To add buy now pay later (BNPL) to your store, you sign up with a BNPL provider, install its plugin for your platform or integrate its API, and show it as a payment option at checkout. The customer splits the price into instalments. The provider pays you the order amount upfront, minus its fee, and takes on the job and the risk of collecting from the customer. After that, most of the work is about placement, refunds and choosing a provider your customers already know.
How BNPL works for a merchant
From your side, a BNPL payment looks a lot like a card payment, with a few differences. The flow usually runs like this:
- The customer picks the BNPL option at checkout.
- They're sent to the provider, or a pop-up opens, where they sign in or sign up. The provider decides on the spot whether to approve them.
- If approved, the customer pays the first instalment, or nothing yet, depending on the plan.
- The provider confirms the order to your store, and you ship as normal.
- The provider pays you the order amount, minus its fee, on its normal payout schedule.
- The customer pays the remaining instalments to the provider, not to you.
If the customer misses a payment, that's the provider's problem. You're paid either way, as long as the order isn't disputed or refunded. That's what the fee covers: the credit risk, the fraud checks and the collections. BNPL fees are usually higher than card fees and vary by provider, plan and sales volume, so get a quote from each provider you're considering.
When BNPL lifts sales, and when it doesn't
BNPL helps most where a price is a stretch for one payday but comfortable spread over a few weeks. Think fashion, electronics, furniture, beauty, fitness equipment and courses. It also helps when your customers already use a BNPL app and trust it, because they can pay without typing card details.
It helps less on very cheap items, where splitting a small amount isn't worth the bother, and on very expensive ones, which may be above the provider's limits. It also won't do much if your checkout has bigger problems, such as slow pages or delivery charges that appear at the last step. Fix those first.
The only reliable way to know is to add it and watch your own numbers: conversion rate, average order value and the share of orders paid with BNPL. Compare a few months before and after, and keep an eye on returns.
Providers by region
Pick a provider your customers already recognise. A familiar name at checkout matters more than small differences in features. Widely known providers include:
| Region | Widely known providers |
|---|---|
| Gulf | Tabby, Tamara |
| Sri Lanka | Koko, Mintpay |
| Southeast Asia | Atome |
| Europe and the US | Klarna, Afterpay (known as Clearpay in the UK), Affirm |
Coverage changes, so confirm that each provider supports your country, currency and platform before you plan around it. If you sell in several regions, you may need more than one provider, each shown only to customers in the right country. There's more on Gulf checkouts on our UAE page.
Where to show BNPL
Product pages
Most providers offer a small widget that sits under the price, along the lines of "or 4 payments of AED 50". This is where BNPL does a lot of its work, because the customer sees the smaller number before deciding to buy. Keep it next to the price, make sure it updates when the customer picks a different size or variant, and hide it when the price is outside the provider's limits.
Cart and checkout
Repeat the message in the cart, and list BNPL as a clear payment option at checkout with the provider's logo. Don't hide it under "other payment methods". If you offer more than one provider, keep the labels short and consistent.
Elsewhere
Some stores mention BNPL in a header banner or on category pages. Use the provider's approved wording and artwork. Providers usually have rules about how their product is described, and in some countries BNPL advertising is regulated.
Refunds and partial refunds
Refunds are where BNPL integrations go wrong most often, so test them properly before launch.
- Refund through the provider. Never refund a BNPL order by bank transfer or store credit outside the provider's system. The customer would still owe the provider their instalments.
- Partial refunds. If a customer returns one item from a three-item order, the provider reduces what the customer still owes. Make sure your platform sends the right amount and that the order record shows exactly what was refunded.
- Cancellations before shipping. Some integrations authorise the payment at checkout and capture it when you ship. Cancelling before capture works differently from refunding after it, so know which model yours uses.
- Fees on refunds. Check whether the provider returns its fee when you refund an order. Terms differ.
Brief your support team as well. When a customer asks about an instalment, the answer usually has to come from the provider, not from you.
Plugins or API?
If your store runs on WooCommerce, Shopify, Magento or a similar platform, start with the provider's official plugin or app. It handles the checkout flow, the product page widget and, usually, refunds from your admin panel. Check that it's actively maintained, that it supports partial refunds, and that it works with your theme. If you're still choosing a platform, our WooCommerce vs Shopify comparison looks at how payments differ between the two.
Use the API when you have a custom-built store, a mobile app, or rules a plugin can't handle, such as different providers per country or BNPL only on certain products. An API integration follows the same pattern as any payment integration: create a session, send the customer to the provider, confirm the result on your server with a webhook or status check, and handle captures and refunds from your back office.
BNPL integration checklist
- Merchant account approved with each provider you plan to use
- Provider confirmed for your country, currency and platform
- Product page widget showing the right amount for every variant
- BNPL listed clearly at checkout and hidden outside the provider's limits
- Orders confirmed on your server, not by the browser redirect alone
- Full refund, partial refund and cancellation tested end to end
- Payouts and fees matched against the provider's settlement report
- Support team briefed on who answers instalment questions
Rules on BNPL are changing in several countries. This is a general guide, not legal advice, so check current rules with your provider or regulator.
We add BNPL to existing stores and build it into new ones as part of our websites and e-commerce work. Contact us for a quote.
Questions people ask
Does BNPL cost the customer anything?
It depends on the provider and the plan. Many short instalment plans are interest-free for customers who pay on time, while late payments may carry fees, and longer plans can carry interest. Link to the provider's own terms rather than writing your own summary.
Can I offer more than one BNPL provider?
Yes. Some stores offer two in the same country, or a different one in each market. Keep the checkout tidy, and make sure each provider is only shown where it actually operates.
What happens if a customer stops paying?
The provider handles collections and carries that risk. You keep the payment you received, unless the order is refunded, cancelled or successfully disputed.
Can I add BNPL to a mobile app?
Usually, yes. Many providers offer mobile SDKs or a web-based flow that works inside an app. Check what your provider supports before designing the checkout.