Buy now, pay later (BNPL) is a short-term financing strategy that allows consumers to purchase items and pay for them at a future date (often interest-free). Sometimes referred to as ‘point of sale installment loans,’ BNPL is becoming an increasingly popular payment option, especially for ecommerce retailers. With BNPL, customers typically make an upfront payment toward the purchase, and then take care of their balance in a series of weekly or monthly payments.