So, when exactly does a Buy Now Pay Later (BNPL) app come in handy?
Well… Just imagine this: a customer lands on your Shopify or WooCommerce store, loves your product, but their wallet says, “Nope, not today, boss.” They hover over that checkout button and… poof. Another cart lost to the black hole of indecision.
Now imagine instead they see Buy Now Pay Later (BNPL) front and center. Suddenly, that $120 hoodie doesn’t feel like a financial gut punch, it’s four easy payments of $30. Their brain goes, “I can swing that,” and you get paid in full, upfront, with zero chasing them down.
That, my friend, is the BNPL effect. And in 2025? Customers expect it. Skip it, and you’re playing ecommerce on hard mode.
This guide is your complete playbook. We’re talking:
- How BNPL actually works (spoiler: it’s not voodoo financing).
- The big-name providers (Afterpay, Klarna, Affirm, Sezzle, PayPal Pay Later, humm) and which ones fit your brand.
- Step-by-step integrations for Shopify & WooCommerce.
- What it costs, what can go wrong, and how to milk every last conversion out of it.
Strap in. This is the BNPL masterclass you wish you had last year.
What Is Buy Now Pay Later (BNPL) & Why It Matters for Ecommerce
BNPL isn’t rocket science. It’s basically the modern layaway: customers split their purchase into smaller installments, usually interest-free if they pay on time. They get the product now, you get paid now, and the BNPL provider handles collecting the rest.
BNPL by the Numbers (Brace Yourself)
- BNPL accounted for $226B globally in 2024 – that’s billion with a B.
- It’s expected to double by 2028.
- Nearly 50% of Millennials and Gen Z have used BNPL in the past year.
- Those customers? They spend 30–50% more per order.
If you’re not offering BNPL yet, you’re leaving money on the table. Your competitors already are. Amazon, Target, Walmart – they’re all-in. If you’re not? Your checkout is a ghost town in waiting.
Why You Need Buy Now Pay Later (Unless You Like Abandoned Carts)
1. It Smashes Conversion Roadblocks
A $100 purchase feels heavy; “four payments of $25” feels doable. That psychological trick drops cart abandonment rates faster than you can say “revenue.”
2. It Pumps Your Average Order Value (AOV)
BNPL makes upsells feel painless. “Sure, I’ll grab the matching belt for $20—it’s basically just $5 extra per payment.” Merchants see 20–35% AOV lifts once BNPL is live.
3. It Levels the Playing Field
Big-box retailers have BNPL on lock. If you’re not matching that experience, you look outdated.
4. It Wins Younger Shoppers
Gen Z and Millennials are allergic to credit cards. BNPL is their jam. Offering it earns you instant cool points (and sales).
How Buy Now Pay Later Works (For Merchants vs. Customers)
From the Customer’s POV:
- They hit checkout, select BNPL.
- Pay the first installment.
- Get the product now (none of this “wait until you finish paying” nonsense).
- Remaining payments auto-bill on schedule.
From Your POV:
- You get paid in full upfront (minus a 3–6% fee).
- BNPL provider handles chasing payments.
- You ship as usual.
The Catch:
- Fees: BNPL providers charge more than standard credit cards.
- Returns: Customers who haven’t paid off an item yet can still return it, logistics can be messy.
- Dependency: Don’t let one BNPL provider control too much of your cash flow.
Setting Up Buy Now Pay Later (Shopify)
Option 1: Shopify Payments (Shop Pay Installments)
- Powered by Affirm.
- Seamless, already in your Shopify Payments settings.
- Great for small to mid-ticket items.
Option 2: Third-Party Apps
- Afterpay, Klarna, Sezzle…. you’ll find them in the Shopify App Store.
- Each comes with its own dashboard and promotional tools.
Setup Cheat Sheet:
- Enable BNPL provider in Shopify Payments or install from the App Store.
- Add messaging to product pages (“4 payments of $X with Klarna”).
- Test your checkout flow. Don’t skip this, mixed carts can get messy.
Pro Tip: Show BNPL options early (like on the product page). If customers only see it at checkout, you’ve missed the emotional trigger.
Setting Up Buy Now Pay Later (WooCommerce)
WooCommerce is the wild west of plugins, but you’ve got options:
Top Picks:
- Klarna Payments: Great international coverage.
- Afterpay Gateway for WooCommerce: Trusted by DTC brands.
