Buy now pay later (BNPL) is a payment option that lets a customer split a purchase into several instalments, often interest-free if paid on time. The provider pays the retailer up front, less a fee, and collects the instalments from the customer.
Customers choose BNPL at checkout, online or in store, and are approved by the provider in moments. The retailer receives settlement from the provider regardless of how the customer repays.
Retailers offer it because it can lift conversion and average order value, especially on higher-priced items. The cost is a merchant fee that is usually higher than a standard card fee.
Before adding BNPL, compare fees, settlement times and how refunds are handled, and make sure it is integrated with the POS so reconciliation stays simple. Surcharging rules for these payments are worth checking.