It’s every shoppers dream to purchase an item and worry about the costs later. Add a no interest factor and you have the infamous BNPL mechanism. Buy Now Pay Later, as the name suggests, is a mechanism utilized by merchant companies that allows customers to purchase items and pay for them later (usually in installments). The practice dates back more than a century, but the best buy now, pay later sites only gained popularity after the pandemic in 2020.

It is quickly rising as a preferred option to shop online. It employs the concept of debt financing to enable customers to purchase what they desire without having to worry about their ability to do so right now.

Although this appears to be the same as the credit card method, there is one important distinction that makes all the difference in the world. Interest. BNPL plans provide an interest-free payment plan (for the majority of items) that may be extended for several months. When using credit cards, the topic of interest is a source of considerable concern. Aside from that, buyers do not need to be concerned about their credit score. The BNPL method does not employ a traditional credit score system. Businesses have developed a mechanism for evaluating purchasers on a different scale from the ones normally used.