Definition
Buy Now, Pay Later – A short-term consumer credit product that lets a shopper split a purchase into a small number of installments (often interest-free to the customer), typically underwritten instantly at checkout using the platform's own transaction data rather than a traditional credit-bureau application. For a payments company, BNPL is usually originated in partnership with a bank or NBFC» that carries the actual credit risk, letting the platform earn a fee or revenue share without holding the loan on its own balance sheet. Found In: Operating metrics disclosure, Notes to Financial Statements (lending partnerships)