Summary: Klarna, Clearpay and PayPal Pay in 3 are popular with UK shoppers. Here is how to decide whether to offer them.
Buy-now-pay-later options let customers spread payments, and many UK shoppers now expect them for larger purchases.
Potential benefits
- Higher conversion on mid- and high-value orders
- Larger average order values
- Exposure to the provider's shopper network
Considerations
- Merchant fees are typically higher than standard card fees
- Regulation of BNPL in the UK is evolving
- Present BNPL responsibly and clearly
Implementation
Most UK-friendly platforms and gateways integrate BNPL providers directly, and on-site messaging can show instalment options on product pages.
Measure the impact
Compare conversion and order value before and after introducing BNPL, factoring in fees.
FAQs
Which provider is best?
It depends on your customers and platform; test one first.
Do we carry the credit risk?
Typically the provider does, but check each agreement.
Can BNPL work for B2B?
Some providers offer business payment terms products.
