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Online shopping has now become the norm, so much so that nearly every brand, whether big or small, has launched its own digital store to cater to those shopping from home. Two platforms leading in the e-commerce industry in the Philippines are Shopee and Lazada. Both platforms offer great deals and discounts to their users, as well as easy payment methods, namely in-house installment plans. Shopee has SPayLater, while Lazada has LazPayLater. What are the differences between these two loan programs?

Application

Only prequalified users are allowed to apply for LazPayLater as of writing. To apply, users need to have an active and verified Lazada Wallet, provide necessary information, and submit any of the acceptable IDs (passport, driver’s license, UMID, and SSS ID).

SPayLater is open to most Shopee users who are at least 21 years old and have a valid government ID.

Verdict: SPayLater

Eligible items

With LazPayLater, most items are eligible for the loan, except for Fine Jewelry and Digital Goods such as mobile load, evoucher, gift cards, and more. Some users may also be able to use the program for Bills Payment.

Similarly, SPayLater is applicable for most products, as long as its shop allows it. But it doesn’t apply for Digital Goods like vouchers, mobile data, mobile load, and bills payment.

Verdict: Tie

Credit limit

LazPayLater can provide you with a credit limit of up to PHP 15,000.

Meanwhile, SPayLater has varying amounts of credit limit. On Reddit, a few users shared their credit limit, ranging from PHP 5,000 to PHP 50,000.

Verdict: SPayLater

Payment terms and interest rates

LazPayLater allows users to shop now and pay at a later date, with or without additional interest depending on their final payment date. If a user chooses to pay up to 45 days later, they can avail LazPayLater’s 0% plan. But if a user chooses to pay up to 12 months, there will be additional interest calculated based on the installment plan selected (3/6/9/12 monthly installment).

SPayLater has a monthly interest charge from 1% to 5% of your total cost. The rate varies depending on your payment history and spending behavior on Shopee.

Verdict: LazPayLater

Processing fee

According to Lazada’s FAQ page, LazPayLater has no charged subscription, processing, or handling fees.

SPayLater has a processing fee between 0% and 2%, depending on how big your loan amount is.

Verdict: LazPayLater

Late payment fee

LazPayLater has a set monthly due date for all users who avail of their loan: every 16th of the month. While there is a two-day grace period, an overdue fee will be charged should you miss your due date. The overdue fee also depends on your loan amount and/or payment terms.

SPayLater has an overdue fee ranging from 2.5% to 5%, applied only to the outstanding amount.

Verdict: Tie

Alternatives

SPayLater is the only shop-now-pay-later program of Shopee. The only alternative for such would be to pay with a credit card.

LazPayLater is only one out of many loan options Lazada. In its program called Lazada Loans, users can choose the third-party partners from which they can avail of a loan for their purchases. In addition to LazPayLater, there are 7 other loan providers, namely BillEase, Paylater, TendoPay, Cashalo, InvestEd, UnaPay, and JuanHand.

Verdict: LazPayLater

Final verdict

Based on these aforementioned factors, the two loan programs seem to be a tie. So at the end of the day, it still depends on you. You should decide which platform to use depending on your own circumstances, your paying capabilities, and whatever you need at the time of purchase.

Happy shopping!

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