Is Buy Now, Pay Later too good to be true?

If you’ve done any online shopping recently you’re probably familiar with the option to “buy now and pay later.” This option to split your payment up into installments has exploded in popularity recently and is now a fixture alongside credit cards at checkout time when you’re shopping online. Affirm, Klarna, Afterpay, Sezzle, Zip, and even Apple all offer some form of buy now, pay later.

So how does “Buy Now, Pay Later” (often abbreviated as BNPL) work exactly? This is how.