By FintechNews Staf
-Buy now, pay later, or BNPL is a type of installment loan. It divides your purchase into multiple equal payments, with the first due at checkout. The BNPL provider pays the retailer for you. You then agree to pay the BNPL provider back over a few weeks or months, meaning you can spread out your shopping costs.
-These plans can be interest-free, or not.
-Though this type of payment plan has been available for years, it exploded in popularity during the pandemic as more people shifted to online shopping.
-One of the main draws of BNPL is that it’s normally interest and fee-free (unless you don’t make your repayments on time).
-The main players in the BNPL market are Klarna, Clearpay and Laybuy. More recently, PayPal launched its ‘Pay in 3’ product, while Monzo became the first major bank to join the market.