Payments language demystified

Buy Now, Pay Later (BNPL) is a flexible payment option that allows consumers to split the cost of a purchase into interest-free or low-interest installments over time. Leading providers like Afterpay, Klarna, and Affirm facilitate BNPL arrangements. This option appeals to customers by improving affordability and cash flow while boosting sales and average order values for merchants. However, merchants pay a fee to BNPL providers for offering this service.