Accept Buy Now Pay Later Payments

How BNPL Works for Merchants

When a customer selects BNPL at checkout, the BNPL provider (Klarna, Affirm, Afterpay, or Sezzle) pays you the full transaction amount minus a merchant fee. The BNPL provider then collects installment payments from the customer over 4 to 12 weeks.

You receive your money within 1 to 2 business days, just like a credit card transaction. The customer's credit risk is assumed by the BNPL provider, so there are no chargebacks or collections for you to manage.

Impact on Sales and Conversion

BNPL removes price as a barrier to purchase. A $400 item becomes "4 payments of $100," which feels more affordable to the customer. Research shows that merchants who add BNPL see average order values increase by 30% to 50% and overall conversion rates improve by 20% to 30%.

BNPL is especially effective for retail, fashion, electronics, furniture, and any category where the ticket size exceeds $100. Younger consumers (18 to 40) are the heaviest BNPL users, with over 60% having used a BNPL service.

Merchant Fees for BNPL

BNPL merchant fees are higher than standard credit card processing fees, typically ranging from 3% to 7% per transaction depending on the provider and your volume. However, the increase in average order value and conversion rate more than offsets the higher fee for most merchants.

Some providers offer lower rates for high-volume merchants. Our partner network can negotiate competitive BNPL rates based on your transaction volume and industry.

Getting Started

BNPL integration is available as a checkout option alongside your existing payment gateway. Most BNPL providers offer plugins for major e-commerce platforms. Get a free quote to add BNPL to your checkout.

Frequently Asked Questions

Do I get paid upfront with BNPL?

Yes. The BNPL provider pays you the full transaction amount (minus their fee) within 1-2 business days. The customer's installment payments are collected by the BNPL provider.

How much does BNPL cost merchants?

BNPL merchant fees range from 3% to 7% per transaction. The higher fee is offset by 30-50% higher average order values and 20-30% higher conversion rates.

Which BNPL provider is best for my business?

Klarna, Affirm, and Afterpay are the most popular. The best choice depends on your average ticket size, customer demographics, and e-commerce platform. Our partners help you choose the right fit.

Does BNPL increase chargebacks?

No. BNPL transactions have zero chargebacks for the merchant because the BNPL provider assumes the customer's credit risk. Any payment disputes are handled by the BNPL provider.

Can I offer BNPL for in-person purchases?

Yes. Some BNPL providers support in-person transactions through QR codes or card-present integrations. The customer opens the provider's app, scans a code, and the purchase is split into installments.