What Should a Merchant Know About Buy Now, Pay Later?


In the US that means in the United States, the interest rate of an average credit card is 14.52 %. Many people and even younger people as well are checking and transferring themselves to other payment options. The reason is the piling up of various high costs. And here BNPL comes. BNPL is nothing but just Buy Now and Pay Later. Through this service, customers or younger people are permitted to collect the product or services in advance along with the benefits to pay later through various payment modes, and that too at no interest charge. Be it Buy now pay later electronics or Buy now pay later anything, has become very popular as through BNPL we can purchase lots of products at various price points. This will help to enhance customer loyalty as well as increase sales.

What is Buy Now Pay Later services?

This is a type of financing that the consumers can avail themselves of while purchasing and checking out their products or services. It is a financial technology program which is also called Fintech. Fintech is financial tech program that carries on and solves issues all over the financial industries. BNPL services are very handy and can be used by various people. People had to only do to add their favorite items to their cart by using any website and then fill up the basic needed information about themselves and their location and then choose the payment methods. In the payment methods, there will be a section called traditional options for payment name BNPL service. If you wish to buy now and pay later then you can go for the BNPL service. Through the BNPL method, you will get the benefit of no interest installments which you can be paid over the period.

Following are the various platforms of Buy Now and Pay Later and BNPL provider

BNPL services are provided by various platforms and that too the online industry and their consumers as well. This works just the same but followed the basic rules and policies of their respective platforms.

Affirm: Affirm is the initial platform to launch BNPL services all over the market which was used by many customers and retailers as well. The BNPL service affirms platform has become very popular and make difference is because of their credit facility. That is also the reason that many retailers and customers get attracted to it. Interest rates are also the major factor of its popularity as it wholly depends on the type of credit and its validity as well. Around $17,500 is the all-over purchase of Affirm but obviously, every purchase will differ.

For customers, it can work by going through BNPL services by the way of affirming, filling up the cart with your products, and then proceeding to the checkout option and selecting the BNPL option to pay later.

Retailers can modify their BNPL services by designing their programs in a customized manner. This will not only influence the rate of interest but also extend the term length as well so that every customer can get attracted to it and makes it cost-effective at the same time.

Afterpay: Afterpay is another BNPL provider and is very popular for it. A lot of people are aware of Afterpay BNPL provider because of its unique name and popular logo in the eCommerce market. It comes up with a very unique feature that serves a lot of stores and makes use of the BNPL payment option. Through this, your online store will be known to the various customers when they go through this service.

Customers can make use of this platform by gradually filling up the usual form that will ask for general and basic information about you and your location. After that payment option will be asked by you and there you will see various payment options with the Afterpay option as well. To complete the sale customers can apply to afterpay and can avail of the pay later option.

Retailers will receive the payment after 48 hours from the Afterpay BNPL provider as this whole process is gone through by financial institutions. The payment comprises the purchase price that exceeds applicable fees.

Klarna: Klarna is nothing but just another BNPL provider and they serve their best payment methods in various options so that they can provide their services to their customers in a flexible manner. For their customers, the Klarna BNPL provider consists of three main options.

The one is to use the pay later option simply by purchasing. The consumer will receive their order only when they complete their payment before 30 days of ordering the product and the payment is completed.

The second BNPL option is its installments. Where the price of the order is divided into 3 or 4 equal installments with no interest charge. You have to set your debit card information through which the amount will be automatically deducted from your account in each period. It will ensure that your amount is payable and paid every installment.

Klarna will finance for an item is the last option which means the price of the product can be divided into months wise that can extend to a maximum of 36 months. This comes up with interest charges.

Sezzle: This BNPL provider is not that popular but it can be a better option for customers and retailers. As Sezzle offers BNPL services with unique features. Customers can make use of it by simply adding their products to the cart and filling up the required form by specifying the details about their location before the checkout option, they need to choose Sezzle as a payment option to pay later. Then, you have to complete your dues every two weeks.


To sum up, be it to buy now pay later furniture or anything you can do with the help of the above-mentioned BNPL providers.

Author Bio:

Aline Huseby is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sales financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader.

Apart from this, if you are interested to know more about Benefits of Business Answering Services then visit our Business category.

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