Pay Later, Revolut's "responsible instalments payment option," will launch this week in Ireland. 

Pay Later will be the first BNPL product in Ireland with an approved credit limit and affordability. Customers won't be limited to select merchant agreements while using Pay Later. In Ireland, where Pay Later will launch first, 1.9 million adults hold a Revolut account. The challenger bank will sell the product in Poland and Romania by 2022. 

Qualified clients can utilise Pay Later for purchases up to €499 and spread the cost over three monthly instalments, with the first instalment paid at the time of purchase. The latter two payments include a 1.65% fee per item. 

After evaluating consumer affordability through open banking, Revolut underwrites customer appropriateness for 'Pay Later' and gives them a customised limit. Revolut approves the credit limit before the transaction, unlike other BNPL suppliers. Once accepted, Revolut users can activate Pay Later and monitor their balance in the Cards section and Pay Later hub. Customers can refund early without costs. 

Pay Later is a fast-growing area of personal finance and consumer spending, therefore we're pleased to include it to our financial superapp. Revolut Pay Later gives clients greater control and freedom over their personal money in a responsible way by spreading the cost of goods across three instalments. This encourages consumers to pay within two months, rather than using overdrafts and credit cards. 

Under new guidelines suggested by the UK government, buy now, pay later lenders will be required to conduct affordability checks and avoid misleading advertising and promotions. Under the long-awaited plans, lenders would be expected to evaluate loan affordability and change financial promotion guidelines to ensure BNPL ads are "fair, straightforward, and not deceptive." 

Lenders offering the product will need FCA approval, and borrowers can complain to the Financial Ombudsman Service (FOS).

Treasury Secretary John Glen states: 

"By holding purchase now, pay later to the same high standards as other loans and credit, we safeguard consumers and support the safe expansion of this innovative business in the UK."