Buy Now, Pay Later (BNPL) Apps for Your Shopify Store
Today’s online shoppers expect more than just great products. They want flexibility, convenience, and control over how they pay. That’s where Buy Now, Pay Later (BNPL) apps come in. These tools allow customers to spread out their payments over time without interest, making higher-priced items more accessible and checkout decisions easier.
From increasing average order value to reducing cart abandonment, BNPL apps remove common purchase barriers and create a smoother, more satisfying shopping experience. In this Blog, we’ll explore the top BNPL apps available for Shopify, their key features, and how to choose the best fit for your business goal
What is Buy Now, Pay Later (BNPL)?
Buy Now, Pay Later (BNPL) is a payment method that helps users buy a product upfront and pay for it later through installment plans. BNPL is a short-term loan that allows you to spend without interest (usually) as long as you make payments on time.
Key Features of BNPL:
-
- Deferred Payments
- Simple Approval Process
- Installments
- Data Security
How Does Buy Now, Pay Later Work?
Here’s a step-by-step breakdown of the process:
1. Choose Your Product or Service
Firstly, you have to select the product you have to buy. Now, take a look to see whether the retailer provides BNPL payment options at its checkout.
2. Select a BNPL Provider
Select the BNPL option at checkout (Shopify Payments, Afterpay, Klarna, or Affirm). You’ll be walked through an easy approval process.
3. Instant Approval
Most BNPL services do soft credit checks, so you needn’t worry about a difficult inquiry on your credit affecting your score. The approval process is fast, and decisions are made in seconds.
4. Pay in Installments
You will then make an initial installment afterwards (usually 25%). The total amount is broken down into equal installments, usually paid every two weeks or monthly.
5. Make Payments
Make payment automatically with a credit card, debit card or from a linked bank account and check your payments through the BNPL app or website.
Advantages of Buy Now, Pay Later
Buy Now, Pay Later isn’t just a trend, as it offers significant benefits for consumers looking for financial flexibility. Here are some of the top advantages:
1. Interest-Free Payments
Interest-free payment plans are available with many BNPL companies if you pay on time. This means that it offers a cheaper way to finance purchases than by using your credit or taking out a loan, both of which tend to carry high interest rates.
2. Easy Approval Process
Unlike credit cards and loans, BNPL services don’t often involve a hard credit check, so the approval process tends to be quick, and anyone can qualify.
3. Budget-Friendly Flexibility
Spreading out payments over time makes it easier to manage your budget. For larger purchases, this payment option is a lifesaver, allowing you to enjoy the products without the financial strain.
4. No Hidden Fees (If Paid On Time)
Most BNPL services don’t charge fees if you follow the repayment schedule. Late fees are only applied if you miss a payment, which is an easy fix by staying on top of your payments.
5. Transparency
BNPL providers are often upfront about the payment terms, including the number of installments, due dates, and whether interest is applied. This helps shoppers to make the right choices without hidden fees.
Disadvantages of Buy Now, Pay Later
There are a few potential drawbacks to BNPL services. Here’s what you should consider:
1. Overspending
The ability to buy now and pay later increased overspending, especially for people who struggle with budgeting. BNPL could lead to accumulating multiple small debts, which could be hard to manage.
2. Late Fees
Missing a payment can result in late fees and, in some cases, interest charges. This can quickly turn a seemingly affordable option into a more expensive one.
3. Limited Use for Large Purchases
While BNPL is great for smaller to mid-range purchases, it may not be the best option for large, one-time expenses, like home repairs or medical bills.
Top BNPL Companies and Apps
Several popular BNPL providers are offering flexible payment plans to customers. Here are a few of the top BNPL companies that have made a name in the market.
Shopify’s own Shop Pay Installments offers customers the ability to split purchases into 4 interest-free payments or monthly installments (for larger orders). It’s built directly into Shopify Payments, offering smooth checkout and faster load times.
You can add this feature to your Shopify admin right now with no extra software downloads. And there are no hidden fees or costs to fret over. Bonus: Because the app is built for Shopify, there is no delay or messy speed optimization to worry about.
Key Features:
- Managed directly through Shopify Admin
- Zero interest for 4-instalment plans
- Protection and security
- Supports high-ticket financing (with interest)
Klarna is one of the most popular BNPL companies, used by top brands like Adidas, Sephora, etc. It provides several flexible payment options, including Pay in 4, Pay Later (30 days), and financing for up to 36 months. You can add Klarna to your Shopify store by installing the Klarna on-site messaging app and setting up your chosen payment option.
