DEFINING FINANCE innovating for you Buy now, pay later (BNPL) If you shop online, you no doubt have seen options like Klarna and Afterpay at checkout. These and others fall under the category of buy now, pay later (BNPL) loans. Many retailers now offer this type of loan to allow buyers to purchase a product and pay for it in installments. The typical BNPL plan is interestfree and requires payment in four installments spread over several weeks. At the point of purchase, buyers fill out a short application and are told at that time if they qualify. But buyer beware: Late payment penalties can be steep and can affect the buyer's credit score, and BNPL loans don't offer the same dispute protections as credit cards if the purchased item turns out to be faulty or a scam. We're solving business challenges through innovation and modernization to create future banking possibilities - so that together, we can reduce the barriers to financial health. jackhenry.com QUICK STAT 60% of consumers reported using a BNPL service as of 2021 Source: C+R Research © 2023 Jack Henry & Associates, Inc.®http://www.jackhenry.com