What is Buy Now Pay Later?
Buy Now Pay Later refers to a consumer credit payment method which allows shoppers to purchase goods immediately and pay for them through scheduled instalments over time.
How does BNPL work?
At checkout, a customer selects a BNPL option offered by a payment provider. The provider approves the purchase and pays the merchant upfront. The customer then repays the provider through scheduled instalments.
What are common BNPL providers?
Examples include Klarna, Afterpay, Affirm, and PayPal Pay Later.
Why do consumers use BNPL?
Consumers use BNPL to spread the cost of purchases across multiple payments. Many services offer short term instalment plans with no interest when payments occur on schedule.
Are BNPL services regulated?
Regulation varies by country. Some regulators treat BNPL as consumer credit and require providers to follow lending rules, conduct affordability checks, and provide transparency regarding fees.