SPayLater vs. LazPayLater: Which One is Better?

These days, more and more people choose to shop online. One reason for this is the proliferation of advanced technologies that have made internet shopping a breeze, especially during the types of holidays in the Philippines. Furthermore, it provides access to more items and services than a single location could, including some that may not be carried by physical stores in the immediate area.

In fact, 54% of Filipino respondents to a Rakuten Insight poll about online shopping habits in June 2022 said they planned to keep making purchases over the internet in the comforts of their house and lot in the Philippines since it was more convenient than visiting a store.

Buy Now Pay Later Schemes in PH Online Shopping

The term "Buy Now, Pay Later" (or "BNPL") refers to a kind of installment loan that lets online consumers put off paying for a purchase indefinitely. Using this method of payment allows you to make an instant purchase even if you are temporarily strapped for cash.

To put it another way, BNPL is a loan that may be used as an alternative to a credit card while making purchases online, whether they are your daily essentials, gadgets, appliances, furniture, or even your favorite famous Filipino snacks. Two of the most popular BNPL payment method in the Philippines is the SPayLater and LazPayLater.

What is SPayLater?

SPayLater is a digital payment platform from Shopee that gives its customers more leeway in how and when they make payments. The service provides customers with the option to make immediate purchases while deferring payment until a later date. There are a number of different payment plans available to users, starting at just one month and going up to a full year.

What is LazPayLater?

Customers in the Philippines may use LazPayLater, a credit payment option, to buy on Lazada without having to pay for their purchases immediately. Eligible consumers have the option to make manageable monthly payments toward the purchase price of their purchases. Customers may make a purchase immediately and schedule a payment at a time that is convenient for them with LazPayLater.

Comparing SPayLater and LazPayLater

In the Philippines, Shopee and Lazada are the most popular online marketplaces. Great savings and discounts are available to customers of both services, as are convenient payment options, including in-house installment plans and credit card processing.

Both Shopee and Lazada provide after-the-fact payment options; Shopee offers SPayLater, while Lazada offers LazPayLater. It's important to note that both of these BNPL programs are regulated by the Securities and Exchange Commission. Let's compare and contrast these two loan options to see what fits your needs best.

A. Application requirements

For SPayLater

To utilize SPayLater, all you need is a valid IDs and to be at least 21 years old. You can also check out the SPayLater page to learn more about their application process.

For LazPayLater

As of this writing, LazPayLater applications are only being accepted by users who have already been pre-qualified. An applicant must have a valid government-issued ID and a Lazada Wallet account in order to be considered. Other forms of ID such as passport, driver's license, UMID, and SSS ID may also be submitted.

B. Credit limit

For SPayLater

There is a wide range of available credit on SPayLater based on your payment history and spending behavior. As a matter of fact, a small number of Redditors have revealed their credit limits, which range from PHP 5,000 to PHP 50,000.

For LazPayLater

There is a maximum of PHP 15,000 that you may get with the LazPayLater credit limit.

C. Payment terms and interest rates

For SPayLater

Interest rate on purchases made via SPayLater ranges from 1% to 5% each month. The interest which you will pay SpayLater bills is different for each user, based on their individual payment and shopping habits.

For LazPayLater

LazPayLater is a service that lets customers make purchases immediately but pay for them at a later date, with or without interest. There is a 0% option available via Lazada loan for customers who would want to make their payments up to 45 days later. On the other hand, if a customer decides to pay over a longer period of time than the first 3 months, interest will be added at a specific rate per month, depending on your chosen monthly installments that vary from 3, 6, 9, or 12 months.

Processing fee

For SPayLater

The processing fee charged by Shopee SPayLater ranges from 0% to 2% of the total loan amount.

For LazPayLater

LazPayLater, as stated on Lazada's frequently asked questions website, does not need a membership and does not cost anything to process or handle payments.

Eligible items

For SPayLater

As long as the store supports SPayLater, you may use it to pay for almost anything you want from your Shopee purhcases. This is not the case, however, for digital goods such as gift cards, mobile data, mobile load, and bills payment.

For LazPayLater

Except for Fine Jewelry and Digital Goods like mobile phones, e-vouchers, gift cards, and more, you may get a loan for almost anything through LazPayLater. Some users may even be able to utilize it for paying bills.

Late payment fee

For SPayLater

The late cost for SPayLater ranges from 2.5% to 5% of the total amount still owed.

For LazPayLater

The 16th of every month is the due date for loan payments made via LazPayLater. There's a 2-day grace period, but after that, it's late, and you'll have to pay the penalty. Your loan amount and/or payment conditions will determine how much would be your late fee.

Partner Alternatives

For SPayLater

Shopee solely offers the SPayLater shopping now, pay later service. Therefore, paying using a credit card is the only other option for the Shopee App.

For LazPayLater

In addition to LazPayLater, Lazada also offers a number of other convenient financing solutions. With Lazada Loans, customers may pick and choose which financing partners they work with to pay for their purchases. There are 7 additional loan companies besides LazPayLater such as BillEase, Cashalo, InvestEd, JuanHand, Paylater, TendoPay, and UnaPay.

Which One is Better?

When considering these criteria, it seems that the two loan options are equally competitive. And so, ultimately, it's up to you. Which platform you choose to make a purchase should be determined by factors such as your financial situation, your ability to make a payment, and your needs at the time of the transaction.

It's no secret that doing business online has become integral to the daily routines of a large percentage of the population. People can browse products they're interested in without having to deal with overbearing salesmen, or even have the comfort of ordering their lunch foods in Philippines from the convenience of their own homes, thanks to the rise of online shopping.

Loan providers, whether it would Lazada Loans or the SPayLater Bill, can help you to ease the burden of your online shopping.

Meanwhile, you can now also shop for your affordable house and lot investment from both Lazada and Shopee.

Lumina Homes, the leading economic housing segment from Vista Land, is the first developer in the Philippines that partnered with e-commerce platforms to offer its affordable house and lot for sale.

Visit our official stores from Lazada and Shopee to get your dream home now!