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Buy Now Pay Later (BNPL)

Buy Now Pay Later (BNPL) payment has recently gained significant popularity.

It offers consumers the flexibility to make purchases instantly and pay for them later in installments, typically interest-free, depending on their credit or purchasing power.

Let’s look at all the payment options available for Buy Now Pay Later (BNPL).

Supported BNPL Payment Methods

Stripe Gateway for WooCommerce supports the following BNPL payment methods:

1. Affirm

Affirm is one of the most popular BNPL service providers in the United States, serving over 17.6 million users and facilitating more than $20 billion in Gross Merchandise Volume (GMV) annually.

Payment plans available:

  • 4 interest-free installments every two weeks (available as per shopper’s credit)
  • Monthly installment payment plans for up to 36 months (interests usually vary from 0-36% APR)
👉 Check out our detailed guide on setting up WooCommerce Affirm payments in your store.

2. Afterpay

Afterpay, also known as Clearpay in the UK, is an Australian financial technology firm with over 5 million active customers and partners with over 15,000 merchants worldwide.

Payment options:

  • 4 interest-free payment installments
  • Monthly payment plans such as 3, 6, and 12 months
👉 Refer to our step-by-step guide on setting up Afterpay payments in your store.

3. Klarna

Klarna is a Swedish fintech company established in 2005. It offers flexible shopping solutions with an option to buy now and pay later to 150 million+ active users globally.

The company collaborates with over 500,000 merchants across 45 countries.

Available payment options:

  • 30 days
  • 3 installments
  • Installment plans of 6, 12, 24, and 36 months with flexible payments
👉 Check out our step-by-step article on setting up WooCommerce Klarna payments in your store.

👉 Refer to Stripe's official document to check BNPL payment methods including repayment options, transaction limit, and more.

List of Supported Countries

Here is a list of countries that the BNPL payment gateways are compatible with:

1. Affirm

  • United States of America
  • Canada

2. Afterpay

  • Australia
  • Canada
  • New Zealand
  • United Kingdom (known as Clearpay)
  • United States of America

3. Klarna

  • Australia
  • Austria
  • Belgium
  • Canada
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Ireland
  • Italy
  • Latvia
  • Lithuania
  • Netherlands
  • New Zealand
  • Norway
  • Poland
  • Portugal
  • Slovakia
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • United Kingdom
  • United States of America

BNPL Payment Activation from Stripe Dashboard

Log in to your Stripe account and navigate to Settings ⇨ Payment Methods.

Go to Stripe settings - Payment methods

Next, enable the BNPL payment methods (Affirm, Afterpay and Klarna) you want to have in your WooCommerce store.

Enable BNPL payment methods such as affirm, afterpay or clearpay and klarna from Stripe account dashboard

This is how you can enable BNPL payment methods from your Stripe account.

Enable BNPL Payments in WooCommerce

Navigate to WooCommerce ⇨ Settings ⇨ Payments.

Scroll down and enable the Buy Now Pay Later methods you want to have in your WooCommerce store.

For example, we have enabled all three BNPL payment gateways in our store.

Next, hit ‘Manage’ next to these payment methods.

Enable BNPL methods in WooCommerce from payment settings

Configure your BNPL payment option such as:

  • Enable Affirm/Afterpay/Klarna - Check the box to enable your BNPL payment methods in your WooCommerce store.
  • Title - The title of your payment gateway that gets displayed in your store.
  • Description - Description for your payment option that will appear below the title.
  • Message location - Show the BNPL message location on different pages of your online store, such as the product page, cart page, shop page, etc.
  • Selling location(s) - Set this option to allow this payment method to include specific or all selling locations.
  • Sell to specific countries - Assign the countries you want to sell in and display this payment method. However, please note that Klarna, Affirm and Afterpay serve specific countries. Thus, we recommend you not to make any changes to this option.

Once done, hit the ‘Save changes’ button.

Testing Buy Now Pay Later (BNPL) Payments in WooCommerce

Put your website into Stripe payment test mode inside the WooCommerce Stripe Gateway settings.

Next, add an item to the cart and head to the checkout page.

Fill out the shipping details, and your BNPL payment methods will start displaying in your store.

Let’s choose 'Klarna' and proceed.

Head to the checkout page and you'll see all the BNPL payment options displaying there

You’ll be directed to the Klarna authentication screen to check your loan eligibility or purchasing power.

Enter the phone number and verify it by entering the 6-digit verification code.

Verify your phone

Next, choose a plan from the available flexible payment options.

Select payment schedule

Once you’ve selected your payment plan, it’ll list the total amount you need to pay each month for the duration you chose. 

Click ‘Continue’ to proceed further.

Find out amount you need to pay each month

Review the payment schedule in the final step - this is the small amount you’ll have to pay in the coming months.

Once you’ve reviewed everything, click on the ‘Pay with Klarna’ button to place your order.

Review your payment cycle

You’ll now be redirected to the thank you page with order successfully placed.

You'll direct to the thank you page after successful order placement

This is how you can test the Buy Now Pay Later (BNPL) payment method in WooCommerce.