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Buy Now Pay Later (BNPL) lets customers split purchases into interest-free installments, increasing average order value by 20-50% and conversion rates by 10-30% for eligible transactions.

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Why Offer BNPL?

Higher AOV

Customers spend more when they can spread payments over time. Average order value increases 20-50%.

Better Conversion

Removing payment friction at checkout. Conversion rates improve 10-30% for high-ticket items.

Zero Risk

BNPL providers handle credit risk and collections. You receive full payment upfront.

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Supported Providers

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Klarna

FeatureDetails
AvailabilityUS + 19 European countries
CurrenciesUSD, EUR, GBP, DKK, NOK, SEK, CZK, RON, PLN, CHF
Minimum$50.01 (or equivalent)
SubscriptionsNo
Supported Countries: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, United Kingdom, United States Payment Options:
  • Pay in 4 — Split into 4 interest-free payments
  • Pay in 30 days — Full payment due in 30 days
  • Financing — Longer-term installment plans

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Afterpay (Clearpay)

FeatureDetails
AvailabilityUS, UK
CurrenciesUSD, GBP
Minimum$50.01 (or equivalent)
SubscriptionsNo
Payment Options:
  • Pay in 4 — 4 interest-free payments every 2 weeks
In the UK, Afterpay operates as “Clearpay” but uses the same API type (afterpay_clearpay).

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Billie

FeatureDetails
AvailabilityGlobal
CurrenciesGBP
MinimumNone
SubscriptionsNo
About Billie: Billie is a B2B Buy Now Pay Later solution that enables businesses to offer flexible payment terms to their customers. It’s designed for business-to-business transactions where buyers need invoice-based payment options. Payment Options:
  • Invoice Payment — Pay within agreed payment terms
  • Flexible Terms — Business-friendly payment schedules

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Configuration

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API Method Types

TypeProvider
klarnaKlarna
afterpay_clearpayAfterpay / Clearpay
billieBillie (B2B)

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Example

const session = await client.checkoutSessions.create({
  product_cart: [{ product_id: 'prod_123', quantity: 1 }],
  allowed_payment_method_types: [
    'klarna',
    'afterpay_clearpay',
    'credit',
    'debit'
  ],
  customer: {
    email: '[email protected]',
    name: 'Jane Smith'
  },
  billing_address: {
    country: 'US',
    zipcode: '10001'
  },
  return_url: 'https://example.com/success'
});
Always include credit and debit as fallbacks. Not all customers are eligible for BNPL, and transactions below $50.01 won’t qualify.

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Minimum Transaction Amount

Both Klarna and Afterpay require a minimum of $50.01 USD (or equivalent in supported currencies). Transactions below this threshold:
  • BNPL options won’t appear at checkout
  • No error is thrown — options simply don’t show
  • Card payments remain available
This is expected behavior. Don’t include BNPL in allowed_payment_method_types for products under $50.

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How Installments Work

Key points:
  • You receive the full payment upfront from the BNPL provider
  • The BNPL provider handles credit risk and collections
  • Customer pays the provider directly over 4 installments (typically)
  • No chargebacks from installment failures — that’s the provider’s risk

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Testing

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Klarna Test Data

Use these details in test mode:
FieldApprovedDenied
Date of Birth07-10-197007-10-1970
First NameTestTest
Last NamePerson-usPerson-us
Email[email protected][email protected]
StreetAmsterdam AveAmsterdam Ave
House Number509509
CityNew YorkNew York
StateNew YorkNew York
Postal Code10024-394110024-3941
Phone+13106683312+13106354386
Transaction must be at least $50 for Klarna to appear as an option.

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Afterpay Testing

1

Select Afterpay

Choose Afterpay in checkout and click Pay.
2

Successful payment

Use any valid email and shipping address.
3

Failed authentication

To test failure: close the Afterpay modal on the redirect page. Payment status transitions to requires_payment_method.

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Best Practices

BNPL works best for products 100−100-1000. The value proposition of “pay over time” is most compelling in this range.
“4 payments of 25"ismorecompellingthan"25" is more compelling than "100 with Klarna”. Display the per-payment amount when possible.
Under 50,BNPLwon′tappearanyway.Under50, BNPL won't appear anyway. Under 100, most customers prefer cards. Focus BNPL promotion on higher-ticket items.
BNPL providers require billing information for credit checks. Ensure your checkout collects full address details.
Customers should understand they’re entering a credit agreement with Klarna/Afterpay, not with you.

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Limitations

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No Subscriptions

BNPL payment methods do not support recurring payments. For subscription products, use cards or other recurring-compatible methods.

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Credit-Based Approval

BNPL providers perform instant credit checks. Not all customers will be approved. Approval rates vary by:
  • Customer credit history with the provider
  • Transaction amount
  • Customer location

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Currency Restrictions

ProviderCurrencies
KlarnaUSD, EUR, GBP, DKK, NOK, SEK, CZK, RON, PLN, CHF
AfterpayUSD, GBP

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Troubleshooting

Check:
  1. Transaction amount at least $50.01?
  2. Customer location in supported country?
  3. Currency supported by BNPL provider?
  4. BNPL method included in allowed_payment_method_types?
Solution: Most commonly, the transaction is below minimum. Verify amount meets $50.01 threshold.
Causes:
  • Insufficient credit history with provider
  • Too many active installment plans
  • Failed identity verification
Solution: This is expected for some customers. Ensure card fallbacks are available. Don’t expose specific denial reasons.
Cause: Customer didn’t complete authentication flow with BNPL provider.Solution: Payment will timeout and fail. Customer can retry or use a different method.

Payment Methods Overview

See all supported payment methods.

Checkout Guide

Complete checkout implementation guide.

Testing Process

All test data for payment methods.

Adaptive Currency

Currency support and conversion.