Buy Now Pay Later (BNPL)

Buy Now Pay Later (BNPL) lets customers split a purchase into installments or pay later, while the BNPL provider pays the full amount upfront. Offering BNPL can raise average order value and conversion on eligible transactions.

Why Offer BNPL?

Higher AOV

Customers tend to spend more when they can spread payments over time.

Better Conversion

Paying over time removes friction at checkout, especially for high-ticket items.

No Credit Risk

The BNPL provider takes the credit risk and collects the installments. The provider pays the full amount upfront.

Supported Providers

Dodo Payments offers three BNPL providers. Each has its own countries, currencies, and minimum amount.

Klarna

Feature	Details
Availability	US and 18 European countries
Currencies	USD, EUR, GBP, DKK, NOK, SEK, CZK, PLN, CHF
Minimum	More than $50 ($50.01) on USD checkouts. For other currencies, Klarna’s own limits apply
Subscriptions	Yes

Supported Countries: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, United Kingdom, United States USD checkouts show Klarna only when the billing country is the US. Payment Options:

Pay in 4: Four interest-free payments.
Pay in 30 days: The full amount is due in 30 days.
Financing: Longer-term installment plans.

Klarna decides which options a customer sees based on country, currency, and amount.

Afterpay (Clearpay)

Feature	Details
Availability	US, UK
Currencies	USD, GBP
Minimum	More than $50 ($50.01) on USD checkouts. For GBP, Clearpay’s own limits apply
Subscriptions	No

USD checkouts show Afterpay only when the billing country is the US. Payment Options:

Pay in 4: Four interest-free payments, one every two weeks.

In the UK, Afterpay operates as Clearpay and uses the same API type, afterpay_clearpay.

Billie

Feature	Details
Availability	Global
Currencies	GBP
Minimum	None
Subscriptions	No

About Billie: Billie is a business-to-business (B2B) BNPL provider. It lets business buyers pay on invoice terms instead of at checkout. Payment Options:

Invoice Payment: The buyer pays within the agreed payment terms.
Flexible Terms: Payment schedules suited to businesses.

Configuration

To offer BNPL, include the provider’s type in allowed_payment_method_types, or omit the parameter to show every eligible method.

API Method Types

Type	Provider
`klarna`	Klarna
`afterpay_clearpay`	Afterpay / Clearpay
`billie`	Billie (B2B)

Example

This session offers Klarna and Afterpay to a US customer, with cards as a fallback:

// `client` is an initialized DodoPayments client.
const session = await client.checkoutSessions.create({
  product_cart: [{ product_id: 'pdt_123', quantity: 1 }],
  allowed_payment_method_types: [
    'klarna',
    'afterpay_clearpay',
    'credit',
    'debit'
  ],
  customer: {
    email: 'customer@example.com',
    name: 'Jane Smith'
  },
  billing_address: {
    country: 'US',
    zipcode: '10001'
  },
  return_url: 'https://example.com/success'
});

Always include credit and debit as fallbacks. Not every customer is eligible for BNPL, and transactions below a provider’s minimum don’t qualify. If no listed method is available, checkout fails.

Transaction Amount Limits

Dodo Payments applies these minimums to USD checkouts:

Provider	Minimum	Maximum
Klarna	$50.01	—
Afterpay	$50.01	—

For other currencies, the provider’s own limits apply. When a transaction falls outside a provider’s limits:

The BNPL option doesn’t appear at checkout.
No error is returned. The option doesn’t show.
Card payments remain available.

This is expected. Don’t include a BNPL method in allowed_payment_method_types if your product price is unlikely to fall within that provider’s range.

How Installments Work

The BNPL provider approves the customer, pays the full amount, and collects the installments from the customer: Key points:

The BNPL provider pays the full amount upfront, and it reaches you in your regular payout.
The BNPL provider handles credit risk and collections.
The customer repays the provider directly, typically in 4 installments.
If a customer misses an installment, the provider takes the loss, not you.

Testing

Use these details to test BNPL in test mode.

Klarna Test Data

Field	Approved	Denied
Date of Birth	07-10-1970	07-10-1970
First Name	Test	Test
Last Name	Person-us	Person-us
Email	customer@email.us	customer+denied@email.us
Street	Amsterdam Ave	Amsterdam Ave
House Number	509	509
City	New York	New York
State	New York	New York
Postal Code	10024-3941	10024-3941
Phone	+13106683312	+13106354386

On a USD checkout, the transaction must be more than $50 ($50.01) for Klarna to appear.

Afterpay Testing

Select Afterpay

Choose Afterpay in checkout and click Pay.

