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Buy now, pay later: how BNPL works for shoppers and sellers

By SendPay Business · · 2 min read

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A shop that takes payments
  1. Customers pick what they want
  2. They pay by card at checkout
  3. The order lands with you

Buy now, pay later (BNPL) lets a shopper split a purchase into smaller payments, often interest-free if they pay on time. The seller is usually paid in full up front by the BNPL provider, which takes a fee from the seller.

How BNPL works

  • The shopper picks BNPL at checkout.
  • The provider runs a quick check and approves or declines.
  • The seller is paid, minus the provider's fee.
  • The shopper repays the provider in instalments.
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Who pays

For many BNPL plans, the seller pays the main cost through a fee on each sale. Shoppers can face late fees or interest on some plans if they miss payments.

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The risks for shoppers

BNPL makes spending feel smaller, and several plans at once can add up fast. Missed payments can affect a credit file, so it pays to treat BNPL like any other borrowing.

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Where SendPay fits

SendPay does not offer buy now, pay later or lending. SendPay platforms include payment links, invoicing and subscriptions under your own brand, powered by licensed partners, so customers can pay in full or on a regular plan you set.

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How it works

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  1. Name it and pick your colours
  2. Choose what it does
  3. Launch when you are ready

Why sign up

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  • A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
  • Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
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  • Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.

Questions people ask

How do I split a price into instalments?

Plan a deposit and payments with every date.

Payment plan calculator →
What is recurring billing?

Charging customers on a schedule.

What is recurring billing? →
What are payment links?

Getting paid with a simple link.

Payment links in the UK →
What is an interchange fee?

The fee behind every card payment.

What is an interchange fee? →

Read next

Spotted a mistake or something out of date? and we'll fix it. How our guides are made

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.