E-commerce has become more than just a convenience—it's now a staple of modern life. Millions of people now prefer to browse and shop from the comfort of home, with just the click of a button, and many of them are especially drawn in by how easy it is to pay. Whether you're grabbing groceries, splurging on electronics, or investing in home improvements, having flexible and secure payment methods at your disposal streamlines the entire online shopping experience.
Credit cards and Buy Now, Pay Later (BNPL) schemes have risen to the forefront of this convenience-driven shopping evolution and become go-to tools for customers seeking smoother online transactions. At first glance, these two payment methods may seem interchangeable, as they both give you a quick way to pay without needing immediate cash. But while they share some surface-level similarities, their structures, benefits, and implications for your financial health vary significantly. Deciding which option suits you best often depends on how much flexibility you need and what perks matter most to you.
In this article, we'll explore these payment methods side by side to help you decide which one better aligns with your financial goals and shopping habits. With expert insights from Maya, one of the Philippines' top financial services providers, we’ll dive deep into the perks and pitfalls of both credit cards and BNPL services, so you can confidently choose the one that suits you best.
Perks and Rewards
Not all payment methods offer something in return for spending, but credit cards are often packed with perks designed to reward users for their purchases. Take Maya’s Landers Cashback Everywhere Credit Card as an example—it provides cardholders up to 5% cashback on purchases made at Landers, 2% on dining, and 1% on other qualified transactions.* This unbeatable rewards system is one of the major reasons the Maya credit card is widely acclaimed as the best credit card for online shopping in the Philippines.
Credit card rewards can quickly add up and translate to tangible savings over time, especially for frequent shoppers. Other cards may include perks like travel points, hotel discounts, or exclusive access to events, all of which give cardholders additional value beyond the purchases they make. If rewards are a major priority for you, then you’ll definitely want to make sure you have the best credit card for online shopping available.
On the other hand, BNPL services typically focus more on the convenience of splitting up payments rather than offering long-term rewards or perks. While some BNPL platforms may occasionally feature promotional discounts with specific retailers, these tend to be more limited compared to the broad-reaching benefits of credit cards.
Flexibility
When it comes to managing payments, some consumers want the highest possible degree of control. Credit cards give you the freedom to either pay off your balance in full or carry it over time with minimum payments, so they’re a more flexible option for those who need to adjust their spending across months or even years. Increased flexibility can be especially useful for managing larger purchases or unexpected expenses without the pressure of immediate repayment.
In contrast, BNPL services lock you into a fixed installment schedule. While this structured approach makes short-term budgeting easier, it definitely gives you a lot less wiggle room. Payments are automatically deducted based on predetermined due dates, which can feel restrictive if your financial situation changes or you need more time to pay.
Consumer Protections
Credit cards typically come with much stronger consumer protections than BNPL services. Most credit cards come with fraud protection, chargeback rights, and sometimes even extended warranties on certain purchases. If there’s an unauthorized charge or an issue with an item, credit card companies allow you to dispute the transaction, which helps protect you from financial losses. The Landers Cashback Everywhere Credit Card also includes enhanced security features like a dynamic CVV that stays valid for only 24 hours for an additional layer of protection against fraud.
BNPL services, on the other hand, are somewhat less secure on the whole. While some platforms may provide basic fraud prevention, they often lack the robust purchase protections that credit cards deliver. Additionally, if there’s a problem with an item or the merchant, BNPL users may have limited recourse when trying to get a refund or dispute a transaction.
Ease of Use
The checkout experience is another area where both credit cards and BNPL have their strengths, but their ease of use depends largely on how you prefer to manage payments. Credit cards require you to enter your card information during checkout, though many online retailers allow you to store these details securely for future purchases. This makes repeat transactions fast and simple—just a few clicks and you’re done.
BNPL services often offer an even more seamless experience, as they’re typically integrated directly into the checkout process. You can quickly opt for installment payments without needing to input card details, so it’s an appealing option for those who want to break up payments instantly. However, you still need to manage your payment schedule, and this may require more attention than just paying a monthly credit card bill.
Interest Rates
One of the major distinctions between credit cards and BNPL is how interest is charged. Credit cards often carry high interest rates, especially if you don't pay your balance in full each billing cycle. These rates can quickly add up and make purchases much more expensive over time if you’re only making minimum payments. It’s important to be aware of these rates, as failing to pay off a balance can lead to significant interest charges.
In contrast, many BNPL services offer interest-free installments, as long as you make payments on time. This can be a huge advantage for shoppers looking to split up large purchases without incurring additional costs. However, missing a payment can result in late fees, and some BNPL providers charge interest on longer-term financing options. So while BNPL might seem like a free option upfront, you’ll still need to read the fine print and stay on top of your payment schedules to avoid unexpected fees.
In the end, the choice between a credit card and BNPL depends on your financial priorities and habits. While both have their merits, it’s important to assess which option aligns better with your long-term goals. If you’re looking to maximize rewards while maintaining flexibility, look no further than Maya’s Landers Cashback Everywhere Credit Card, the best cashback credit card for online shopping. If you haven't yet, consider applying today to start making the most of your everyday purchases.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
