Should I Add Buy Now, Pay Later (BNPL) to My Online Store?

You’ve most likely seen or used any of the major Buy Now Pay Later (BNPL) options, such as Afterpay, Klarna or Affirm.

But is BNPL worth adding to your online checkout process? BNPL can boost conversions and expand your customer base by reducing the sticker shock that causes cart abandonment. However, BNPL also comes with higher processing fees and operational considerations.

Below is an overview of what BNPL is, who benefits most, the pros and cons, and best practices for implementation.

What is Buy Now Pay Later?

Buy Now Pay Later (BNPL) allows consumers to break down their purchase into multiple payments, usually weekly, bi-weekly or monthly. It’s interest free, which makes it much more appealing than a credit card, but payments must be made on time according to the provider's schedule. The merchant pays a percentage of each sale to the BNPL provider.

Who Benefits Most from BNPL?

Mid- to High-Priced Product Sellers

For example: Clothing boutiques, accessory brands, or tech/gadget shops where $50–$400 purchases are common.
Splitting a $200 order into four payments of $50 can push hesitant buyers to proceed.

Merchants with Younger or Cost-Conscious Shoppers

For example: Fashion, beauty, fitness gear, and certain D2C brands.
BNPL attracts customers who prefer smaller, no-interest chunks rather than maxing out credit cards.

Businesses Seeking Higher Average Order Value (AOV)

For example: Home goods, electronics, or subscription boxes that benefit from upselling additional items.
When customers see smaller installment amounts, they’re more likely to add extra items to their cart.

Global or Cross-Border Stores

For Example: Merchants targeting international consumers uncertain about exchange rates.
Offers an easy, transparent payment plan that lowers the barrier for overseas buyers.

What are the Pros of Offering BNPL?

Reduced Cart Abandonment

Sticker shock is one of the biggest abandonment causes. Shoppers seeing a lower installment total (e.g., “Pay just $25 now”) instead of the full $100 are more likely to check out as the purchase feels like much less of a financial burden.

Increased Conversion Rates

BNPL can help convert on-the-fence visitors who find immediate full payment a barrier. It also appeals to consumers wary of adding more to their credit card balance. In fact studies show up to 30% increase in conversion rates when retailers offer BNPL.

Higher Dollar Value Per Sale

People are much more likely to add more to their cart or opt for more expensive items if they can break up their payment. Many retailers report a 20–30% uplift in average order value (AOV) after enabling BNPL.

Appealing to New Demographics

Younger shoppers or those with limited credit lines often prefer BNPL’s interest-free payments, which means a broader audience for you.

What are the Cons of Offering BNPL?

BNPL providers charge extra on top of standard payment processing, reducing your net margin.

Risk of Overextended Shoppers

Customers may juggle multiple BNPL plans and could default on payments. Though the provider typically bears that loss, you might still deal with returns or restocking overhead.

Complex Refunds & Internal Coordination

Handling partial returns or cancelled orders requires syncing with the BNPL provider’s system, adding extra steps for your support staff.

Types of Businesses That Might Not Benefit from BNPL

Low-Margin or Budget Goods: For example discount retailers selling items under $15

Micro-Price or Single-Use Products: Such as convenience Ecommerce Stores, small digital downloads and gaming purchases, or basic consumables.

Businesses with Minimal Returns/Exchanges: Single-product shops with minimal stock or a “one-and-done” purchase pattern.

Extremely Low Chargeback Tolerance: Very high-volume shops where partial refunds would be frequent, or specialized items not easily restocked/resold.

Best Practices for a Seamless BNPL Implementation

Research Your Provider

Consider who’s popular in your region or industry, and whether they handle large or small purchase amounts best.

Be Transparent

Display installment breakdowns on product pages and at checkout. Warn about late fees upfront to avoid nasty surprises or disputes.

Integrate BNPL Across Your Funnel

Advertise “Pay in 4” or “No interest if paid on time” early in the process. Many customers appreciate not having to do math themselves.

Watch Margins and Performance

Keep an eye on net profit post-BNPL fees and track conversion changes. If AOV rises enough to offset costs, you’re on the right track.

Team Training & Clear Policies

Staff should understand how BNPL refunds or disputes work, and your store policies must outline who bears shipping or restocking costs on partial payments.

BNPL, is it for me?

For merchants selling mid-range to high-ticket items, BNPL can be a conversion-boosting powerhouse, lowering cart abandonment and attracting new demographics. But if your margin is ultra-thin, your products are already very affordable, or your operational model can’t handle partial refunds smoothly, BNPL might add more complexity than value.

Need Help Sorting Out BNPL Logistics?

At JJS Global, we provide payment consulting and checkout integrations to match your sales model—whether that’s BNPL, multi-currency support, or advanced fraud detection. Contact us to learn how we can optimize your payment strategy and safeguard your bottom line.

Get Started Apply Now