Afterpay is a buy now, pay later (BNPL) service offered by Afterpay Limited, an Australian financial technology company founded in 2014 by Nick Molnar and Anthony Eisen. Afterpay is fully integrated with thousands of brands and millions of products, both online and in-store, in Australia, the United Kingdom, Canada, the United States, and New Zealand. Heres how it works:

• Shop: Customers can shop as usual and choose Afterpay as their payment method at checkout.

• Pay over time: Customers can pay for their items in four equal interest-free instalments over six weeks. The first instalment of 25% is paid at the time of purchase, and the remaining three instalments are automatically deducted from the customers nominated debit or credit card over the following six weeks.

• No fees: There are no interest charges or fees when customers pay on time. However, if they miss a payment, they may incur late fees.

• Manage spending: The Afterpay app makes it easy for customers to manage their spending, build wishlists, and earn rewards. The app also sends reminders and caps late payments to help customers get back on track.

• In-store: Afterpay is available in thousands of stores worldwide, and customers can pay in four interest-free instalments in-store by setting up the digital Afterpay Card in the app and adding it to their Apple Wallet or Google Wallet.

Afterpays income consists of processing fees and late payment fees, and the company bears the risk of default by the customer. While Afterpay does not affect a customers credit score or credit rating, the company takes steps to help ensure responsible spending, including pausing accounts when payments are missed.