Buy Now Pay Later (BNPL)

Buy Now Pay Later (BNPL) is a form of point-of-sale financing that allows customers to purchase goods or services immediately but defer the payment to a later date. Usually, the payment is split into several smaller, interest-free installments over a specific period.

BNPL has become increasingly popular in the e-commerce and retail sectors, providing an alternative payment option that can boost conversion rates and increase average order values. Customers appreciate the flexibility and convenience of spreading payments over time, often without needing a traditional credit check.

For merchants, offering BNPL can lead to increased sales and improved customer loyalty. However, it’s also important to consider the fees charged by BNPL providers, which can be higher than those for standard card transactions.

Merchants also need to ensure they clearly communicate the terms of the BNPL arrangement to their customers in order to avoid potential misunderstandings or issues.