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People are missing out on vital protections by using buy now, pay later instead of credit cards to pay for holidays, experts warn.

Buy now, pay later (BNPL) has grown hugely in recent years, and holiday firms and hotel chains have been adding it to the options for payment when booking online, saying it can make trips more attainable.

“Stay now, pay later” is the new slogan from budget hotel chain Travelodge, which recently announced that guests can now pay via Klarna, Clearpay or PayPal – the three companies that dominate the UK BNPL market.

Similarly, a number of travel agents and flight booking sites offer BNPL under the banner of “Fly now pay later”. Customers do not have to pay the full cost of their flights upfront – they can spread the cost over instalments.

And Airbnb announced in late 2023 that it was teaming up with Klarna in the UK so guests could spread the cost of stays over weeks or months. The service is available for reservations priced between £35 and £4,000.

Data issued this week showed that searches on Google for phrases such as “buy now pay later flights” and “buy now pay later hotels” are up sharply on earlier this year, suggesting people are looking for ways to book more flexibly.

BNPL is a form of credit where the cost of what you are buying is typically split into three or four instalments. If you keep to your repayment plan, you will not usually pay interest or charges.

However, there is concern that some people could end up taking out loans they cannot afford to pay back on time, thereby incurring charges, tipping them into debt and damaging their credit score.

Experts warn that using BNPL to pay for holidays or trips also offers fewer consumer protections than more traditional credit.

“While it can be really convenient, it’s worth remembering that it doesn’t come with the same protections as a credit card,” says Matthew Sheeran from Money Wellness, a debt solutions and budgeting website.

If you pay with a credit card, section 75 of the Consumer Credit Act means that if a purchase between £100 and £30,000 goes wrong, the credit card provider is jointly liable with the retailer.

Sheeran says that with BNPL, if there is a problem, “you’ll usually have to chase the retailer or travel provider yourself, which can be stressful and time-consuming. It’s worth checking whether the BNPL provider offers any dispute process, but these aren’t as robust or guaranteed as section 75”.

He adds that while this form of payment is fine for smaller low-risk purchases, for bigger spends, a credit card still offers a safety net.

“BNPL is starting to edge into travel because it offers a way for people to ‘buy now, budget later’,” says Maisie Blewitt at Transfer Travel, an online marketplace where people can buy and sell unused trips.

She says that if you pay using BNPL and the airline or hotel goes bust, for example, your money could be at risk of being lost.

“Refunds can be messy, too, because if a trip is cancelled, instalments can keep coming out of your account until the refund clears, which could take weeks,” she says.

She adds that as this is a developing area of regulation, terms and protections can differ from provider to provider.

“Before using buy now, pay later for a holiday, make sure you carefully read and fully understand the small print,” says Blewitt.

People who use BNPL in this way typically do not have to pay for the trip before they travel, so charges may still be coming out of their account months after they have been away.

There is no universal maximum spending limit, so how much you can borrow depends on which provider you use, your creditworthiness, and how much risk it is willing to take.

“It feels risk-free, and that’s the problem,” says Sebrina McCullough from Money Wellness. “Interest-free offers make it feel like a payment method, not borrowing. But it’s still credit, and if you use it to fund what you can’t afford, the risks grow.”

The UK’s financial regulator, the Financial Conduct Authority, is to start regulating BNPL from July 2026.

This means BNPL loans will become regulated credit agreements and, crucially, people using this form of credit will be covered by section 75. They will also be able to access the Financial Ombudsman Service if they need to make a complaint.

The Co-op has quietly told staff to boost promotion of vapes in an effort to win back customers and sales after a devastating cyber-attack.

The ethical retailer is making vapes more prominent in stores via new​ displays and additional advertising, according to an internal document seen by the Guardian. It is also stocking a bigger range of vapes and nicotine pouches.

The action plan is to tackle a big sales drop after the April hack that resulted in gaps on its shelves.

Called Powering Up: Focus Sprint: Cigs, Tobacco and Vape, the document says: “Sales haven’t recovered compared to pre-cyber.” In a section headed “Why we need to focus on this category?”, it says there are “£1m missing sales per week” and 100,000 fewer transactions.

It states: “We know at least 40% of this is customers forming a new habit, shopping elsewhere as they wouldn’t go without their cigarettes, tobacco or vapes. This means we’ve also lost sales from what would’ve been in their basket.”

The Co-op’s approach to selling vape products in its more than 2,000 grocery stores complies with UK legislation and government guidelines but staff have raised concerns about whether it is contrary to its standing as an “ethical” retailer.

On its website, the Co-op spells out that it puts “principles before profit”. It says: “As well as having clear financial and operational objectives and employing 54,000 people, we’re a recognised leader for our social goals and community-led programmes.”

The activity comes at a time of mounting concern about youth vaping after evidence showing that the numbers of under-18s trying or using vapes has soared in recent years. The brightly coloured packaging and flavours such as bubblegum or candy floss are a significant part of their appeal.

England’s chief medical officer, Prof Chris Whitty, has raised concerns about the marketing of vapes, saying: “If you smoke, vaping is much safer; if you don’t smoke, don’t vape.”

A source told the Guardian that staff had not been told explicitly to sell more vapes but whereas before their presence in store was low-key, there were now ads strategically placed in high-traffic areas and eye-catching display units.

“Before [the hack] even if I didn’t always enjoy work I respected the Co-op,” the source said. “They present the lovely idea of ethical shopping – you might pay a bit more but they are doing things right. This strategy goes against everything we’ve done until now.”

They said the Co-op was known for its ethical business model and that set it apart from other companies. “This recent decision to exploit a known health problem and make a profit goes against the values the Co-op was built on and stands for.”

The government’s tobacco and vapes bill, which is making its way through parliament, will outlaw vape advertising and sponsorship. It will also restrict the flavours, packaging and display of vapes and other nicotine products.

A Co-op spokesperson said: “As a member-owned organisation, our longstanding commitment to ethical values and responsible retailing remains steadfast and at the heart of how we do business.

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“The sophisticated cyber-attack we experienced means we are now even more focused on powering up all aspects of our stores to serve the needs of shoppers.”

They added: “It is important to be clear that the sale of vape products in our stores is fully compliant with all UK legislation and government guidelines, in their recognised role as a successful route to smoking cessation.”

Co-op managers are trying to repair its finances after the cyber incident, which forced it to shut down parts of its IT systems. In a recent business update, the retailer said the fallout pushed it into the red in the first six months of its financial year.

The cyber-attack led to gaps on shelves in its grocery stores, while its more than 800 funeral parlours were forced to return to operating some services via paper-based systems because of having no access to digital services.

The upheaval wiped more than £200m off sales, and the group anticipates the final bill will result in a £120m hit to full-year profits.

The document seen by the Guardian relates to what is a store-wide “Power Up” programme covering all product categories.