- PayPal Pay Later: Works like a charm if you’re already on PayPal.
Setup Steps:
- Install the plugin from WooCommerce Marketplace.
- Connect your provider account.
- Drop in promotional shortcodes.
- Test checkout on desktop and mobile.
Optimization Hacks:
- Don’t flood your checkout with 10 BNPL logos. Pick 1–2 providers max.
- Place BNPL info above the fold on mobile. Most of your traffic is there.
A Review of The Buy Now Pay Later Providers
Here’s the juicy part. Which BNPL provider is your soulmate? Spoiler: they’re all a little different, and choosing the right one can make or break your checkout experience.
Afterpay
The OG. Afterpay is the household name in BNPL, especially in fashion and beauty. Customers know it, trust it, and actively seek it out. Its “pay in 4” model is simple: four equal interest-free payments every two weeks. Merchants love it because they get paid in full upfront—even if a customer flakes out on their payments.
Strengths:
- Giant brand recognition: Customers don’t need hand-holding; they see the Afterpay logo and instantly feel confident buying.
- Built-in co-marketing: Afterpay actively promotes its merchant partners in its consumer app, which means free traffic and exposure for your store.
- Lightning-fast approvals: Real-time credit checks mean zero friction during checkout. No sending customers to another screen for 5 minutes.
- Plug-and-play integrations: Shopify and WooCommerce merchants can connect Afterpay in minutes.
Fees:
- 4–6% per transaction. Yes, it’s pricier than traditional credit cards, but the volume lift typically outweighs the fee.
Best For:
- Sweet spot product range of $50–$300. Apparel, beauty products, and impulse buys do exceptionally well.
Insider Tips:
- Set custom order minimums to avoid someone buying a $10 keychain on a four-payment plan (that’s not profitable).
- Leverage Afterpay’s promotional widgets, they’ve been A/B tested to death and lift conversions when placed on product pages.
- If you’re in fashion or beauty, use Afterpay’s seasonal campaigns to tap into their massive email list and app traffic.
Klarna
The world traveler. Klarna is the biggest international BNPL provider with a presence in 45+ countries. Customers can pay in 4, pay in 30 days, or choose longer-term financing, making it incredibly flexible.
Strengths:
- Unmatched global reach: Perfect if you’re selling cross-border and want one BNPL partner to cover multiple markets.
- Sleek UX: Klarna’s branded checkout flows inspire trust and reduce friction.
- Data-rich dashboards: Merchants get robust analytics, including insights on customer lifetime value and repeat purchase behavior.
- Discovery platform: Klarna’s app is essentially a shopping mall, it promotes your brand to their millions of users.
Fees:
- 3–5% + $0.30 per transaction. Fees may vary by market and transaction volume.
Best For:
- International brands and higher-ticket products ($300+) that benefit from Klarna’s financing options.
Insider Tips:
- Treat Klarna’s app like a marketplace. Optimize your brand listing, because Klarna can drive meaningful traffic.
- Use Klarna’s messaging tools to display installment amounts on product pages; their branded widgets are proven to increase AOV.
- If you ship globally, Klarna can simplify your payment stack by handling multiple currencies.
Affirm
The grown-up in the room. Affirm is all about big-ticket purchases with repayment terms that extend up to 36 months. It’s also the power behind Shopify’s native Shop Pay Installments.
Strengths:
- Flexible terms: Customers can choose repayment plans that fit their budget, which is perfect for products priced at $500+.
- Transparent policies: No late fees, no compounding interest. Customers appreciate the honesty.
- High approval rates: Affirm’s credit checks are designed to approve more customers without adding risk for merchants.
- Shopify synergy: If you’re on Shopify, Affirm is basically plug-and-play through Shop Pay Installments.
Fees:
- 5–6% per transaction, depending on transaction volume and the customer’s repayment plan.
Best For:
- Expensive, durable goods like furniture, electronics, fitness equipment, or anything that makes a customer think twice about dropping $500–$3,000 all at once.
Insider Tips:
- Lean into Affirm’s co-marketing tools. They’ll feature your store in their app and email campaigns, which can generate incremental sales.
- Add messaging like “As low as $45/month with Affirm” on product pages for higher-ticket items—this reduces sticker shock.
- Affirm’s extended terms can pair beautifully with product bundles. Customers are more likely to purchase multiple items when they can spread out payments.
