Definition
Lay-away is the purchase of an article with a down payment. The store retains the article until full payment is made, often in a series of installments. [1]
Buy Now Pay Later (BNPL) is the purchase of an article through a type of installment loan. The buyer receives the item immediately with little or no initial payment and pays off the balance over several payments, oftentimes four. [2]
References
- American Marketing Association, AMA Dictionary.
- Consumer Financial Protection Bureau, What is a Buy Now, Pay Later (BNPL) loan?, May 21, 2024.