Definition · Glossary
Buy now, pay later (BNPL)
Personal LoansDebt & Debt Management
In plain English
Buy now, pay later products allow you to purchase goods and spread the cost, sometimes without interest, over a short period. They are increasingly regulated in the UK. Missed payments can result in charges and may affect your credit file.
★
Example
Using a BNPL service to buy a £300 item and paying in three monthly instalments of £100.
Don't get caught out
Common misunderstandings
- BNPL products that charge no interest are not free — missed payments often incur charges and can be referred to debt collectors.