Buy now, pay later
The customer pays in instalments. You receive the full amount immediately and carry no risk.
BNPL appears as one more method at checkout. Approval takes seconds and is made by the partner, who carries the credit risk.
The effect shows in average order value: a customer hesitating over the more expensive option picks it more readily when they see a monthly instalment instead of the full sum.
What you get
Instalments for the buyer
Split into 3, 6 or more monthly payments.
Full amount for you
You are paid at once, as with a normal payment.
No credit risk
The BNPL partner carries the risk, not you.
Approval in seconds
The decision comes at checkout.
Higher average order
Customers choose the more expensive option more often.
Names buyers know
Klarna and other providers customers already trust.
How it works
Selection
The customer picks deferred payment at checkout.
Approval
The partner checks and answers within seconds.
Fulfilment
You ship the order as usual.
Payment
You receive the full amount; the customer pays in instalments.
Why instalments lift the average order
The mechanism is simple and well measured across the sector: when the price is split into four instalments, the customer compares the instalment, not the total. A 400 euro purchase reads as one hundred euro now. That moves the decision from can I afford this to is it worth it, and usually lifts both conversion and average order value.
The effect is strongest on mid-priced goods, where the price is high enough to stop an impulse but not so high that it calls for real credit. Furniture, appliances, bicycles, tyres, treatments, courses.
The risk stays with the instalment provider, not with you. You receive the full amount less the agreed fee whether or not the customer keeps up with their instalments. That is exactly why the BNPL fee is higher than the card fee: the credit risk is packed into it.
What to show, and where
The most common mistake is letting BNPL appear only at the last step of checkout. There it rescues some abandoned baskets but does not influence the buying decision, because the customer has already decided. Its place is on the product page, under the price, as a second line: the full amount with the instalment beside it.
The second mistake is a vague message. Instalments available says nothing. 4 payments of 25 euro, no interest says everything. If there is interest or a fee for the customer, it has to be visible before the choice, not after it.
Third, the provider has to be recognisable to the local customer. An unfamiliar logo on the payment screen does the opposite of what you put it there for.
Obligations that are not optional
Instalment payment is a financial service and advertising it is regulated. Terms must be complete and readable, not in small print below the fold. If there is interest, the annual percentage rate is stated. If there is a late fee, it is disclosed up front.
When goods are returned, the instalment agreement goes with them. The panel passes the return to the provider and the schedule is either cancelled or recalculated, depending on whether the return was full or partial. Do not leave this to manual email, because the customer will keep receiving requests for instalments they no longer owe.
What to watch in the first three months
Instalments are judged on four numbers, all visible in the panel. Look at them month by month, not in aggregate.
Share of orders. What percentage of sales goes through instalments. Below five percent, the problem is usually visibility rather than appetite: the message is not on the product page.
Average order value on instalments against card. This is where you see whether BNPL genuinely lifts the basket or merely moves the same orders to a dearer method. If the average is identical, you are paying more fee for nothing and the sensible move is to raise the threshold at which it appears.
Approval rate. If the provider declines too many customers, the flow becomes irritating and costs you conversion. A rate below the sector average is worth a conversation.
Returns on instalments against returns on card. A slightly higher rate is normal, because BNPL lowers the barrier to buying. A large gap means the product is bought more lightly than it is kept, and that is a signal about your descriptions, not about the payment.
Which method for which amount
A rough guide that works for most shops.
| Order value | What to show | Why |
|---|---|---|
| up to €50 | Card only | Instalments do not change the decision and cost more |
| €50 to €150 | Card, instalments optional | Some customers respond; worth testing |
| €150 to €1,000 | Card and instalments, visible on the product | This is where the basket effect is strongest |
| over €1,000 | Card, instalments and Open Banking | On large amounts an A2A transfer saves meaningfully on fees |
Thresholds are tuned per business; this is a starting point, not a rule.
Questions about this
Who carries the risk if the customer stops paying?
The instalment provider. You receive the order amount on delivery, less the fee, and take no part in collecting the instalments.
What is the merchant fee?
Higher than the card fee, because it covers credit risk, and it depends on the sector, the average order value and the number of instalments. We quote it for the specific case on enquiry.
Does approval slow the order down?
No. The decision is automatic and takes seconds. The customer learns on screen whether they are approved and, if not, continues with a card without losing the basket.
Can I offer BNPL on only some products?
Yes. It can be limited by category or by price range. It is common to enable it above a certain value, where the effect on conversion is largest.
Does it affect my chargebacks?
A dispute on an instalment purchase runs under the provider's rules, not the card schemes'. In practice some disputes that would otherwise arrive as chargebacks are settled directly between the customer and the provider.
When is it better not to offer instalments?
On a very low average order value, on perishable goods and in sectors with a high return rate. In those cases the fee rarely earns back what the basket effect gives.
Does the customer see my name or the provider's on their statement?
Usually the provider's, sometimes alongside yours. It is a common cause of support calls, so it is worth stating in the order confirmation and on your FAQ page.
Ready to start accepting payments?
Send us an enquiry and you will get a concrete quote with calculated fees for your business, usually within one business day.