Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them over time. BNPL is also commonly known as point of sale installment loan (POS), which does not receive interest. Using BNPL financing can be convenient, but there are some potential pitfalls to consider as well. Consumers can make purchases using BNPL services offered by traditional and online retailers or through third-party offerings.