Payments
Buy now, pay later (BNPL)
Updated
Buy now, pay later lets a shopper split a purchase into instalments or pay later, while the merchant is paid upfront by the BNPL provider.
At checkout the shopper chooses a BNPL option such as Klarna, Afterpay or Affirm, is approved by the provider, and repays it over time. The merchant receives the full amount, less the provider's fee, and the provider carries the repayment risk.
Merchants use BNPL to lift order value and reach shoppers who prefer not to use a credit card. Each provider approves shoppers itself and supports its own set of countries and currencies.
BNPL behaves differently from cards after the sale. Refunds and disputes follow the provider's own process rather than card network chargeback rules.
Frequently asked questions
- Does the merchant get paid upfront with BNPL?
- Yes. The BNPL provider pays the merchant and collects the instalments from the shopper.
- Who carries the risk if the shopper does not repay?
- The BNPL provider, not the merchant.
Sources
- Buy now, pay later — Stripe
In depth: Payment methods by country