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Revolut launches ‘buy now, pay later’ product in Ireland

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Nikolay Storonsky, chief executive officer of Revolut. Photograph: Luke MacGregor/Bloomberg

Nikolay Storonsky, chief executive officer of Revolut. Photograph: Luke MacGregor/Bloomberg

Nikolay Storonsky, chief executive officer of Revolut. Photograph: Luke MacGregor/Bloomberg

Digital bank Revolut has begun rolling out a buy now, pay later instalments payment product with customers in Ireland from this week.

Revolut’s Pay Later product enables consumers to spread the cost of purchases up to €499 across three instalments and can be used for both online and in-store purchases.

The new service involves an approved credit limit for customers, a first here in the fast-growing but controversial buy now, pay later market. Unlike other providers the service does not require partnership between retailers and Revolut, making it more like a traditional credit card.

A fee of 1.65pc per purchase will be charged and repaid as part of the final two instalments.

There is no penalty for early repayment, Revolut said.

Buy now, pay later services have expanded dramatically in recent years with major players In Ireland including Sweden’s Klarna and Humm, owned by Australia’s Flexi-Fi, expanding mostly through partnership with retailers to offer short-term low-costs credit for purchases.

The appeal of buy now, pay later is the ability to spread the cost of purchases but downsides include late payment penalties and potential bad credit when payments are missed.

The rapid growth of the sector has raised concerns in the UK in particular, where authorities have moved to regulate products.

While buy now, pay later has proved hugely popular with consumers, especially for online shopping, industry analysts now question whether the rapid expansion of the sector will continue as interest rates go up.

Revolut, whose CEO is Nikolay Storonsky, has 18 million customers globally – around 10pc of them in Ireland.

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