loan. You may choose the desired amount you want to borrow, but there’s no guarantee that Billease will grant you the total amount.
The service boasts that it can approve applications on the spot, whereas some may take one banking day. Use the approved loan on Lazada purchases or other Billease partner merchants.
Other Billease service offerings and fees:
- Apply for loans online and get approved within 24 hours. No credit card required.
- The lowest interest rate is 3.49% monthly, with 0% APR (Annual Percentage Rate) on select merchants.
- Borrow up to ₱40,000 and choose from any payment terms from 30 days up to 12 months.
- Shop on partner merchants without a credit card, like TUMI, PowerMac Center, Havaianas, and Lazada, to name a few.
Billease eligibility requirements
Before you apply for a Billease loan online, check the list of requirements:
- You must be at least 18 years of age.
- Valid ID
- Proof of income
- Proof of billing such as credit card statement or utility bill
- Bank account, e-wallet, or other online payment channels to pay your loan
Billease limitations and disadvantages
The service can be an excellent financing option, especially if you’re also trying to build your credit score. However, there are also drawbacks you need to consider.
- Longer terms mean you pay a higher interest rate — higher than 3.49% per month as advertised.
- Watch out for the service fee of 10% for loan disbursal, which is deducted from your preferred e-wallet payment.
- High penalty fees for overdue or late payments.
- Some of its mobile users claimed it has poor customer service.
HomeCredit Qwarta Overview
HomeCredit is a financial services provider that offers consumer loans and other financial services. It has developed its own Settle Bills, Pay Later service called Home Credit Qwarta.
Customers can use it to pay bills, and outstanding credit card debts and buy now pay later at HomeCredit partner merchants.
This service is pre-approved, which means it’s available only to existing HomeCredit users. Aside from bills payments and BNPL features, they can also top up their prepaid mobile number and earn a 4.00% discount on all networks.
Check out other HomeCredit Qwarta features and fees:
- The service charges you 0.13% interest per day.
- It serves like a virtual credit line but without an annual fee.
- Get up to ₱10,000 as your spending limit and use its BNPL feature on select merchants.
- Purchase groceries via Scan to Pay feature and shop online.
- Use your credit line to top up your Lazada wallet.
- Pay your bills for Meralco, Converge, PLDT, Maynilad, Manila Water, and more than 300 billers.
- Shop at selected merchants like Ideal Visionl, 911 Skincare, and Beijing Foot Spa and use QR PH to earn a rebate within the first 30 days of use.
HomeCredit eligibility requirements
To access this service, ensure you have the following:
- Two Valid IDs with complete address
- Proof of address
- Must be an existing HomeCredit user with a good track record on previous loans
If you don’t have a record on HomeCredit yet, you may apply for a loan as long as you are:
- A Filipino citizen
- At least 18 years of age
- Employed, self-employed, businessperson, or a pensioner receiving regular remittance.
HomeCredit limitations and disadvantages
Like most lending companies, HomeCredit screens loan applicants. Before using the
Qwarta BNPL service, consider its drawbacks:
- Interest is charged daily starting the day after you make a transaction.
- Accumulated interest is high — the longer the payment term, the higher the interest you pay.
- Penalty fee is 5.00% of the Statement of Account’s total amount due if you fail to pay the minimum on the due date.
- Most of its mobile app users complain about the user experience (UX) when browsing the app.
Final thoughts — which one has the best offer?
Overall, Buy Now Pay Later services in the Philippines are a great way to break large payments into smaller, more manageable chunks.
Depending on your needs, preferences, and budget, many options are available, so it pays to do your research first. Research shows that BNPL can benefit those who set out smart payment plans that work with their budgets accordingly. Whether you choose Atome, Billease, or HomeCredit’s Qwarta app, read the terms and conditions of said service before signing up.
The Atome app is designed for consumers who don’t have proof of income and can still purchase items as long they link their credit or debit cards. It doesn’t have an approval process, unlike Billease and HomeCredit.
If you’re just after stretching out a big-ticket item without paying interest rates, then Atome is a good choice because it only offers three months repayment scheme. However, Billease and HomeCredit offer longer and more flexible terms but with additional interest and charges.
Although these BNPL services could be the key to financial betterment if used responsibly, they could become financial burdens if misused.
So, please be cautious while making such decisions.
We hope this article has helped you to understand the nuances of Buy Now Pay Later services in the Philippines, and we wish you successful shopping experiences online! Let us know what you think in the comments below!