Think of Afterpay as layaway with benefits.
If you remember layaway plans, you know it’s an old retail custom in which you make installment payments over a period of time to buy a product or service you can’t afford upfront.
However, services like Afterpay now let you keep the merchandise immediately after you make the first payment. You pay off the balance in three equal installments, but there’s no more waiting until the item is paid off to get you purchase.
What Is Afterpay?
Buy-now-pay-later services like Afterpay are also known as point-of-sale lenders. Buyers select Afterpay at the point of purchase and can get approval immediately without a credit check. Once approved, the buyer makes an initial payment and is enrolled in a six-week payment plan.
Users don’t pay fees or interest on their purchase.