Buy now, pay later (BNPL) services allow customers to purchase in installments, sometimes without paying anything upfront. BNPL options are called “instant financing” or “interest-free installments.”
Like any form of credit, BNPL could be a valuable tool if managed well. For example, if you make sure you meet the regular payment installments in full and on time, you can spread the cost of your purchases over weeks or months. This provides consumers with a flexible, interest-free purchasing option. But consumers should be fully aware of the risks of BNPL and how it compares to other forms of credit.
How doe BNPL work?