Buy Now Pay Later Pay in 3: What Is It and How Does It Work?

These days, there are many ways to make a purchase, and Buy Now Pay Later (BNPL) is one of them.
BNPL offers consumers the opportunity to do exactly that: buy something and pay the full cost later. You’ll generally need to make a payment upfront, and then the rest either in one go or in several instalments over time.
BNPL comes in a variety of forms with various repayment options. In this guide, thimbl explores the BNPL method, Pay in 3.

What is Pay in 3?

Pay in 3 is a type of BNPL service.
As the name suggests, it allows you to pay for a purchase in three equal instalments, with the first being made at the time of the transaction.

How does Pay in 3 work?

If available and supported by the retailer, select the option to pay using a BNPL provider and choose Pay in 3. The provider will walk you through the next steps, including eligibility requirements and any credit checks.

If approved, you could expect Pay in 3 to work a little like this:

1. You make a £75 purchase and pay £25 upfront.
2. In a month, you’ll pay a further £25. Payments are usually taken automatically using your card details.
3. Two months after the purchase, you’ll make your final payment of £25.

Please note that the above example is for illustrative purposes only, and the specifics of Pay in 3 may vary depending on the provider.

Pay in 3 apps: which providers offer Pay in 3?

Looking for Pay in 3 companies? Pay in 3 is a BNPL service currently offered by PayPal and Klarna.
In the table below, we’ve included some key information on each provider and the Pay in 3 service they offer.

Pay in 3 UK: When you might consider using Pay in 3

If you’re looking to spread the cost of a large purchase, you might consider using Pay in 3, although it’s important to explore all the options that could be available to you before you make a decision. We’ll explore alternatives to BNPL Pay in 3 further down the page.

Is Pay in 3 a good idea? Things to be aware of before using Pay in 3

• As of February 2026, not all BNPL services are authorised and regulated by the FCA – however, this is set to change in July 2026.
• Not all retailers will support BNPL or the specific BNPL service you would like to use.
• You should never spend money that you don’t need to or can’t afford to repay.
• Your repayments must be made in full and on time.
• If you make a late repayment, you could be charged a fee.
• Depending on the BNPL provider, your activity could be reported to the CRAs, and a late or missed repayment could have a negative effect on your credit score.
• If you think you may miss an upcoming payment, it’s important to let your provider know as soon as possible. There may be things they can suggest to help reduce some of the financial pressure you’re facing.

Pay in 3 for bad credit

If you’ve thought about searching for ‘Pay in 3 no credit check’, you might be concerned that your credit score could affect your chances of being approved.

You could use Pay in 3, even if your credit score is looking worse for wear; however, the decision will lie with the provider and will typically be based on the outcome of the soft search eligibility check they may carry out.
For existing Klarna and PayPal customers, the decision whether to approve you for Pay in 3 could also be based on how you’ve managed similar BNPL commitments in the past, and whether your account is in good standing.

Does Pay in 3 affect your credit score?

It could do – but this will depend on whether:

• The provider carries out a full creditworthiness assessment, including a hard credit search, when you make an application; and/or
• The provider reports your repayment activity to the CRAs.

Is Pay in 3 good for your credit score?

As discussed above, some Pay in 3 providers may report to the CRAs, while others may not. If the provider does not report to the CRAs, your Pay in 3 activity will not affect your credit score either way.
If the provider reports your repayment activity and you’ve made your repayments on time and in full each instalment, it’s possible that it could lead to an increase in your credit score, provided any other credit commitments and bills have also been handled responsibly.

Can I use Pay in 3 anywhere?

You may only use the BNPL service Pay in 3 through retailers that accept the provider you’re hoping to use.
You can find out which companies support BNPL with Klarna here, and PayPal here.

Can I buy now, pay in 30 days?

When using Pay in 3, you’ll usually be required to make your first payment at the time of purchase, with the next payment due in 30 days, and the final payment to be made 60 days after purchase.

As long as you’ve covered any initial payment required at the time of purchase, you could repay the entire amount that you owe in 30 days, if you can afford to.
Before you decide whether to pay in 30 days, it’s a good idea to check whether the provider charges any early repayment fees.

Alternatives to BNPL Pay in 3

• Save up
  We appreciate that this method won’t be an option in every instance; if you’re thinking about using Pay in 3 to cover an essential expense, such as school uniform or a replacement washing machine, then you might not have the time to save up.
  However, if the expense could wait a couple of weeks or months, you may choose to take a step back and use your own money rather than entering into a credit agreement.


• Short-term personal loan
  Wondering about alternatives to BNPL Pay in 3? You might be interested in researching personal loans.
  A short-term personal loan is designed to plug a financial emergency when your income or savings fall short. If approved, the money will be sent to your account, and you’ll then repay the loan in monthly instalments, which will include interest.
  While you will be charged interest to take out a loan, the sector is regulated by the FCA. You should always ensure that the company you’re applying with is authorised and regulated by the FCA – you can do this by using the FCA Firm Checker tool.


• Have you thought about searching for a credit card?
  If you’re hoping to spread the cost of a necessary purchase, you may wish to do some research into a 0% purchase credit card, which offers a set period of no-interest spending. With this type of credit card, it’s important to be aware that once the 0% interest period comes to an end, any balance leftover or new purchases made will be charged at the credit card’s standard rate.


• Did you know that you could still get a credit card, even if you have bad credit?
  Some credit cards, such as credit builder credit cards, could be suitable for people with a history of bad credit, especially those hoping to work towards a healthier credit position. Credit builder credit cards typically come with a manageable credit limit, and when used alongside other credit-building methods, such as paying your bills on time and checking your credit report for errors, could help you improve your credit position.

The thimbl credit Builder Credit Card

The thimbl Credit Builder Credit Card comes with a personalised starting credit limit between £200 and £2,000.
Here’s how it works:

• Use your thimbl Credit Builder Credit Card to make a necessary purchase that you can afford to repay.


• Make at least the minimum repayment amount each month. Where possible, you should try to make more than the minimum repayment amount, and if you clear your balance in full every month, you won’t be charged interest.


• Your repayment habits will be reported to the CRAs, and with positive use, you could notice an improvement in your credit score over time.

Check your eligibility for the thimbl Credit Builder Credit Card in just 60 seconds

You can check your eligibility for a thimbl credit card if you:

• Are between the ages of 18 and 70;
• Are a UK resident with at least 1 year's UK address history;
• Have a monthly net income of at least £800;
• Have an active credit account that has been open for a minimum of 12 months; and
• Do not already hold a Zable credit card.

thimbl is a credit broker. The thimbl credit card is powered by Zable, a trading name of Lendable Ltd.
Lendable Ltd is unable to consider applications from anyone who has declared bankruptcy or is in an Individual Voluntary Arrangement (IVA).

Are you struggling with money?

If you’re concerned about your financial situation or level of debt, please know that you don’t have to face this alone.
There are several organisations in the UK that offer free, confidential and impartial financial advice. These include: StepChange, MoneyHelper, Citizens Advice, and National Debtline.