BNPL - Buy Now Pay Later

What is BNPL?

Buy Now Pay Later allows customers to receive the goods immediately and pay over time. Typically, the amount is split into 3-4 interest-free installments or the customer is given a deferred payment period (e.g. 14 or 30 days). The BNPL provider pays you as a webshop owner immediately and assumes the credit risk.

How BNPL works

1. The customer selects BNPL as the payment method in your checkout.
2. The BNPL provider performs a quick credit check (typically seconds).
3. The customer is approved and completes the purchase.
4. You receive payment from the BNPL provider (minus fees) immediately.
5. The customer pays the BNPL provider in installments or after a deferred deadline.

Popular BNPL providers in Denmark

• Klarna: The most well-known BNPL provider with "Pay later" (deferred payment) and "Partial payment" (installments). High brand recognition among Danish consumers.
• Anyday: Danish BNPL solution with focus on interest-free installments in 4 installments. Lower fees than several competitors and strong presence in Danish e-commerce.
• ViaBill: Danish provider with "Try first, pay later" and installments up to 24 months.
• Resurs Bank: Nordic provider with various financing options, including invoice and installments.

Benefits for webshops

• Higher conversion: Removes the payment barrier - especially for more expensive products. Customers who would otherwise abandon the cart complete the purchase.
• Higher order value: Customers typically buy more when they can pay in installments. Studies show on average 20-30% higher order value.
• No credit risk: The BNPL provider assumes the credit risk. You get the money immediately, regardless of whether the customer pays.
• Competitive advantage: Customers prefer shops that offer flexible payment options and often choose the shop that has their preferred payment method.
• New customer segments: You reach customers who might not buy without the option to pay in installments.

Costs for webshop owners

BNPL providers typically charge a transaction fee of 2-6% of the order amount. The fee varies depending on:

• Provider: Anyday generally has lower fees than Klarna.
• Volume: Higher sales volume can result in better terms.
• BNPL type: Deferred payment is typically cheaper than installment payments in many installments.

For many shops, the fee is offset by the increased conversion and higher order value.

The customer's perspective

For the customer, BNPL is attractive because:

• They can try the item before paying the full amount.
• The partial payment is often interest-free (if paid on time).
• It provides flexibility in personal finances.

However, it is important to note that BNPL can lead to overspending by some consumers and there is increasing regulatory attention in this area.

BNPL in Shoporama

Shoporama supports BNPL through integrations with major payment gateways. You can offer BNPL as a payment option in your checkout by setting it up via your payment gateway - for example QuickPay, OnPay or Stripe, which all support multiple BNPL providers. Display the BNPL option clearly on product pages (e.g. "Pay from X kr/md") to increase conversion even before checkout.