Test a Successful Payment

Use any valid email address and shipping address.

Test Failed Authentication

To test a failure, close the Afterpay modal on the redirect page. The payment status moves from requires_customer_action to requires_payment_method.

Best Practices

Target high-ticket items

BNPL works best for products priced $100 to $1,000, where paying over time matters most to customers.

Show installment amounts

“4 payments of $25” persuades more than “$100 with Klarna”. Show the per-payment amount where you can.

Don't force BNPL for low-value products

On USD checkouts, BNPL doesn’t appear for $50 or less. Under $100, most customers prefer cards. Promote BNPL on higher-priced items.

Collect billing address

BNPL providers use billing details for credit checks. Collect the full billing address at checkout.

Set clear expectations

Make clear to customers that the credit agreement is with Klarna or Afterpay, not with you.

Limitations

BNPL depends on the provider’s approval and on the checkout’s currency and country.

No Subscriptions

Afterpay and Billie don’t support recurring payments. Klarna supports subscriptions. For other subscription products, use cards or another method that supports recurring payments.

Credit-Based Approval

BNPL providers run a credit check when the customer selects them, and not every customer is approved. Approval depends on:

The customer’s credit history with the provider.
The transaction amount.
The customer’s location.

Currency & Country Mapping

Each currency is limited to its matching region:

Currency	Supported Countries
USD	United States only
EUR	Eurozone countries (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain)
GBP	United Kingdom only

Klarna’s other currencies (DKK, NOK, SEK, CZK, PLN, CHF) work in their own countries.

For example, a USD transaction shows BNPL options only to customers in the US. A EUR transaction works only for customers in the Eurozone countries above. A GBP transaction works only for customers in the UK.

Provider	Supported Currencies
Klarna	USD, EUR, GBP, DKK, NOK, SEK, CZK, PLN, CHF
Afterpay	USD (US), GBP (UK)

Troubleshooting

BNPL not appearing at checkout

Check:

Is the amount within the provider’s range? On USD checkouts, Klarna and Afterpay need more than $50 ($50.01).
Is the customer in a supported country? On USD checkouts, the billing country must be the US.
Does the provider support the currency?
Is the BNPL method included in allowed_payment_method_types?
For subscriptions, is the provider Klarna? Afterpay and Billie are one-time only.

Solution: Most often, the amount is below the minimum or above the maximum. Confirm that the amount falls within the provider’s range.

Customer denied by BNPL provider

Causes:

Insufficient credit history with the provider.
Too many active installment plans.
Failed identity verification.

Solution: Some denials are expected. Keep card payments available as a fallback. Don’t show customers the specific reason for a denial.

Payment stuck in pending

Cause: The customer didn’t finish the BNPL provider’s authentication flow.Solution: Wait for the payment.succeeded or payment.failed webhook for the final status. If the payment doesn’t complete, the customer can retry or use a different method.

Payment Methods Overview

All supported payment methods.

Checkout Guide

Create and customize checkout sessions.

Testing Process

Test data for every payment method.

Adaptive Currency

Currency support and conversion.

Getting Started

Features

Integrate

Merchant of Record

Miscellaneous

Why Offer BNPL?

Higher AOV

Better Conversion

No Credit Risk

Supported Providers

Klarna

Afterpay (Clearpay)

Billie

Configuration

API Method Types

Example

Transaction Amount Limits

How Installments Work

Testing

Klarna Test Data

Afterpay Testing

Best Practices

Limitations

No Subscriptions

Credit-Based Approval

Currency & Country Mapping

Troubleshooting

Payment Methods Overview

Checkout Guide

Testing Process

Adaptive Currency

​Why Offer BNPL?

Higher AOV

Better Conversion

No Credit Risk

​Supported Providers

​Klarna

​Afterpay (Clearpay)

​Billie

​Configuration

​API Method Types

​Example

​Transaction Amount Limits

​How Installments Work

​Testing

​Klarna Test Data

​Afterpay Testing

​Best Practices

​Limitations

​No Subscriptions

​Credit-Based Approval

​Currency & Country Mapping

​Troubleshooting

​Related Pages

Payment Methods Overview

Checkout Guide

Testing Process

Adaptive Currency

Why Offer BNPL?

Supported Providers

Klarna

Afterpay (Clearpay)

Billie

Configuration

API Method Types

Example

Transaction Amount Limits

How Installments Work

Testing

Klarna Test Data

Afterpay Testing

Best Practices

Limitations

No Subscriptions

Credit-Based Approval

Currency & Country Mapping

Troubleshooting

Related Pages