Buy now, pay later
BNPL enables a purchase with later payment or instalments. The customer’s payment plan and settlement with the merchant are considered separately.
What does buy now, pay later mean?
Buy now, pay later, or BNPL, covers payment and financing offers where customers do not pay the full purchase price at the time of purchase. There may be a later single payment or instalments. Availability, payment schedule and possible costs depend on the specific offering and its terms. Financing one purchase is distinct from repeatedly receiving products through a subscription.
A fictional lighting shop considers an offering where customers pay their instalments to a payment service. The planned order view links provider confirmation to the purchase and keeps settlement with the shop separate from the customer’s payment plan. If part of the purchase amount is to be refunded, the request is linked to the corresponding provider transaction and its confirmed status recorded. How the refund affects remaining customer payments is handled according to the provider’s procedure.
Sources
Related terms
- Pay by invoiceWhen customers pay by invoice, they receive goods or services and pay later by the agreed due date. The invoice and receipt of payment are tracked separately.
- RefundA refund returns all or part of an amount already paid. Returning money and returning goods are separate processes.
- Payment service providerA PSP supports businesses with electronic payments. Payment methods, processing and additional services depend on the offering.
- Digital walletA digital wallet uses saved payment methods or a wallet balance for payment. Device support and the shop integration must work together.
- Recurring paymentRecurring payments charge an authorised payment method at agreed intervals. Amount, payment attempt and service status remain separate.
- Subscription commerceIn subscription commerce, customers receive products or services on a recurring basis. Delivery or usage plans and billing need to match.
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