Buy Now, Pay Later (BNPL): The Same, But Different

Buy now, pay later (BNPL) is a loose term that describes a form of installment loan whereby originators pay equal installments back to the lender over a pre-determined length of time. Repayment plans range from two installments to multiple months of repayment. However, one of the most popular is the “pay in four” plan, which many associate with the “true” form of BNPL. BNPL has gained popularity worldwide and is considered an essential payment method.

The market is changing, and BNPL vendors are increasingly offering physical card products to accompany their service offerings. Carded BNPL is less of a threat than it may seem, and credit card issuers are well prepared to handle this development.