Revolut is rolling out a new "buy now, pay later" service across Europe, starting in Ireland.

The digital bank, which has 1.9 million customers here, said the new feature will allow consumers to spread the cost of purchases across three instalments.

The feature can be used in store and online, for purchases up to €499.

From this week, Revolut said some of its customers in Ireland will be eligible for early access to its new Pay Later service, before the gradual roll out of the product to all of its customers in Ireland.

Revolut said it will look to offer the product in additional markets from the end of 2022 and beyond, with Poland and Romania to be the next markets gaining access to the product later this year.

Fully integrated within the Revolut app, once approved, customers can activate Pay Later on-the-go with one tap in their Revolut app.

Customers can view their Pay Later balance in the Cards section and in the Pay Later hub.

If a customer would like to repay the instalments early, there are no additional fees to do so, the digital bank said.

Revolut said its new product also features built-in safeguards to check that users can afford their Pay Later limit.

It said that unlike other pay later providers, Revolut is able to offer a more "robust" assessment as it approves the credit limit before the transaction rather than offering an instalments payment method at the point of sale.

The buy now pay later market in Europe is set to grow to £680 billion over the next five years.

Revolut said its new offer meets the growing consumer demand for this personal finance tool, while offering it in a responsible way, with a heavy emphasis on customer affordability and suitability.

Joe Heneghan, CEO of Revolut Europe, said that Pay Later is an exciting and fast-growing area of personal finance and consumer spending.

"Revolut Pay Later gives our customers more control and flexibility over their personal finances, in a responsible way, by enabling them to spread the cost of purchases over three instalments," Mr Heneghan said.

"This encourages people to pay within two months, rather than calling on overdrafts and credit cards which don't carry the same emphasis on quickly paying back the amount borrowed," he added.