How can a payment platform add BNPL for its merchants?

By connecting BNPL providers as payment methods on the global payment network, activating them per merchant and market, and presenting them in a branded checkout. The provider carries the credit risk and pays the merchant upfront.

What BNPL providers do

A buy now, pay later provider approves the customer at checkout, pays the merchant the full amount minus a fee, and collects from the customer in installments. The provider carries the credit risk and the collection work. For the platform, BNPL is a payment method with a redirect or an embedded widget, an approval step and a settlement file.

Adding it

• Connect the BNPL providers active in each market to the payment network.
• Activate them per merchant account, with the provider's merchant agreement in place.
• Present them in the hosted checkout, with the provider's eligibility rules (amount, country, customer age).
• Handle refunds and partial refunds through the provider, since the customer's plan has to be adjusted.
• Reconcile the provider's settlements against orders, fee by fee.

What to tell merchants

BNPL raises average basket and conversion in fashion, electronics and furniture, and costs more than cards per transaction. Regulation is tightening in Europe and the United States, with credit checks and affordability rules reaching more providers. Operators that offer several BNPL providers per market, and report them next to cards, let merchants compare cost and conversion and choose per product line.