Buy Now Pay Later

Syllable breakdown

Dictionary meaning

A short-term financing arrangement that allows consumers to purchase goods or services immediately and pay for them over a series of installments, often interest-free if paid within a specified period; popularised by companies like Klarna, Afterpay, and Affirm; abbreviated as BNPL.

Examples

• She used buy now pay later to spread the cost of her new laptop across four monthly payments.
• Regulators are scrutinising buy now pay later services to ensure consumers understand the debt they are taking on.

The term is used identically in American and British English, though British regulators spell 'installment' as 'instalment'

Synonyms: BNPL, installment credit, point-of-sale financing