Buy now, pay later: how BNPL works for shoppers and sellers
By SendPay Business · · 2 min read
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.
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.
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.
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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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. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.