BUSINESS SPEAK · BNPL
BNPL: Buy now, pay later
A purchase split into payments instead of paid for all at once.
What it means
BNPL lets you take an item now and pay in installments. Some offers charge no interest if paid on time, but fees, late charges or longer-term interest can increase the cost.
Where you’ll meet it
- Common at online checkouts and for everyday purchases. Several small plans can create a large combined payment obligation.
- The cash-price premium is not APR. Check the payment schedule, fees and rules in your agreement; offers and protections vary by country and provider.
Worked example
Scenario: An item costs 800. You pay 200 today and the rest in three installments, with no interest or fees.
- Remaining: 800 − 200 = 600
- Each installment: 600 ÷ 3 = 200
- Total: 200 + 3 × 200 = 800
Answer: Four payments of 200, including today’s payment, cost the same as paying 800 upfront.