Updated: Mar 26, 2025

Smartphones are more than just communication tools, but with the latest models costing hundreds or even thousands of dollars, affording a new phone upfront can be challenging. Buy Now, Pay Later (BNPL) programs allow consumers to spread out the cost over time, but understanding how they work and the potential risks involved is crucial before committing to one.

How BNPL for Smartphones Works

BNPL services function as short-term financing options that allow customers to purchase a phone immediately and pay for it in smaller, scheduled installments. Instead of requiring a large upfront payment, the total cost is split into weekly, biweekly, or monthly payments. Depending on the provider, some BNPL plans come with zero interest if payments are made on time, while others may include interest or late fees if deadlines are missed.

Consumers can access BNPL options in several ways. Many major smartphone manufacturers partner with BNPL providers to offer installment plans on their websites. Apple, for example, allows eligible customers to finance an iPhone through Apple Card Monthly Installments, which offers zero-interest financing over 12 or 24 months. Similarly, Samsung Financing provides installment payment plans through its website, allowing buyers to spread the cost of a new device over time.

Wireless carriers also offer BNPL-style financing. Verizon, AT&T, and T-Mobile all have device payment plans, which allow customers to finance a phone over 24 or 36 months while bundling the cost with their monthly service bill. Additionally, third-party BNPL providers like Affirm, Klarna, Afterpay, and PayPal Pay in 4 have partnered with electronics retailers such as Best Buy, Walmart, and Amazon, making BNPL available for smartphone purchases outside of direct manufacturers and carriers.

Where to Find BNPL Smartphone Plans

Several providers offer BNPL smartphone financing, each with its own terms and eligibility requirements.

Apple Card Monthly Installments

Apple’s BNPL option allows users to finance iPhones and other Apple products with zero-interest monthly payments. Customers must use an Apple Card to qualify, and payments are spread over 12 or 24 months, depending on the device. This plan is available exclusively through Apple’s website and stores. More information can be found at Apple’s official financing page.

Samsung Financing

Samsung offers installment plans for its Galaxy devices through Samsung Financing, which is managed by TD Bank. Customers can spread payments over 24 or 36 months, often with 0% APR promotional financing. Samsung also allows trade-ins to lower the cost of a new device. Details are available at Samsung Financing.

Carrier Device Payment Plans

Major carriers like Verizon, AT&T, and T-Mobile offer financing options for customers who want to purchase a phone while bundling the payments with their service plan. These installment plans typically last 24 to 36 months with 0% interest, but they often require a credit check. More details can be found on their official websites:

• Verizon Device Payment Plans
• AT&T Installment Plans
• T-Mobile Equipment Installment Plans

Third-Party BNPL Providers

Retailers such as Best Buy, Walmart, and Amazon allow customers to purchase smartphones using BNPL services like Affirm, Klarna, and PayPal Pay in 4. These providers typically split the total cost into four biweekly payments or monthly installments, depending on the terms. Some providers charge 0% interest, while others apply interest rates based on creditworthiness. More information can be found on their respective websites:

• Affirm
• Klarna
• PayPal Pay in 4

Benefits of BNPL for Smartphones

One of the biggest advantages of BNPL financing is accessibility. Many providers offer quick approvals with soft credit checks or no credit checks at all, making it easier for those with limited or poor credit history to qualify. Unlike traditional loans or credit cards, BNPL plans often provide interest-free installment options, especially if the balance is paid on time. This makes BNPL an appealing alternative for budget-conscious consumers.

Another benefit is flexibility. Instead of paying a large sum upfront, buyers can spread out payments over time, making it easier to manage finances. Many BNPL services allow customers to choose their repayment schedule, whether it’s weekly, biweekly, or monthly. This flexibility can help consumers afford higher-end smartphones that might otherwise be out of reach.

Risks and Drawbacks of BNPL

While BNPL offers a convenient way to purchase a smartphone, there are some risks to consider. One potential downside is hidden fees. While many BNPL providers advertise 0% interest, missing a payment can lead to late fees, penalties, or even interest charges. Some BNPL agreements also include retroactive interest, meaning that if the balance isn’t fully repaid by the due date, interest is applied to the entire purchase amount.

Another concern is credit impact. Some BNPL providers report late or missed payments to credit bureaus, which could negatively affect a borrower’s credit score. Additionally, signing up for multiple BNPL plans at once can lead to overextension, making it difficult to keep up with payments. Unlike credit cards, BNPL plans require fixed installment payments, meaning there is less flexibility if financial circumstances change.

Alternatives to BNPL for Smartphone Financing

For those unsure about using BNPL, other financing options may be worth considering. Credit cards with 0% APR introductory periods can provide an interest-free financing option if the balance is paid off before the promotional period ends. Some banks and credit unions offer personal loans with fixed repayment terms that may be more structured than BNPL plans. Additionally, trade-in programs can help lower the cost of a new smartphone by allowing customers to exchange their old device for credit toward a new purchase.

Final Thoughts

Buy Now, Pay Later smartphone financing can be a useful tool for those who need a new device but prefer to pay over time rather than upfront. With options available through manufacturers, carriers, and third-party providers, BNPL has made smartphones more accessible for many consumers. However, it’s essential to read the terms carefully, watch out for potential fees, and ensure that payments can be made on time. While BNPL can be a convenient solution, responsible use and proper budgeting are key to avoiding unnecessary debt. For those who prefer alternative financing, credit cards, personal loans, and trade-in programs may provide more structured or cost-effective options. No matter which method is chosen, understanding the full cost of the purchase and planning ahead will help ensure a financially responsible decision.