> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dodopayments.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Buy Now Pay Later (BNPL)

> Offer Klarna, Afterpay, Billie, and Sunbit installment payments to increase average order value and conversion. Learn about eligibility, minimum amounts, and testing.

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.

## Why Offer BNPL?

<CardGroup cols={3}>
  <Card title="Higher AOV" icon="chart-line">
    Customers spend more when they can spread payments over time. Average order value increases 20-50%.
  </Card>

  <Card title="Better Conversion" icon="percent">
    Removing payment friction at checkout. Conversion rates improve 10-30% for high-ticket items.
  </Card>

  <Card title="Zero Risk" icon="shield-check">
    BNPL providers handle credit risk and collections. You receive full payment upfront.
  </Card>
</CardGroup>

## Supported Providers

### Klarna

| Feature           | Details                                          |
| :---------------- | :----------------------------------------------- |
| **Availability**  | US + 19 European countries                       |
| **Currencies**    | USD, EUR, GBP, DKK, NOK, SEK, CZK, RON, PLN, CHF |
| **Minimum**       | \$50.01 (or equivalent)                          |
| **Subscriptions** | No                                               |

**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

### Afterpay (Clearpay)

| Feature           | Details                 |
| :---------------- | :---------------------- |
| **Availability**  | US, UK                  |
| **Currencies**    | USD, GBP                |
| **Minimum**       | \$50.01 (or equivalent) |
| **Subscriptions** | No                      |

**Payment Options:**

* **Pay in 4** — 4 interest-free payments every 2 weeks

<Note>
  In the UK, Afterpay operates as "Clearpay" but uses the same API type (`afterpay_clearpay`).
</Note>

### Billie

| Feature           | Details |
| :---------------- | :------ |
| **Availability**  | Global  |
| **Currencies**    | GBP     |
| **Minimum**       | None    |
| **Subscriptions** | No      |

**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

### Sunbit

| Feature           | Details     |
| :---------------- | :---------- |
| **Availability**  | US          |
| **Currencies**    | USD         |
| **Minimum**       | \$60.00     |
| **Maximum**       | \$19,999.00 |
| **Subscriptions** | No          |

**Payment Options:**

* **Installment Financing** — Split purchases into manageable monthly payments

## Configuration

### API Method Types

| Type                | Provider            |
| :------------------ | :------------------ |
| `klarna`            | Klarna              |
| `afterpay_clearpay` | Afterpay / Clearpay |
| `billie`            | Billie (B2B)        |
| `sunbit`            | Sunbit              |

### Example

```javascript theme={null}
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: 'customer@example.com',
    name: 'Jane Smith'
  },
  billing_address: {
    country: 'US',
    zipcode: '10001'
  },
  return_url: 'https://example.com/success'
});
```

<Warning>
  Always include `credit` and `debit` as fallbacks. Not all customers are eligible for BNPL, and transactions below the provider's minimum won't qualify.
</Warning>

## Transaction Amount Limits

Each BNPL provider has its own minimum (and sometimes maximum) transaction amount:

| Provider | Minimum | Maximum     |
| :------- | :------ | :---------- |
| Klarna   | \$50.01 | —           |
| Afterpay | \$50.01 | —           |
| Sunbit   | \$60.00 | \$19,999.00 |

Transactions outside these thresholds:

* 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 a BNPL method in `allowed_payment_method_types` if your product price is unlikely to fall within that provider's supported range.

## How Installments Work

```mermaid theme={null}
sequenceDiagram
    participant Customer
    participant Checkout
    participant Dodo
    participant BNPL Provider
    
    Customer->>Checkout: Select Klarna/Afterpay
    Checkout->>Dodo: Process payment
    Dodo->>BNPL Provider: Create installment plan
    BNPL Provider->>Customer: Approve/Deny based on credit
    BNPL Provider->>Dodo: Full payment (if approved)
    Dodo->>You: Payout (full amount)
    BNPL Provider->>Customer: Collect installments over time
```

**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

## Testing

### Klarna Test Data

Use these details in test mode:

| 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](mailto:customer@email.us) | [customer+denied@email.us](mailto: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                                                |

<Note>
  Transaction must be at least \$50 for Klarna to appear as an option.
</Note>

