SPayLater vs. LazPayLater: Which BNPL Suits You Best?
Manila/ Venture/ Money

SPayLater vs. LazPayLater: Which BNPL Suits Your Shopping Needs Best?

S Pay Later vs Laz Pay Later Which BNPL Suits You Best Photo by CIMB Bank

The pandemic triggered a frenzy for online shopping, especially during the lockdown days. But even with the non-existent lockdown restrictions today, it seems that online shopping is not showing any signs of slowing down. Even though we can buy just about anything in physical stores, nothing beats the convenience the Internet gives us when it comes to shopping.

Leading the pack among e-commerce platforms in the Philippines are Shopee and Lazada. And if having our parcels delivered directly to our doorsteps wasn’t convenient enough, these two apps provide even more convenience by lightening the burden on our wallets through their buy-now-pay-later (BNPL) features.

Although they have similar policies, Shopee’s SPayLater and Lazada’s LazPayLater differ in many ways. If you’re stuck with choosing which BNPL offer suits your online shopping needs the best, below is a guide to help you compare the two and choose.

Application and Requirements

Both SPayLater and LazPayLater are available for Shopee and Lazada users aged 21 to 45 years old. Applying for them is fairly easy. You only need a one-time PIN (OTP) from your registered mobile number, a clear photo of a valid government ID, a selfie for face verification, and a filled-out form with the necessary details. Just make sure the ID you’ll be submitting has a date of birth for faster approval.

Online shopping

Approvals for both SPayLater and LazPayLater both take a few seconds to up to 24 hours. However, while there is very little chance, your application may be rejected if you provided inaccurate information, did not meet the requirements, or have a bad credit history, among other reasons.

Verdict: Tie, both have around the same requirements and turnaround time for approvals

Credit Limit, Interest Rates, and Processing Fees

Those who are just starting a LazPayLater account can get a credit limit of up to P15,000. This is calculated based on the personal information you input and Lazada’s comprehensive evaluation of your profile. This limit increases the more you use and repay your LazPaylater bills.

SPayLater’s credit limit, on the other hand, ranges from P1,500 to P50,000, calculated depending on your spending behavior and payment history. This will also go up as you use the funds and repay them. Shopee also grants temporary credit limit increases, which you will be notified of as long as you turn on accepting notifications from the app.

In terms of interest rate, SPayLater gives from 1% to 5% of the total checkout amount, plus a processing fee of 0% to 2%, which is calculated depending on the selected installment plan.

Meanwhile, LazPayLater’s interest fees, according to CIMB Bank, also range from 1% to 5%, depending on the total checkout amount and installment plan. The main difference is that no processing fee is needed for LazPayLater payments.

Lazada's LazPayLater Interest Fee Calculation Formula
Photo by Website/Lazada

If you’re lucky, you may be able to spot products that are under these apps’ 0% interest programs, too!

Verdict: Tie — while SPay Later may offer a much higher initial credit limit, LazPayLater has no processing fee.

Installment Plans and Due Dates

For both SPayLater and LazPayLater, you can choose installment plans from one to 12 months. The longer the plan you choose, the higher the interest fee.

These two BNPL options differ in due dates and statement cycles. For Lazada, the billing begins every first day of the month, ends on the 30th or 31st day, and runs from the moment you checkout an item via LazPayLater. Monthly statements are given on the first day of the next month, with a due date on the 16th day following the statement.

SPayLater is more flexible with due dates on every fifth or 15th day of the month. Only when your parcel arrives and you click the “Receive” button will the bill for the item you purchased be added to your payment due.

Shopee SPayLater Loan Summary Table for Billing Cycles
Photo by Website/Shopee

The due date for SPayLater orders completed from the current month’s fifth day to the succeeding month’s fourth day will be on the latter’s 15th day. Meanwhile, the due date for orders completed from the current month’s 25th day to the succeeding month’s 24th day will be on the fifth day after the billing cycle.

Verdict: SPayLater

Late Payment Fees

It is always recommended for Lazada and Shopee users to pay their BNPL bills on the required due date. But in case you fail to pay on time, SPayLater will add a 2.5% to 5% late payment fee to your bill.

On the other hand, LazPayLater has more tolerance for late payments with a two-day grace period. Failure to pay during the grace period will result in an overdue fee, which is calculated depending on your payment terms and loan amount.

Verdict: LazPayLater

Online Shopping

Depending on what you need or what you’re more comfortable using, LazPayLater and SPayLater both have their pros and cons. Just a friendly reminder, though: never let your SPayLater and LazPayLater perks ruin your financial priorities. Remember, using these BNPL features still means you’re incurring debt, so shop wisely!

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