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Do eCommerce sites have BNPL options? How does it work?

Do eCommerce sites have BNPL options? How does it work?

The exponential rise of the buy now pay later system has been evident in almost every domain, owing to its incredible convenience and value-addition to consumers and businesses alike. If you are new to this arena, then BNPL is a financial payment mechanism whereby the user pays only a fraction of the total purchase value, the rest of which is paid by the BNPL lender. Over the course of an agreed period, the user then repays the lender through interest-free EMIs, for which a charge is applied only in case of a default. Today, such a system has revolutionized the fintech domain.

How BNPL fits into eCommerce


is one of the major areas in which the buy now pay later paradigm has emerged victorious. Online stores have also found it extremely convenient to instill the BNPL feature into their payment system as a primarily digital service. With a growing user interest in this system, eCommerce retailers have also realized the value being added to their stores. Since the birth of BNPL apps, there has been a growing acceptance from digital stores and is soon expected to be present in almost every eCommerce shopping experience.

Why are online stores making the shift?

As mentioned before, buy now pay later apps are being highly sought after by online retailers and digital store owners. Here is some insight into the major reasons contributing to this shift:

  • Better user experience – Adding the BNPL feature to your online store automatically improves the user experience by a huge margin. Most apps have an incredibly user-friendly interface, meaning users can seamlessly go through the payment system and make high ticket purchases.
  • Competitive services – With the shop now pay later feature, online stores can improve their overall shopping experience, thereby improving their competitive game plan against other stores in the market that may not possess this feature yet.
  • Increased retention – eCommerce stores that make use of the BNPL system often have a higher consumer retention rate, and users feel comfortable coming back to shop at a store that offers them the right payment mechanism. Moreover, the presence of such a feature also helps stores bring in new customers who are loyal to the BNPL payment system.
  • Convenience – As the BNPL system does not require users to pay immediately, it makes products more affordable and adds convenience to every shopping experience. Being a digital feature, users can simply push a few buttons on a screen to buy products of their choice without having to shell out a dime. This improves the consumer’s shopping experience and even incentivizes them to purchase higher value.

Unraveling the mechanism

While understanding the benefits that the buy now pay later system brings to eCommerce chains may be a seamless affair, comprehending the process behind adding it to your store and the paradigm that it follows may be slightly daunting. Here is a simplified version of how exactly the mechanism functions:

  • Like any other payment plugin, online stores add the buy now pay later feature to their payment page. Depending on the BNPL app (through careful consideration of the fees, profitability, interface, etc.) that the store has chosen, the coding might differ a little. However, such apps provide ample assistance during this process.
  • Once integrated into the website, consumers can find it as a payment option alongside others like credit cards, debit cards, net banking, etc.
  • Users will be required to click on the BNPL option, after which they will be directed to a separate page, wherein their profile will be established and verified through a few simple steps.
  • Following a marginal down payment, the customer will be able to complete the transaction, and the BNPL lender will make the rest of the payment.
  • Depending on the repayment scheme, the user will either make a lump sum payment at the end of an agreed-upon period or will pay small installments in a recurring period.
  • The eCommerce platform receives a discounted amount since the different forms the source of revenue for BNPL apps. This discount is provided for such services as remuneration for prospectively bringing in more customers and increasing the ticket purchase value.

Most eCommerce platforms today provide users with the BNPL option, as there is a growing awakening towards its numerous benefits. Stores simply need to follow the simple steps involved in adding it as a plugin, while users will be able to find it as a separate option on the payment gateway. The buy now pay later service market seems to be rapidly growing as well, as more and more apps enter the field and offer better services to both users and sellers.


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