Buy now pay later vs buy now pay together: what's the difference?
Buy now pay later vs buy now pay together comes down to who pays. Buy now, pay later (BNPL) lets one person get an order now and pay it off in instalments, using credit from a provider such as Afterpay, Klarna or Zip. Buy now, pay together lets a group pay for one order at checkout, with each person chipping in directly. Paysquad itself doesn’t offer lending.
We’re on a mission to help people do more together than they ever could solo. Concert tickets with the crew. A birthday gift for a mate.
When something’s too much for one person, or just a little outside your range, you can stretch for it together with your squad.
What is buy now pay together?
Buy now, pay together lets a group pay for one order at checkout. One person shares a link and everyone chips in, instead of one person paying for it all and chasing the money afterwards.
It isn’t buy now, pay later, and there are no instalments. Each person pays only for their contribution, and the merchant gets one paid order.
Group payments already happen everywhere. Friends go halves on gifts. Families pool money for the big stuff. Mates book a trip and sort it out later.
The pain is collecting the money afterwards: one person pays, then spends weeks sending reminders and checking their bank account.
Paysquad brings group payments to the checkout, where they belong. Getting people involved is as easy as sharing a link.
Want the full picture? Here’s what is Paysquad.
Buy now pay later vs buy now pay together at a glance
| Buy now, pay later | Buy now, pay together | |
|---|---|---|
| Who pays | One person | The squad |
| When | In instalments over several weeks | Everyone chips in before the deadline |
| Is it credit? | Yes, from the BNPL provider | No. Paysquad itself doesn’t offer lending |
| How each person pays | The account holder repays the provider | Each person pays their part by card, Apple Pay or Google Pay |
| Best for | One person spreading their own purchase over time | Gifts, tickets, trips and big items bought with or for others |
| How the merchant gets paid | Through the BNPL provider | One paid order, to the merchant’s own merchant account |
How buy now pay later works
The best-known BNPL plans are “pay in 4”. With Afterpay or Klarna, the cost is split into four instalments: the first at checkout or when the order ships, then the rest about every two weeks. In Australia, Zip also lets you repay over time, weekly, fortnightly or monthly. You get the order now and pay it off over the following weeks.
The plan belongs to one account holder. That person signs up with the provider, usually with a credit check, and agrees to the repayments. The provider pays the merchant.
BNPL is regulated as consumer credit. In Australia it falls under the National Consumer Credit Protection Act, overseen by ASIC. In New Zealand it falls under the Credit Contracts and Consumer Finance Act (CCCFA), regulated by the Financial Markets Authority.
For lots of people, BNPL is a familiar way to pay. It just solves a different problem. It spreads one person’s purchase across time, not across people.
Buying with friends? Split the cost across people instead of instalments
Looking at alternatives to Afterpay for a group buy? There’s another way. Instead of splitting the cost over time, you can split it across the group at checkout.
Think about the moments when you’re never really buying alone:
- Concert tickets. Six of you want to go, and somebody has to grab the tickets before they sell out.
- A trip away. The accommodation’s booked as one order, but four people are staying.
- A group gift. A milestone birthday, a farewell or a wedding, where everyone wants to go in on something great.
Here’s the annoying part. Usually one person fronts the full cost of the order, then chases everyone afterwards. “Has everyone paid?” messages. Screenshots of bank transfers. The one friend who’ll “sort it Friday”. BNPL doesn’t fix that, because the plan is still in one person’s name.
With buy now, pay together, the squad chips in at checkout through one link, instead of one person paying and chasing the rest for weeks.
It works especially well for gifts. We’ve seen people turn their whole gift registry into a Paysquad that friends and family can contribute towards. It’s a way to get the bigger, more expensive items without carrying the full cost yourself.
At Baby Bunting, squads go in together on prams, car seats and nursery furniture: the big-ticket things a parent-to-be really needs, and that a group can easily get over the line together.
How buy now pay together works with Paysquad
Here’s how a Paysquad comes together:
- Start a Paysquad at checkout. Whoever’s organising becomes the squad leader. They add the items to the cart and choose Paysquad as the way to pay.
- Set the deadline. Where the squad leader sets it, they pick any day and closing time up to five days away.
- Share the link. The squad leader shares one link with the squad.
- Everyone chips in. Each person pays their part as a guest, with no account or app. Here’s how to chip in.
- The order goes through. The merchant gets one paid order and handles it from there, like any other order.
Squads come together in all sorts of ways. Birthdays, baby showers, get-togethers, trips away. Some squads drop the link in the group chat. Some email each person directly. And some are in the same room, passing the laptop around and all chipping in on the one order.
If a merchant issues a refund, it’s paid back across the squad, in proportion to what each person chipped in.
Which should you use?
They do different jobs, so it comes down to who’s buying.
- Paying for something on your own over time? That’s what BNPL is built for.
- Buying with or for other people? Buy now, pay together is built for that.
- Organising a gift, a group booking or tickets for the crew? Start a Paysquad and share the link.
Many stores that offer Paysquad also offer BNPL, so you can pick whichever fits the purchase.
For merchants: add Paysquad alongside buy now pay later
BNPL helps one customer spread their own purchase over time. Paysquad helps a group buy together. They do different jobs, so they sit side by side at checkout.
Paysquad is live in five countries across 30 stores. Flagship retailers like Baby Bunting offer it for gift registries, prams and nursery furniture. Sports teams like the Parramatta Eels offer it for merchandise, memberships and hospitality. You can even buy flights through Laters.com.
With Paysquad, you get one paid order, paid to your own merchant account on your payout schedule. And every Paysquad puts your brand in front of the whole squad. On average that’s five people chipping in, and we’ve even seen mega squads of 20+. That’s all reach for your brand.
See Paysquad for merchants, or add Paysquad to your checkout. More on group payments at checkout and group ticket payments.
FAQ
Is Paysquad buy now, pay later?
No. Paysquad is buy now, pay together, and Paysquad itself doesn’t offer lending. Each person pays their contribution by card, Apple Pay or Google Pay.
What’s the difference between Afterpay and Paysquad?
Afterpay lets one person spread a purchase over instalments, using credit from Afterpay. Paysquad lets a group pay for one order together at checkout, with each person chipping in directly.
Can I split an Afterpay purchase with friends?
Not really. An Afterpay order sits with one account holder, who owes the instalments. Buy now, pay together is built for groups, so everyone chips in towards the order through Paysquad.
What can I use instead of Afterpay when buying with friends?
If you’re looking at alternatives to Afterpay for a group purchase, try buy now, pay together. With Paysquad, the squad leader starts a Paysquad at checkout, shares the link, and the squad chips in before the deadline.
Is buy now, pay together a loan?
No. Paysquad itself doesn’t offer lending. Each person pays their own part at checkout.
Does Paysquad affect my credit score?
No. Chipping in to a Paysquad has no effect on your credit score.
Do my friends need an account to chip in?
No. Everyone can chip in as a guest, with no account or app. They just open the link and pay their part.
Accurate when published on 4 November 2026. Store availability and features can change, so check the Help Centre for the latest.
