BNPL vs. Credit Card: What’s the Better Way to Buy Gadgets in the Philippines?

Buying a new gadget these days is a bit like walking into a candy store—you’re dazzled by shiny choices, but you’ve only got enough for one treat. Ever stood at checkout, eyeing that sleek new smartphone or laptop, unsure whether to swipe your credit card or go for "Buy Now, Pay Later"? You're not alone. With the rising cost of gadgets and growing payment options in the Philippines, choosing the right financing method can make or break your budget. So which is better: BNPL vs credit card for your next gadget haul?

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BNPL lets you buy a gadget now and pay for it over time—usually 3 to 12 months—often with 0% interest if paid on time. It’s like layaway, but you get the item immediately. In the Philippines, BNPL has taken off with options like GCash GGives, BillEase, and Home Credit, integrated directly into Shopee, Lazada, and even SM Appliance.

Example: Want the latest iPhone 15? A typical BNPL plan might require a 20% down payment, with the rest spread across 6 to 12 months. No credit history? No problem. BNPL providers rarely run strict checks, making them accessible to many Filipinos—especially those underbanked.

"BNPL serves approximately 35% of Filipinos who lack sufficient credit access," notes Fintech News Philippines.

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Credit cards, on the other hand, offer revolving credit with the option to convert large purchases into installments—often with 0% interest for select items. Major banks like UnionBank and RCBC let you split payments for gadgets like smartphones and laptops over 3 to 24 months.

Plus, credit cards give perks: cashback, rewards points, and purchase protection. If you’re disciplined about paying your balance in full, those perks can add up quickly without punching a hole in your bank account or racking up high interest rates.

Check out the UnionBank Rewards Credit Card for example. It gives you points for every swipe, which you can convert into gadgets, shopping vouchers, or even air miles.

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According to experts, BNPL provides predictability. You know exactly how much and when to pay. That structure helps avoid the debt spiral.

But credit cards give you more bang for your buck—if used wisely. For example:

• Buy a ₱50,000 laptop using a credit card with 0% interest for 12 months and get 2% cashback = ₱1,000 saved.
• Do the same with BNPL—no cashback or points, but predictable payments.

If you only pay the minimum on a credit card, though, you could rack up ₱10,000+ in interest over a year and may put you into credit card debt.

So the better choice depends on how disciplined you are. Shop within your credit limit and pay on time to avoid interest and build positive credit history.

BNPL: Great for Accessibility and Budgeting

BNPL works best if:

• You don’t qualify for a credit card yet
• You’re buying from platforms like Shopee or Lazada
• You want clear, non-revolving payment terms
• You need quick approval without paperwork

But it’s not without downsides. Many BNPL services don’t report to credit bureaus, so you miss out on building credit. And late fees can stack up if you’re not careful.

MoneySmart warns that BNPL may give a false sense of affordability, leading to gadget hoarding or impulse buying.

Credit Cards: Great for Discipline and Perks

Use a credit card if:

• You pay in full monthly (or have a 0% plan)
• You want to build your credit profile
• You value cashback or points
• You want fraud protection and extended warranties

Even better, cards like the UnionBank Lazada Credit Card offer exclusive discounts, cashback on Lazada purchases, and no annual fees for the first year.

The Hybrid Option: Installment Plans via Credit Cards

Want the structure of BNPL with the perks of a credit card? Some banks offer exactly that. RCBC and UnionBank both allow you to convert large purchases into 0% installment plans.

That means:

• You get the cashback and rewards
• You pay in equal chunks monthly
• You avoid the surprise of interest charges

Explore options on Finmerkado’s credit card hub for deals on installment purchases.

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Carlo, a 29-year-old freelance designer in Quezon City, wanted a Samsung tablet for his workflow. On Shopee, he had two options:

• BNPL via BillEase: ₱3,000 down, 6 months x ₱2,500 = ₱18,000
• Credit card via UnionBank: 0% for 12 months, plus 3% cashback = ₱17,500 total cost

Carlo chose the card. Not only did he save ₱500, but his good payment record improved his credit score.

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Go with BNPL if:

• You have no credit card
• You need a fast, easy approval
• You want to budget with fixed payments

Choose credit cards if:

• You’re eligible and pay on time
• You want long-term benefits and perks
• You plan to buy from Lazada, Shopee, or Apple resellers offering card promos

Or better yet—use a credit card with an installment plan to get the best of both worlds.

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What’s Your Next Move?

Gadgets aren’t cheap. Whether you're buying a phone, tablet, or laptop, your financing method can either unlock savings or dig you into debt. Weigh your choices, align them with your financial habits, and pick the one that gives you peace of mind—and better value. Click here to review your options now.

References

• https://rcbccredit.com/blogs/buy-now-pay-later-bnpl-explained-how-it-works-and-benefits
• https://fintechnews.ph/62624/studies/philippines-embraces-bnpl-trend-as-access-to-credit-remains-a-concern/
• https://www.moneysmart.ph/articles/can-buy-now-pay-later-bnpl-help-you-build-a-good-credit-score/
• https://tonikbank.com/blog/shop-smart-choosing-between-buy-now-pay-later-and-credit-cards

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