Sezzle
The up-and-comer. Sezzle is a favorite among Gen Z thanks to its credit-building program (Sezzle Up) and its ability to reschedule payments. Customers love the flexibility, and small merchants love how easy it is to integrate.
Strengths:
- Appeals to younger shoppers: Gen Z and budget-conscious Millennials trust Sezzle to make purchases feel more accessible.
- Flexible payments: Customers can reschedule a payment if needed, which keeps them happy and reduces defaults.
- Simple integration: Shopify and WooCommerce merchants can set up Sezzle in under an hour.
- Credit-building: Sezzle Up allows customers to build their credit score by paying on time, which is a unique value proposition.
Fees:
- Roughly 4–6% per transaction, on par with Afterpay.
Best For:
- Low-to-mid-ticket items and brands catering to a younger audience.
Insider Tips:
- Set minimum order thresholds to avoid unprofitable microtransactions.
- Promote Sezzle Up as a way for customers to boost their credit. This resonates especially well with Gen Z.
- Sezzle’s app showcases merchants to its user base. Make sure your brand profile is polished to attract new shoppers.
PayPal Pay Later
The old faithful. Your customers already know and trust PayPal, which makes PayPal Pay Later a low-risk way to add BNPL without confusing your audience. Customers can pay in 4 or opt for longer-term PayPal Credit financing.
Strengths:
- Built-in trust: Nearly everyone has a PayPal account. Checkout feels safe and familiar.
- Global reach: Perfect if your customers span multiple countries.
- Frictionless UX: No new accounts required; customers stay in the PayPal ecosystem.
- Fraud protection: PayPal’s robust systems protect merchants from risky transactions.
Fees:
- Same as PayPal’s standard merchant fees (~2.9% + $0.30 per transaction).
Best For:
- Merchants already using PayPal Payments who want to add BNPL with minimal setup.
Insider Tips:
- Don’t expect PayPal Pay Later to drive new customers to your store. It’s not a discovery channel.
- Display “Pay in 4 with PayPal” messaging on product pages to remind customers they have the option.
- PayPal’s financing options can be a great upsell tool for higher-ticket items; use their payment widgets strategically.
Buy Now Pay Later Comparison Snapshot
| Provider | Fees | Reach | Best For |
| Afterpay | 4–6% | North America | Fashion & beauty |
| Klarna | 3–5% + $.30 | Global | Higher-ticket items |
| Affirm | 5–6% | US, Canada | Big-ticket items |
| Sezzle | 4–6% | North America | Gen Z shoppers |
| PayPal Pay Later | PayPal fees | Global | Existing PayPal users |
Buy Now Pay Later – Fees, Requirements, and Limits
- Fees: Expect to lose 2–6% of each BNPL transaction in provider fees.
- Requirements: Providers will vet you (creditworthiness, sales volume, product category).
- Customer Limits: BNPL providers cap customer spending based on creditworthiness.
Best Practices to Promote Buy Now Pay Later
- Show it early. Put BNPL messaging on product pages, not just at checkout.
- Use real numbers. “4 payments of $25” > “Installments available.”
- Promote it everywhere. Emails, socials, ads, co-brand with your BNPL provider.
- Bundle upsells. “Get the full set now for just $10 more per payment.”
- Educate. Add a simple BNPL FAQ page. A confused shopper is an abandoning shopper.
Top Buy Now Pay Later Mistakes (Don’t Be This Merchant)
BNPL can be a conversion rocket booster when done right. But if you get sloppy, it can backfire hard. Here’s what trips up merchants (and how to sidestep the landmines):
1. Overselling Buy Now Pay Later
Merchants love to pitch BNPL as “free money” because it drives sales. But overselling or burying the terms can destroy trust faster than a bad Yelp review.
- Reality check: If customers think they’re getting something for nothing and then get hit with late fees, they’ll torch you online.
- Fix it: Be up front about repayment terms. Show the full installment schedule and any late fees clearly on product pages and at checkout.
- Pro tip: Use plain English. Skip jargon like “interest-free APR financing,” customers tune that out. Say, “Four easy payments of $25. Pay on time, no fees.”
2. Cluttered Checkout
Your checkout is sacred ground. Add too many BNPL logos, pop-ups, or competing payment options and you’ll paralyze customers with choice.
