Create an account in less than 5 minutes! Sign up now »


A blog for entrepreneurs, innovators and changemakers to learn, scale and grow.

Xendit launches PayLater in the Philippines, enabling businesses to accept cardless credit and installment

Across Southeast Asia, businesses ranging from micro to large enterprises have shifted to eCommerce. In the Philippines, cash-on-delivery (COD) has always been the most preferred payment channel, and understandably so, as customers want assurance about their order being delivered prior to paying. Digital payment channels such as eWallets have also picked up steam due to the pandemic.

For higher ticket items such as smartphones, appliances, jewelry, or airline tickets, the most preferred payment method is credit card. Customers who are heavy on COD and eWallet payments are usually capped in terms of spending power, either limited by the cash they have on hand or the balance in their eWallets. Furthermore, there is apprehension among customers to pay upfront for big purchases. While offering installment via credit cards may work in other developed markets, low credit card penetration in countries like the Philippines makes it even more difficult for businesses to sell high value items online. Hence, lower conversion rates for high value items have been observed due to unavailability of credit options.

PayLater: a cardless credit scheme where customers can buy now and pay later (BNPL), is gaining traction in the Philippines and Southeast Asia, driven by strong eCommerce growth in the region. Additionally, its rise can be attributed to millennials and gen Z who are early to adopt innovative solutions. These two age groups have adequate means to spend, but have limited access to credit via traditional banks due to the Philippines’ lack of a central credit reporting agency. In other regions globally, the massive demand for PayLater has made it more than a “nice-to-have” option, online merchants are now expected to have this in their checkout. We can foresee the same spike in demand here soon.


Xendit is proud to kick off our PayLater offering by collaborating with one of the biggest BNPL solution providers in the Philippines, BillEase, in enabling our merchants to provide flexible financing options to their end customers. PayLater bridges the gap between empowering consumers to get what they need fast, and helping businesses increase their conversion rate and sales volumes.

“We are so excited to launch Xendit PayLater with BillEase, expanding to partners like Cashalo and TendoPay later this year. Not only does PayLater improve the accessibility of the digital ecosystem to those who do not qualify for traditional credit, but it will also give our merchants a competitive advantage in being able to offer financing options previously available only to the largest enterprises. Contributing to financial empowerment and ending predatory lending for Filipinos is key to Xendit’s mission, and we see PayLater as a key step along the way.”

Yang Yang Zhang, Managing Director, Xendit Philippines

How does PayLater Work?

Merchants offering PayLater via Xendit will be able to allow their customers to pay in monthly installments. All the customer needs to do is log-in to their account with the PayLater provider during checkout. The experience is very similar to paying with your online banking or eWallet balance, except it’s a digital credit line.

Getting a credit line from BillEase is fast and easy. Customers can sign up through their mobile app or website and submit preliminary documents such as a valid ID, proof of income, and proof of billing. Approval happens instantly for 70% of applications, else it might require additional review to be confirmed within 1 business day.

Once the purchase is confirmed, Xendit will settle the entire amount of the purchase up front – with no chargeback risk at all. Merchants can rest assured that all of the credit risk will be undertaken by the PayLater partners – so they can focus on building their businesses.

Customer enters Merchant checkout and chooses PayLater Partner
Customer sees available PayLater plans before hitting Continue
Customer is redirected to PayLater Partner’s authorization page to log in
Customer chooses installment plans
Customer confirms purchase by entering OTP after reviewing installment terms
Customer is redirected back to the Merchant’s website upon successful payment

BillEase offers deferred payment on the next payday, as well as monthly installment over a period of 3, 6, 9, or 12 months with monthly interest rates between 0 to 3.49 percent — the cheapest rate in the country.

Getting Started

Want to start offering PayLater options? Sign up for a Xendit account here! For existing Xendit customers, contact us now or send us an email to get started. Learn more about Xendit PayLater product in our documentation or API reference.

Related posts