### Afterpay Testing

<Steps>
  <Step title="Select Afterpay">
    Choose Afterpay in checkout and click Pay.
  </Step>

  <Step title="Successful payment">
    Use any valid email and shipping address.
  </Step>

  <Step title="Failed authentication">
    To test failure: close the Afterpay modal on the redirect page. Payment status transitions to `requires_payment_method`.
  </Step>
</Steps>

### Sunbit Testing

<Steps>
  <Step title="Set billing country and currency">
    Ensure the checkout session has `billing_address.country` set to `US` and `billing_currency` set to `USD`.
  </Step>

  <Step title="Use a qualifying amount">
    Set the transaction amount between **$60.00 and $19,999.00**. Sunbit will not appear outside this range.
  </Step>

  <Step title="Select Sunbit">
    Choose Sunbit at checkout and complete the financing application flow in the Sunbit modal.
  </Step>

  <Step title="Test failure">
    To simulate a declined application, close the Sunbit modal before completing the flow. The payment transitions to `requires_payment_method`.
  </Step>
</Steps>

<Note>
  Sunbit is only available for US customers paying in USD with a transaction amount between $60.00 and $19,999.00.
</Note>

## Best Practices

<AccordionGroup>
  <Accordion title="Target high-ticket items">
    BNPL works best for products $100-$1000. The value proposition of "pay over time" is most compelling in this range.
  </Accordion>

  <Accordion title="Show installment amounts">
    "4 payments of $25" is more compelling than "$100 with Klarna". Display the per-payment amount when possible.
  </Accordion>

  <Accordion title="Don't force BNPL for low-value products">
    Under $50, BNPL won't appear anyway. Under $100, most customers prefer cards. Focus BNPL promotion on higher-ticket items.
  </Accordion>

  <Accordion title="Collect billing address">
    BNPL providers require billing information for credit checks. Ensure your checkout collects full address details.
  </Accordion>

  <Accordion title="Set clear expectations">
    Customers should understand they're entering a credit agreement with Klarna/Afterpay, not with you.
  </Accordion>
</AccordionGroup>

## Limitations

### No Subscriptions

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

### 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

### Currency & Country Mapping

Each currency is restricted to its corresponding region:

| Currency | Supported Countries                                                                                                                                                                                        |
| :------- | :--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **USD**  | United States only                                                                                                                                                                                         |
| **EUR**  | All supported European countries (Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland) |
| **GBP**  | United Kingdom and all supported European countries                                                                                                                                                        |

Other Klarna-supported currencies (DKK, NOK, SEK, CZK, RON, PLN, CHF) work in their respective countries.

<Info>
  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.
</Info>

| Provider | Supported Currencies                             |
| :------- | :----------------------------------------------- |
| Klarna   | USD, EUR, GBP, DKK, NOK, SEK, CZK, RON, PLN, CHF |
| Afterpay | USD (US), GBP (UK)                               |
| Sunbit   | USD (US)                                         |

## Troubleshooting

<AccordionGroup>
  <Accordion title="BNPL not appearing at checkout">
    **Check:**

    1. Transaction amount within the provider's supported range? (Klarna/Afterpay: min $50.01; Sunbit: $60.00–\$19,999.00)
    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 the minimum or above the maximum. Verify the amount falls within the provider's supported range.
  </Accordion>

  <Accordion title="Customer denied by BNPL provider">
    **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.
  </Accordion>

  <Accordion title="Payment stuck in pending">
    **Cause:** Customer didn't complete authentication flow with BNPL provider.

    **Solution:** Payment will timeout and fail. Customer can retry or use a different method.
  </Accordion>
</AccordionGroup>

## Related Pages

<CardGroup cols={2}>
  <Card title="Payment Methods Overview" icon="credit-card" href="/features/payment-methods">
    See all supported payment methods.
  </Card>

  <Card title="Checkout Guide" icon="book" href="/developer-resources/checkout-session">
    Complete checkout implementation guide.
  </Card>

  <Card title="Testing Process" icon="flask" href="/miscellaneous/testing-process">
    All test data for payment methods.
  </Card>

  <Card title="Adaptive Currency" icon="globe" href="/features/adaptive-currency">
    Currency support and conversion.
  </Card>
</CardGroup>