- Reality check: BNPL should simplify decisions, not create analysis paralysis.
- Fix it: Stick to one or two BNPL providers that match your audience. Don’t slap every option under the sun into your checkout.
- Pro tip: Use provider-branded widgets sparingly. Place them on product pages and cart pages where they drive confidence, not in 10 different places.
3. Ignoring Mobile
70%+ of ecommerce traffic is mobile. If your BNPL buttons are hidden or tiny on a smartphone screen, you’re basically lighting money on fire.
- Reality check: Mobile shoppers bounce at the first sign of friction.
- Fix it: Test your product pages and checkout on multiple devices. Make sure the BNPL callouts are visible without scrolling and the buttons are big enough to tap easily.
- Pro tip: Place BNPL messaging above the fold on mobile product pages. It reassures buyers right when they’re making a purchase decision.
4. Ghosting Customers Post-Purchase
BNPL customers are paying in installments, which means they need a little extra reassurance. If they hear crickets after buying, they’ll start to panic (or worse, file chargebacks).
- Reality check: Radio silence = distrust.
- Fix it: Set up automated email and SMS flows that confirm the payment schedule, shipment updates, and delivery windows.
- Pro tip: Consider adding a branded post-purchase landing page that shows order details and the remaining payment breakdown. It’s a small touch that makes customers feel in control.
5. Untrained Staff
Your support team is on the front lines. If they don’t understand how BNPL works, they’ll fumble customer questions about billing, returns, or eligibility, and your reputation takes the hit.
- Reality check: Customers expect your staff to know the ins and outs of the BNPL option they used.
- Fix it: Train your support team on each BNPL provider’s policies. Create quick-reference guides and canned responses for common scenarios.
- Pro tip: Give your team access to the BNPL dashboard so they can resolve issues fast (e.g., checking installment status or initiating a refund).
Bottom line: BNPL can skyrocket sales, but the execution matters. Be transparent, keep your checkout clean, prioritize mobile UX, stay in touch after purchase, and empower your staff to handle BNPL questions like pros. Do those five things and you’ll build trust – and repeat customers – instead of headaches.
Final Thoughts: Buy Now Pay Later Is a No-Brainer
Let’s cut to the chase: Buy Now Pay Later isn’t a trend. It’s table stakes. Customers expect it. Competitors are using it. And the brands winning in 2025 aren’t debating if they should offer BNPL, they’re debating which provider gets the privilege of powering their checkout.
When executed properly, BNPL does three powerful things for your business:
- It smashes cart abandonment: That $120 cart total doesn’t feel like a gut punch when it’s framed as four easy $30 payments. This psychological shift closes sales you’d otherwise lose.
- It lifts your AOV: Customers think, “What’s another $20? It’s only $5 more per installment.” Boom, upsells and bundles suddenly fly off the shelves.
- It earns you customers who’d otherwise bail: BNPL makes your brand more accessible, especially to Gen Z and Millennial buyers who don’t live and die by credit cards.
Here’s the reality: customers want flexibility, and BNPL delivers it without hurting your cash flow. Whether you choose Afterpay, Klarna, Affirm, Sezzle, or PayPal Pay Later, the goal is the same: remove friction and make it stupid-easy for your customers to say “yes” right now.
If you’re still on the fence, ask yourself this: how many sales are you losing because a customer loves your product but hates the upfront cost? Every day you delay adding BNPL, you’re leaving revenue, and repeat buyers, on the table.
The bottom line: add BNPL now. Optimize your checkout. Train your team. Promote it everywhere. Because the brands that bake BNPL into their customer journey today will own the customer relationships (and the revenue) of tomorrow.
Keep Leveling Up: More Ecommerce App Guides
You’ve just unlocked the BNPL playbook, but why stop there? We’ve got a library of guides designed to help Shopify and WooCommerce merchants like you squeeze every last drop of revenue from your store.
- The 10 Best Attribution Apps For Shopify Stores Big & Small
- Finding the Best AI Chatbot for Shopify: Rep AI vs Tidio vs Shopify’s Free Magic App
- How To Boost Average Order Value (AOV) for Shopify & WooCommerce Stores – Best Upsell Apps [2025]
👉 Click through and keep stacking wins. Because BNPL is just one piece of your growth puzzle—the next big unlock for your store could be one blog post away.
More flexibility, conversions and growth.