Glossary
Buy now, pay later (BNPL)
A payment option that splits a purchase into instalments, usually without interest to the shopper.
With BNPL, the shopper pays part of the price at checkout, or nothing, and the rest over a few weeks or months. The BNPL provider pays the merchant upfront and takes on the credit risk.
Merchants typically pay a higher fee than for cards in exchange for higher average order values. Availability and regulation differ considerably by country.