What is buy now, pay later?

Buy now, pay later (BNPL)

Buy now, pay later splits a purchase into a few payments, often four payments over six weeks. Many plans charge no interest (definition, opens in a new tab) if every payment is on time, but late fees (definition, opens in a new tab) can apply, and longer plans may charge interest. Several plans at once can add up to more than they seem.

Where does this site use it?

• Should I use buy now, pay later?

Related terms

• Installment
• Late fee
• APR (annual percentage rate)
• Interest

General education, not financial advice.