BNPL (Buy Now Pay Later)
BNPL is a payment method where consumers receive purchases immediately but pay in later instalments, without a traditional credit card.
BNPL players (Klarna, Afterpay, Riverty, In3, Billink) let customers order-now-pay-over-X-days or in 3-4 instalments. For e-commerce merchants: higher average order value, lower conversion drop. For customers: no interest when paid on time, but debt risk. Regulation was tightened: CRD6 (2024) classified BNPL as consumer credit with accompanying warning obligations.
Example
A shop offers 'In3 in 3 equal instalments, 0% interest' at checkout. Conversion uplift: typically 15-25% for purchases >€200. In3 takes the credit risk; merchant receives full amount immediately (minus fee).
Frequently asked questions
What does BNPL cost the merchant?
2-6% per transaction, depending on player and volume. Higher than iDEAL, lower than credit card + chargeback risk.
Related terms
Further reading
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