What is 'buy now pay later'? You may have seen this term crop up in the last year or so as a way to describe an increasing trend of buying items and paying for them in installments. It's been used for big-ticket purchases, like furniture or cars, and smaller ones, like clothes or groceries.

Looking to buy that new dress or gadget but don't have the cash on hand? Relax, there's a solution. Just enter into a buy now pay later agreement, and you can spread the cost out over time. It's like getting an interest-free loan!

The rise in popularity for these companies can be attributed to their outstanding customer service and ease of use. That's why more people are signing on with Affirm or Afterpay, two of the most famous BNPL providers.

The number of people using BNPL providers is growing significantly. Affirm's active users had a 248% increase from 2019 to 2021, and Afterpay had a 483% jump. So Buy Now Pay Later has got wind, and buyers are rushing to sign up.

But what exactly does it mean? And more importantly, is it a good deal for you? Let's take a closer look.