What is BNPL and how does it work?

"Buy now pay later" (BNPL) is a payment option that allows consumers to purchase goods and services without paying the full amount upfront. Instead, they can defer the payment for a period of time, often a few weeks or months, depending on the specific terms of the service.

When using BNPL, the consumer typically makes an initial down payment or pays a fraction of the total amount due at the time of purchase. The remaining balance is then paid off over a set period of time, either in equal installments or in a lump sum at the end of the period. Some BNPL services charge interest or fees, while others offer interest-free financing for a certain period.