In short: "buy now, pay later" (BNPL) is paying for a purchase in a few instalments, often without interest — in substance a loan that can carry a cost.
Simply put: instead of paying at once, you pay in parts. If you keep to the dates, you often pay no interest. But late payment brings fees, and many small instalment plans with different sellers easily pile up in a budget.
Example: shoes for €300 in 4 instalments of €75. If you have three more such purchases at the same time, you pay €300 a month in instalments without feeling that it is debt.
Watch out: "interest-free" does not mean "free". Ask: who is the lender, what are the late fees, does it affect my credit history?
The EU rule: Directive (EU) 2023/2225 brings BNPL within consumer credit rules from 20.11.2026; deferred payment directly from the seller, interest-free and within 50 days of delivery, stays outside (14 days for large online sellers) (Article 2(2)(h)).
Example: Bulgaria — the consumer credit bill (first reading 23.09.2026) also covers BNPL; the final text is pending.
Check in your country — Has your country adopted its law transposing Directive (EU) 2023/2225?
Source: Directive (EU) 2023/2225 — https://eur-lex.europa.eu/eli/dir/2023/2225/oj; Pecuvo Module 21, Chapter 7, and Module 8, Principle 3; CFPB, "Buy Now, Pay Later" (2022) — https://www.consumerfinance.gov/data-research/research-reports/buy-now-pay-later-market-trends-and-consumer-impacts/