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Buy now pay later, or “BNPL” services are becoming more popular as they allow consumers to pay for purchases in a short time without interest and a small initial payment. This solution enables online merchants to offer a multi-installment payment service that does not require customers to take out a traditional credit loan or pay bank charges.

The BNPL payment method is increasingly popular with Millennials, who prefer to keep payments flexible and balanced rather than having occasional spikes in consumption and going into debt. Split payment then appears to be the ideal tool to facilitate consumer purchases and at the same time increase the turnover achieved by businesses online.

If you want to take advantage of your competitors and boost conversion, give a shot to BNPL.

Installment Payments Benefits

Long-term customer satisfaction

The ability to pay in installments in a few simple steps makes it easier for consumers to access the products they want, which encourages them to complete their purchases and proceed to payment. Split payment solutions were developed to provide a frictionless shopping experience. This is why one of the most important innovations is real-time approval for the customer. By choosing to install this solution, e-merchants observe several positive results:

  • A significant decrease in shopping cart abandonment,
  • Conversion boost,
  • Increased average check.

In addition,  online merchants have access to new customers and additional sales. A growing number of consumers prefer to use installment payments for their ease of use and the flexibility it provides for managing personal finances, all without any hidden costs.  Consumers, especially the new generation, value flexibility when shopping. The simplicity and speed of an innovative 100% online payment method do the rest: when a split payment solution is among the payment options, merchants note an increase in the purchase recurrence rate and greater customer satisfaction.

Increased Loyalty and Client Retention

Increasing the frequency of purchases and the return of users to an eCommerce site first and foremost increases sales, and sustains them over the long term. The chance of selling to a repeat customer is actually much higher than that of generating a sale from a new customer. In addition to the purely economic benefits, a loyal customer often becomes the spokesperson for the company, which they make known through word of mouth to family and friends, positive comments, and opinions on social media.

However, the timing of the final product purchase remains critical to ensuring customer satisfaction, and an unintuitive or unreliable payment solution can jeopardize all efforts throughout the sales process.

Top Buy Now Pay Later Solutions for eCommerce


Affirm was created in 2012 and is a publicly listed corporation based in San Francisco, California. It has paid for 17 million purchases. Customers may borrow up to $17,500 and pay it back over time with no interest or at interest rates ranging from 10% to 30%, depending on the payment plan they select.

The majority of loans are returned in three, six, or twelve months with no additional costs (just interest), making this the best overall option. In rare cases, longer durations may be offered.

When you use Affirm to make a purchase, you always know precisely what you’re paying and when the payments will be completed. Many merchants use Affirm as a payment method when you check out. When this is not a possibility, you may still pay over time by obtaining a virtual credit card number online or using the Affirm mobile app to make in-store or online purchases.

  • Pros

No late fees

Make purchases online or in-store

Choose the payment schedule that works for you

Purchases up to $17,500

  • Cons

Some transactions charge interest

Most transactions require a credit check

No physical credit card


Klarna was formed in Sweden in 2005. It has subsequently spread throughout Europe and into the United States, with 147 million active clients and over 400,000 merchants in 45 countries. You may, however, use Klarna to split any purchase into smaller installments at any business that takes credit cards. When utilizing the pay in 4 option, Klarna has no effect on your credit.

Create a virtual card in the Klarna app during checkout and use that number to finish your transaction. One payment option is to make four equal payments on your purchase. The first is due right away, while the following three are due every two weeks. Klarna does not charge interest or fees if you make all of your regular payments on time.

Customers can also pay off the payment in full within 30 days with no interest. Another possibility is to use six- to 36-month financing for larger purchases, which would help it win this category. This longer-term option does incur interest charges.

  • Pros

Can be used wherever credit cards are accepted

One-time use card numbers provide enhanced security

No interest or fees when payments made on time

Earn rewards with its Vibe loyalty program

  • Cons

Each purchase must be approved by Klarna


Need Help to Integrate Klarna to Your Website? 


Afterpay is the finest buy now, pay later app for students since it uses smart credit restrictions to ensure that users can afford to pay for goods. The software also includes a virtual card for in-store transactions.

Afterpay, formed in 2014, is an Australian firm that works in Australia, New Zealand, the United Kingdom, the European Union, Canada, and the United States. It presently has 20 million international clients. It collaborates with over 100,000 brands, giving customers a wide range of options while buying.

Browse participating retailers online or in person to make purchases with no fees or interest if all scheduled payments are made. Every purchase you make is subject to a fast approval decision based on sensible credit restrictions, making it ideal for students with restricted financial resources.

To shop in-store, connect into your Afterpay account using the smartphone app, then add the virtual card number to your mobile wallet and touch to pay. You’ll make the first of four equal payments right now, then the remaining three every two weeks. Your order will ship as normal as long as your purchase is authorized. If you fail to make a payment on time, you will be charged up to 25% of your original order price.

  • Pros

Smart credit limits help you stay under budget

Sends reminders so you don’t miss a payment

No fees when you pay on time

  • Cons

Afterpay may decline your order

Late fees can be as high as 25% of order amount

Each purchase must be approved by Afterpay

Bottom Line

Payment is a fundamental part of the buying journey. The ability to choose between different payment methods and to receive payment in installments free of charge is particularly appreciated by customers who, if they are satisfied, will gladly come back to buy.


Support__Maintenance How Buy Now Pay Later Can Increase Sales and Customer LoyaltyMobecls team provides a wide range of eCommerce development services, starting from SEO and design to custom functionality development. Our 10+ years of Magento expertise allow us to provide unique eCommerce solutions taking into account industry and business specifics. If you want to take your business to the next level, we’re ready to help!

Dmitry Yatskevich

Dmitry Yatskevich

Head of Sales at Mobecls and eCommerce consultant with over 20+ years of experience, which he uses to help online retailers take their business to the next level.