M&S Pay: What we know about Marks & Spencer's new buy now, pay later plans

Marks & Spencer is preparing to launch its own flexible credit service, allowing customers to spread the cost of purchases rather than paying the full amount at the checkout.

The retailer revealed plans for M&S Pay during a presentation to investors on 10 November 2026, with the new service expected to launch during its 2027/28 financial year.

It's an interesting development for a brand with such an established high-street reputation, particularly given the debate surrounding buy now, pay later (BNPL) and whether these services encourage people to spend more than they otherwise would.

M&S already offers Klarna on selected online purchases, but its latest announcement goes a step further by introducing a credit proposition under its own brand.

And while the retailer is promising customers greater flexibility, it has also been very open about what it hopes to achieve commercially: more frequent shopping and bigger baskets.

So, how exactly will M&S Pay work, and what should shoppers know before signing up?

What is M&S Pay?

M&S Pay will be a branded flexible-credit service allowing customers to spread the cost of their shopping across instalments.

The company says the service will be integrated into the M&S shopping experience, offering greater choice over how and when customers pay.

It forms part of a wider investment in its digital services, customer loyalty programme and online shopping experience.

However, M&S has not yet confirmed the full terms of its new credit product, including whether all payment options will be interest-free or how many instalments customers will be able to choose.

It's also unclear whether the service will work like a traditional store credit account, a buy now, pay later agreement or a combination of different payment options.

These details will matter when it comes to understanding the true cost of borrowing.

When is M&S Pay launching?

M&S has said it plans to introduce the service during its 2027/28 financial year, which runs into 2028.

An exact launch date has not been announced.

The retailer also hasn't confirmed which customers will be eligible, whether the service will be available in physical stores or which product categories will be included.

We'll update this article when more details are released.

Does Marks & Spencer already offer buy now, pay later?

Yes. M&S introduced Klarna as a payment option for online Fashion, Home and Beauty purchases in October 2026.

The existing service allows eligible shoppers to divide purchases into three interest-free instalments.

For example, a £120 purchase could be split into three payments of £40, with the payment schedule agreed before completing the order.

Klarna carries out affordability and creditworthiness checks, and customers can manage their repayments through its app or website.

You can find the current payment options on the Marks & Spencer website.

M&S Pay will be a separate branded proposition, but it isn't yet clear whether it will eventually sit alongside Klarna or replace some existing payment options.

Why is M&S launching its own flexible credit service?

The commercial reasoning is perhaps the most revealing part of the announcement.

M&S told investors that customers using more of its services tend to shop more frequently and spend more.

The company said that customers who use its Sparks loyalty scheme, app and M&S credit card spend more annually than customers who engage with fewer of those services.

It also outlined the potential revenue opportunity from making shopping more convenient.

According to the company's investor presentation, encouraging just 10% of its customers to make one additional shopping trip a year could generate £39 million in extra revenue.

That helps explain why offering flexible payments is becoming an increasingly important part of retailers' strategies.

If spreading the cost makes a purchase feel more manageable, customers may be more willing to buy something immediately rather than wait until they have enough money available.

From a retailer's perspective, that's an attractive proposition. For customers, the benefits depend on whether they're using the flexibility to manage planned spending or taking on additional financial commitments they hadn't originally intended.

Does M&S Pay show that buy now, pay later is becoming more mainstream?

I think this is one of the most interesting things about the announcement.

Buy now, pay later was once most closely associated with fast fashion websites, younger shoppers and online retailers encouraging customers to spread relatively small purchases.

Now we're seeing established high-street names make flexible credit part of their wider customer offering.

M&S is particularly interesting because it has spent generations building a reputation around quality, reliability and trust, and its decision to develop a branded credit service suggests that flexible payments are becoming an increasingly conventional retail tool.

However, it's worth separating a retailer's enthusiasm for a payment method from whether that method is necessarily right for every customer.

M&S clearly sees a commercial opportunity in helping people spread the cost of purchases. That doesn't automatically mean customers will spend more responsibly simply because the offer comes from a familiar retailer.

In fact, the familiarity of the brand makes it even more important to understand exactly what you're agreeing to.

Is buy now, pay later regulated in the UK?

Yes, many BNPL arrangements are now covered by stronger consumer protections.

On 15 July 2026, the Financial Conduct Authority (FCA) began regulating qualifying third-party deferred payment credit agreements, bringing significant changes to a market that had previously operated with fewer protections.

Under the new rules, affected lenders must carry out proportionate affordability checks, provide clear information about repayments and offer appropriate support to customers experiencing financial difficulties.

