Buy Now Pay Later (BNPL) is a type of short-term financing allowing consumers to make purchases immediately and pay for them later, normally through a series of instalments. The financing solution is issued for purchases at any Point of Sale (POS), whereas the consumer’s funding approval is instantly performed.

BNPL can also be used on post-purchases, meaning an already completed payment can be retroactively converted into a BNPL product.

Unlike traditional credit card purchases, where consumers are charged interest for every month of carried balance, BNPL financing is normally offered with no or little interest.