What does the term "Pay Later" refer to in retail processing contexts?

The term "Pay Later" in retail processing contexts refers specifically to a type of payment arrangement where consumers can receive goods or services immediately while deferring the payment to a later date. This approach allows customers to make purchases without the immediate financial burden of payment, thus enabling them to manage their cash flow more effectively. It is particularly popular in e-commerce and point-of-sale transactions, providing flexibility for consumers who may want to try or use a product before fully committing to the payment.

This payment structure contrasts with other models, such as requiring immediate payment at the point of sale, which denies consumers the benefits of deferred payment. It also differs from methods that involve storing funds for future purchases or charge systems that are limited to specific payment types, such as debit cards. Through "Pay Later" options, retailers can enhance customer satisfaction and potentially increase sales by making purchases more accessible.