How buy now, pay later is transforming ecommerce

Amazon now offers it. PayPal has already revamped it. Klarna is growing quickly. The truth is out there: Buy now, pay later (BNPL) is here to stay. For those who don't know, BNPL allows shoppers to make a purchase and then pay for it later – either in one payment or instalments. Often, these payments are offered interest-free.

This point-of-sale financing isn’t new, but a wave of new providers is helping BNPL gain traction globally. Its market size was €80 billion last year. By 2030, data suggests that figure will rise to €3.5 trillion.


The benefits of buy now, pay later

For online retailers, buy now, pay later offers:

– Higher conversion rates

– The ability to attract more shoppers

– Higher average order value (AOV)

– Better customer experience

– Flexibility when selling high-value goods

Ecommerce business owners like debit payments, but shoppers don’t always have the available funds to pay for what they want when they want it (so might instead want to pay for a purchase when they have received their next paycheck, for instance). By allowing more flexibility, BNPL can increase conversion rates and AOV, attract new customers who may prefer to use BNPL, and help to deliver a better customer experience. Its flexibility also allows online retailers to sell high-value goods more easily, as customers can spread out payments over several weeks or purchase something knowing that they will have the spending power to pay for it at a later date.

When using payments as a marketing tool, BNPL is a valuable resource for increasing conversion rates and AOV. Promoting BNPL as a payment method early in the customer journey boosts a consumer’s buying power by letting them know they can pay later. This is an effective way to increase a shopper’s likelihood to buy.


For shoppers, buy now, pay later offers:

– More flexibility

– Reduced interest payments

– Can facilitate bigger purchases

– Ease of use

There are many reasons why BNPL is becoming more popular with consumers, but undoubtedly one of the biggest is its flexibility. Shoppers can choose to pay in instalments and often decide how long they have to pay their balance. Allowing the purchase of more expensive goods is another reason it’s popular, and younger BNPL users say they prefer it to credit cards. In fact, a survey of more than 1,800 people found that the top reasons consumers use BNPL is to avoid using credit cards and to purchase high-value goods.

Is buy now, pay later bad?

The question might seem simple, but it is asked more as BNPL becomes more popular. Why? Because – like credit cards, overdrafts, and loans – it is a form of debt. Saving up money to make purchases is always a good idea, but not something that everyone can do. And, sometimes, getting into debt is unavoidable (like when you need to make costly emergency repairs to a broken boiler or leaky roof, for example). Debt isn’t a bad thing, but merely a financial tool that needs responsible management. Find out more about how to help consumers use BNPL responsibly.

Adding buy now, pay later to your website

Offering your customers their preferred payment method is a great way to increase conversation rates and gain their trust. And the benefits of buy now, pay later schemes are plentiful – more sales, increased AOV, better customer experience. And, as it seems that BNPL schemes are here to stay, adding one (or more) to your website is now more crucial than ever. Otherwise, your website visitors might go elsewhere when they can’t use BNPL to make a purchase.


With Mollie, you can add Klarna: Pay Later to your website quickly and start processing payments right away. You only pay for successful transactions with no hidden fees. Want to know more? Contact us to discover how our effortless payments solution can help grow your business, or see more ecommerce tips to help you excel online.

Get better payments now.