What it means
A form of credit
BNPL commonly offers short repayment schedules, but product structures differ. The lender’s terms determine repayment dates, interest, fees, eligibility and the consequences of missed payments. An interest-free offer can still create costs or other obligations.
Separate the participants
The merchant’s receipt of funds and the customer’s repayment to a lender are separate processes. A customer choosing to send cryptocurrency does not by itself create a BNPL credit arrangement. Determine who provides credit, who bears repayment risk and how returns or disputes affect the financing.
Related concepts
In practice
A concrete example
A buyer selects a financing plan at checkout and reviews the lender’s repayment schedule separately from the merchant’s delivery terms.
Technical notes & boundaries
Do not assume every BNPL product uses four payments, has no interest or is governed by identical consumer-credit rules. CFPB examples concern the US market.
Go to the source.
Original references used for this definition. Product details and standards can change.