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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 & Country Mapping

Each currency is restricted to its corresponding region:
CurrencySupported Countries
USDUnited States only
EURAll supported European countries (Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland)
GBPUnited Kingdom and all supported European countries
Other Klarna-supported currencies (DKK, NOK, SEK, CZK, RON, PLN, CHF) work in their respective countries.
For example, a USD transaction will only show BNPL options to customers in the US. A EUR transaction will show BNPL options across all supported European countries. A GBP transaction will show BNPL options to customers in the UK and all supported European countries.
ProviderSupported Currencies
KlarnaUSD, EUR, GBP, DKK, NOK, SEK, CZK, RON, PLN, CHF
AfterpayUSD (US), GBP (UK)

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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.