Privy Glossary | Buy Now Pay Later

Definition

BNPL allows customers to split purchases into multiple interest-free or low-interest payments.

Detailed Explanation

BNPL providers pay the merchant upfront while collecting installments from the customer. This increases affordability for shoppers and often raises conversion rates and AOV.

Why It Matters in eCommerce

• Increases conversion rates
• Raises average order value
• Appeals to younger shoppers

Example

A $200 jacket is paid in four $50 installments using Klarna.

Related Terms

Payment Gateway, Checkout Optimization, AOV