Plus, two financial planners share their takes on its pros and cons. Deanne Gage Updated (Photo: Afterpay) As you check out your online retail purchases this holiday season, you may have noticed an Afterpay icon pop up under the payment options. So what is it—and is this new payment service worth considering? Read on for the lowdown. What is Afterpay? Afterpay is a service that allows you to instantly buy a product online and pay by installments. We’re not talking big-ticket furniture but lower-priced items like clothes and cosmetics. You immediately pay your first installment (25 percent of the purchase price) and the product ships to your home. You then repay the remaining amount over three more installments in consecutive two-week periods. As an example, if you purchased a $100 dress using Afterpay, you’d fork over $25 right away and make three additional payments of $25 via your existing credit card or direct debit.