Customers also have access to the Financial Ombudsman Service for qualifying complaints.

However, not every product marketed as flexible credit falls under exactly the same rules.

For example, the new deferred payment credit regime generally covers agreements provided by a third-party lender rather than a retailer providing that particular type of credit directly.

Other forms of store credit may be regulated under different consumer credit rules.

Because M&S hasn't confirmed exactly how M&S Pay will operate, it isn't yet possible to say which specific regulatory arrangements will apply.

You can read more about the protections introduced in July through the FCA's buy now, pay later guidance.

Will M&S Pay charge interest?

We don't know yet.

M&S has confirmed that customers will be able to spread purchases across instalments, but it has not published the full details of its proposed repayment options.

That means we can't yet confirm whether M&S Pay will be entirely interest-free, whether longer repayment periods will attract interest or whether additional charges could apply.

This is an important distinction because flexible payment services aren't all the same.

An interest-free arrangement that is repaid on time may allow someone to spread a planned expense without paying more than the original purchase price.

However, products that charge interest or fees can make the same purchase more expensive, particularly if repayments are stretched over a longer period.

Before agreeing to any credit arrangement, it's worth looking at the total amount repayable rather than focusing only on the size of the monthly instalments.

Is buy now, pay later a good way to budget?

It can be useful, but it depends on what you're buying, how the agreement works and whether you can comfortably afford the repayments.

If you already know you need to replace an essential item and have a realistic plan for covering the cost, interest-free instalments might offer some welcome flexibility.

The difficulty comes when the smaller payment amounts make several purchases feel affordable individually, even though the combined repayments put pressure on your finances.

For example, three separate purchases costing £90 each might feel manageable when you're only paying £30 towards each one initially.

But those purchases still add up to £270, and the remaining payments will need to come out of future budgets.

It's particularly worth checking existing credit commitments before taking on another instalment plan, because money you've promised to repay next month isn't available to cover next month's rent, food or other essentials.

And while there are perfectly sensible reasons to spread the cost of something you need, being offered credit at the checkout doesn't mean you have to use it.

What should shoppers check before using M&S Pay?

Until the full terms are announced, there are several important questions worth keeping in mind.

• Interest and charges: Will purchases be interest-free, and could any additional charges apply?

• Repayment schedule: How many payments will be required, and when will they be collected?

• Eligibility: Will customers need to pass affordability or credit checks?

• Credit records: How will borrowing and missed payments be reported to credit reference agencies?

• Returns: What happens to an instalment agreement if you return something you've bought?

• Payment protection: Which consumer credit protections will apply to the new service?

These are questions worth asking of any flexible credit provider, regardless of how familiar or reputable the retailer might be.

M&S Pay FAQs

Is Marks & Spencer launching buy now, pay later?

M&S has announced plans for a branded flexible-credit service called M&S Pay, which will allow customers to spread purchases across instalments. It has not yet confirmed whether the product will operate as conventional BNPL, a store credit account or another form of credit.

When will M&S Pay be available?

The retailer expects to launch M&S Pay during its 2027/28 financial year. No exact date has been confirmed.

Can I use Klarna at Marks & Spencer now?

Yes. Klarna is currently available for eligible Fashion, Home and Beauty purchases through the M&S website and app, allowing shoppers to split payments into three interest-free instalments.

Will M&S Pay be interest-free?

M&S has not announced the full terms of the new service, so it's too early to confirm whether all payments will be interest-free.

Can I use M&S Pay for food shopping?

The company has not yet confirmed which purchases will qualify for M&S Pay, so we don't know whether it will cover food shopping or be limited to other product categories.

Is M&S Pay the same as an M&S credit card?

M&S Pay has been announced as a new flexible-credit proposition, but its exact structure hasn't been confirmed. Customers should not assume it will have the same terms or protections as an existing M&S credit card.

Flexible payments are here to stay, but the details matter

M&S is clearly betting that giving customers more choice over how they pay will encourage them to shop more often, and it isn't difficult to understand why retailers find the idea appealing.

The more interesting question is how customers will respond as flexible credit becomes a routine part of shopping with some of Britain's most familiar high-street names.

For some, the option to spread the cost of a necessary purchase could be genuinely helpful. For others, it may make it easier to commit money they haven't yet earned to purchases they hadn't planned.

There's nothing inherently irresponsible about using credit to manage your spending, just as there's nothing automatically sensible about an offer simply because it comes from a trusted retailer.

The test for M&S Pay will be whether the finished product delivers meaningful flexibility without encouraging customers to take on commitments that make their finances harder to manage.

Until the full terms are available, that's the question worth keeping an eye on.