Buy Now Pay Later Functionality for Ecommerce Business

We’ve recently discovered the CNN Business report, which reveals that big brands and retailers use the so-called ‘buy now, pay later’ feature, which has become a booming trend in the whole industry.

Ecommerce businesses are relying on this functionality as a promising way to engage with the young audience, be in sync with dramatic world changes and growing demand in online shopping during the COVID-19 pandemic.

Considering all these factors, we’ve decided to create a guide on how and why implementing this functionality into your business.

What is Buy Now Pay Later & How It Works

Buy Now Pay Later (BNPL) allows shoppers to purchase something and pay for it until a later date. Some services give an opportunity for customers to pay within 30 days or even up to 12 months. Such solutions usually raise money from ecommerce sellers paying fees on orders and late fees from purchasers if they miss their payment.

This functionality is achieved through integration with your online store, which can be hosted on any ecommerce platform. For example, if your website is powered by Magento, you’d better opt for a third-party provider that meets your goals and integrate it into your ecommerce website. In case you’ve no experience integrating solutions or necessary resources, we could help with any kind of integration with payment solutions.

Statistical Evidence that Persuades

  • ✓ Over 40 percent of Generation Y representatives have already experienced an order with the ‘buy now pay later’ solution at least a single time. Generation X representatives are also fond of this feature, as more than 50 percent of them have already chosen BNPL too, and 34 percent decided to pay after a while for their purchases even more than once. (Finextra)
  • ✓ The share of young purchasers is even much more significant, as 87 percent of customers aged from 22 to 44 show strong interest in splitting large orders into monthly parts. (American Banker)
  • ✓ At least 37 percent of pollees bought items with the BNPL option, but have in mind that it’s not typical for consumers in their 50s and older. (Ascent)
  • ✓ The great majority of Afterpay users, whose average purchase size is more than $100, pay their orders back on schedule. (Al Jazeera)
  • ✓ Over 65% of Afterpay customers made at least two purchases within the following six months. (Afterpay)

Number of credit cards and BNPL revenue — IBIS World Report

Buy Now Pay Later Solutions & Services Overview

Service #1: PayPal

The solution features different payment options, such as Pay in 4 and Credit, and displays dynamic and clear messages with this option on your website. Your purchasers could see their schedule of payments without any hidden fees. Don’t bother yourself with any extra processes, as the service will take care of gathering payments from your shoppers.

Compatibility with ecommerce platforms: BigCommerce, WooCommerce, 3dcart, Miva, Salesforce Commerce Cloud, Centarro, IWD plugin for Magento 2, PinnacleCart, Solidus.

Brands that use PayPal Buy Now Pay Later: ALDO, eBags, BBQ Guys, DICK’S Sporting Goods, Lands’ End, See’s Candies, Omaha Steaks.


Service #2: Klarna

One of the most popular payment solutions used by more than 8 million US users provides your users with a smooth shopping experience and offers them a range of flexible options, including payments splitted in 4 installments, within 30 days of purchase, or up to 36 months to pay.

Compatibility with ecommerce platforms: Magento Commerce, Stripe, Verifone, Vend, Salesforce Commerce Cloud, BigCommerce, Shopify, SAP Commerce Cloud, Woocommerce.

Brands that use Klarna: H&M, Adidas, Sephora, SHEIN, Ralph Lauren, Timberland, ASOS, The North Face, Abercrombie & Fitch, EXPRESS, Beautycounter, Something Navy.


Service #3: Sezzle

Reviewed by more than 4.2K users, Sezzle could be easily managed and integrated into any store with an API and plugins. The service will allow splitting a payment into four parts with no extra fee and encourage your shoppers to place larger orders and reach new audiences.

Compatibility with ecommerce platforms: Magento, Shopify, Woocommerce, Salesforce Commerce Cloud, 3dcart, CyberSource, BigCommerce.

Brands that use Sezzle: Jessica Simpson, Akira, Bodega, Altitude Sports, Steel, Bailey’s Blossoms, GameStop, Chinatown Market, Von Dutch, Hypland, SoftMoc.

Alani Nu

Service #4: Affirm

An easy-to-manage application provides your purchasers with an option to choose payments within 3 to 36 months after placing an order. As a merchant, you’ll also benefit from a wide range of opportunities, including A/B testing, extensive analytics dashboards, and customizing options.

Compatibility with ecommerce platforms: Shopify, WooCommerce, Magento, BigCommerce, Hybris, 3dcart, CyberSource, Drupal Commerce, OpenCart, Miva, Salesforce Commerce Cloud.

Brands that use Affirm: Walmart, Peloton, Jomashop, Paul Evans, Tradesy, Alternative Airlines, Suiteness, Cheap Air.

Pottery Barn

Service #5: Afterpay

Used by more than 11 million users worldwide, Afterpay provides ecommerce merchants and their customers with transparent solutions and a quick moderation process. The service lets shoppers pay in four parts every two weeks, while a merchant instantly gets a whole sum front.

Compatibility with ecommerce platforms: Magento, Shopify, WooCommerce, BigCommerce, Salesforce Commerce Cloud, Wix, Spree, ACADACA, Workarea, Adyen, Ecwid.

Brands that use Afterpay: UGG, Urban Outfitters, Skechers, Rebecca Minkoff, Free people, Forever 21, Revolve.


Service #6: Laybuy

Like similar services, Laybuy also offers a varied collection of payment opportunities. Get access to vast and insightful analytics and customer data to explore how you could offer your purchasers a more effortless and instant way to pay with no fraud risks.

Compatibility with ecommerce platforms: Magento, Shopify, WooCommerce, BigCommerce, Salesforce Commerce Cloud, Wix, Rocketspark, eStar, PrestaShop, Opencart, nopCommerce, Blackpepper, Kudos, Web Ninja, Storbie.

Brands that use Laybuy: EB Games, Culture Kings, Tarocash, Neverland Store, Rebel Sport, Briscoes, Postie, Cotton On, Typo, Robi.


Buy Now Pay Later: Tips for Ecommerce Merchants

#1 Make your Payment Information Easy to Understand & Prominent

The critical task for ecommerce merchants is to collect all the ‘buy now pay later’ information, make it well-structured and accessible. There are still consumers who haven’t tried such payment services yet and should know how it works and why it’s with choosing to make a purchase.

#2 Highlight Available Payment Options on Product Pages

Industry leaders and retailers usually place payment information in the footer of the website as well as on each product page to make it easier for customers to decide to buy while surfing the website.

#3 Conduct A/B testing to Discover What Works Best

Some BNPL solutions provide built-in A/B testing. Still, we highly recommend acting proactively and keeping an ear to the ground to know what is more relevant for your purchasers and how to upgrade your payments and make them conversion-friendly.


The ‘buy now pay later’ payment model was considered as one of the latest tendencies long before the COVID-19 pandemic for shoppers worldwide. Сoronavirus and global quarantine have led to a dramatic shift in how consumers make purchasing decisions. They tend to shop and pay online more because they stay at home and become more interested in alternative payments, making a BNPL functionality even more appealing.

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