Buy Now, Pay Later: What Merchants Should Know
Buy Now, Pay Later (BNPL) is reshaping how consumers shop—and how merchants convert. By allowing customers to split purchases into interest-free installments, BNPL can increase sales, reduce cart abandonment, and attract new buyers.
But is it right for your business?
What Is BNPL?
BNPL lets customers break purchases into smaller payments over time—without using a credit card. Popular providers like Klarna, Afterpay, and Affirm offer quick approval and easy integration for both online and in-store checkouts.
Why Merchants Are Offering BNPL
- Higher Conversions: BNPL reduces sticker shock at checkout, helping turn more browsers into buyers.
- Larger Transactions: Customers tend to spend more when payments are spread out.
- New Customer Reach: BNPL platforms bring their own user base, offering added exposure.
- You Get Paid Upfront: BNPL providers pay merchants in full, assuming the risk of repayment.
What to Consider
- Higher Processing Costs: BNPL fees are typically higher than credit card rates.
- Checkout Experience: Some providers disrupt the flow with off-site redirects or added branding.
- Compliance: Regulators are starting to scrutinize BNPL models—merchants should stay informed.
How Rate Tracker Helps
We guide merchants through the pros and cons of BNPL, using real data to assess if it fits your business. If it does, we help you integrate it seamlessly—without inflated fees or hidden tradeoffs.