Key Features:
- Works in 22+ countries
- Real-time credit approval
- Stylish checkout experience
- Built-in fraud protection
- Approved Quickly
Afterpay splits payments into 4 interest-free parts and works well with Shopify. There is also an “on-site messaging” app for Shopify on the Shopify marketplace (though it doesn’t have the highest reviews).
Key Features:
- Simple 4-payment model
- No interest or fees for customers
- Transparent dashboard for merchants
- Repayments options
- Approved Quickly
Another popular Buy Now Pay Later (BNPL) app that works smoothly with Shopify is Sezzle. This helps users divide their payments into four equal installments, without charging a rate of interest. Additionally, it allows users to enhance their credit profiles.
Although there is no dedicated app for Sezzle available in the Shopify marketplace, its integration into your store is easy, and it even includes a practical “setup checklist” for those new to the process.
Key Features:
- Instant approvals with no hard credit checks
- Free for customers if paid on time
- Merchant-paid fees
- Appeals to younger, value-focused audiences
Affirm provides a 0% APR and no interest fees on its repayment plans. The company presents users with a transparent, no-hidden-fee solution for making purchases through monthly installments tailored to their individual requirements.
Furthermore, Affirm provides higher purchasing limits compared to many alternatives, rendering it an excellent option for Shopify retailers dealing in high-value items. The company negotiates specific terms with each retailer and features a unique checkout function that enables customers to view their repayment options in real-time.
Key Features:
- Longer financing plans
- No hidden fees
- Transparent payment scheduling
- Powerful data insights for merchants
Also Read:- BigCommerce Vs Shopify: Which One Fits Your Business Best
BNPL vs Credit Cards: Key Differences
Feature | BNPL | Credit Card |
Interest | 0%, if paid on time | High (18-30%) |
Repayment Method | 4-6 weeks/months | ongoing(until balance paid) |
Eligibility Criteria | Approved easily | Depends on the card type and provider |
Credit Limit | Lower or specific amount | The limit is higher and depends on the card |
Joining Fees | No Joining Fees | If missed, annual fees and interest late fees |
Why Choose BNPL Services for Your E-commerce Store?
1. High Conversion Rates
When shoppers realise they can pay in manageable installments, they are significantly less inclined to abandon their cart. BNPL platforms minimize the initial financial obstacle, aiding hesitant customers in confidently finalizing their purchases
2. Improved Customer Loyalty
Buy Now, Pay Later provides ease and clarity to the shopping experience—two aspects that contemporary consumers highly appreciate. Positive experiences foster repeat business, and presenting reliable BNPL choices increases the likelihood of customers returning.
3. Broad Market Reach
By incorporating BNPL, your online store becomes immediately more reachable to a worldwide, budget-minded clientele.
4. Increase Average Order Value (AOV)
Flexible payment options motivate customers to fill their carts with more products. When the overall cost is divided into smaller payments, shoppers feel more at ease about upgrading or acquiring extra products they may have otherwise overlooked.
Who Should Use Buy Now, Pay Later?
BNPL is best suited for:
- Budget-conscious shoppers who need flexible payments for moderate purchases.
- Consumers without credit cards or those who want to avoid high-interest rates.
- Young adults who are just starting to build a credit history.
- People with irregular income who need more time to make payments.
However, BNPL may not be ideal for:
- Shoppers who tend to miss payments or fail to track due dates.
- People are prone to overspending or impulse buying.
- Individuals who prefer traditional credit-building methods, such as credit cards.
How CRM Master’s Infotech helps you to Set Up BNPL apps in your Shopify Store?
Setting up BNPL apps isn’t just about adding a plugin; it’s about integrating a seamless payment experience that aligns with your brand, boosts sales, and enhances customer trust. As an experienced Shopify Partner, our team ensures that the entire process from selecting the right BNPL solution to configuring it for optimal performance is handled with precision and care.
We don’t just install; we strategically implement, test, and tailor the BNPL experience to fit your store’s goals. Whether you need integration with Klarna, Afterpay, Shop Pay Installments, or any other leading provider, we’re here to make it smooth and successful.
Ready to offer flexible payments and elevate your customer experience?
Get in touch with us today, and let’s help your Shopify store grow together
