Category: BNPL

Using BNPL to Survive the Tariff and De Minimis Storm
The economy right now is a minefield for businesses.

New tariffs, the removal of the de minimis rule, and shifting supply chains have sent costs soaring and consumer confidence plummeting.

A slightly silver lining is available, however. Buy Now, Pay Later (BNPL) and payment installment plans are two payment options that can help you weather the storm. These payment solutions can help businesses offset the impact of tariffs and the end of de minimis.

MINIMIZE CHARGEBACKS

The Tariff and De Minimis Mess: What’s Happening?

Tariffs-essentially taxes on imported goods-surged to historic highs. The U.S. average effective tariff rate jumped to over 22%, with some goods from China facing rates as high as 125%.

These costs ripple through supply chains, raising prices for everything from electronics to apparel. The result? Higher prices for consumers, squeezed margins for businesses, and a significant drag on economic growth.

De minimis is a trade rule that allowed imports valued below $800 to enter the U.S. duty-free. For years, this loophole fueled the rise of direct-to-consumer e-commerce. It let platforms like Shein and Temu bypass hefty import duties and offer rock-bottom prices.

But the U.S. chose to close the de minimis exemption for shipments from China, with a 120% duty or a $100–$200 flat fee per package now imposed.

The result is a huge cost increase for small businesses and consumers alike, as well as massive administrative headaches for customs authorities.

Key Impacts of These Changes
- Soaring import costs for businesses.
- Disrupted supply chains, with delays and backlogs at ports.
- Small businesses, which relied on de minimis for affordable inventory, now face higher prices or risk losing customers.
- Consumers are more price-sensitive, with reduced discretionary spending power.
KEEP CONVERSIONS HIGH

BNPL and Installments Ease the Pain for Businesses and Consumers

Buy Now, Pay Later (BNPL) and payment installment plans allow customers to split their purchases into smaller, manageable payments over time-often with no interest or fees if paid on schedule.

While BNPL has been a staple in consumer finance for years, its value continues to skyrocket in the current tariff and de minimis environment.

How BNPL Helps Businesses Navigate Tariffs and De Minimis Fallout

1. Cushioning Sticker Shock

Tariffs and the end of de minimis have forced many businesses to raise prices, risking a drop in sales as customers balk at higher costs.

By offering BNPL or installment plans, businesses can soften the blow. Customers see a lower upfront payment, making higher-priced goods feel more accessible-even if the total cost has increased due to tariffs.

2. Protecting Sales Volumes

Economic uncertainty and price hikes make consumers hesitant to spend. BNPL options reduce this friction, encouraging purchases that might otherwise be delayed or abandoned.

Businesses report higher conversion rates and increased average order values when BNPL is available.

3. Improving Cash Flow

BNPL providers typically pay businesses upfront for the full purchase amount, while collecting installment payments from customers over time. This arrangement ensures steady cash flow for merchants, even as customers enjoy flexible payment terms.

4. Expanding Customer Base

With tariffs disproportionately impacting lower- and middle-income households, affordability is key. BNPL opens doors for customers who might not have the cash-or credit-to pay full price at checkout, broadening a business’s reach.

OFFER WHITE-LABEL BNPL AT CHECKOUT

Real-World Applications: Who’s Using BNPL to Survive?

Let’s take a look at some industries who thrive by offering BNPL and installment plans at checkout.

E-commerce Retailers

Online stores selling tariff-hit goods-like electronics, apparel, and home goods-are leveraging BNPL to maintain sales. By spreading out payments, they make higher prices palatable to customers who are feeling the pinch from tariffs and the loss of de minimis.

Manufacturers and Wholesalers

Installment plans aren’t just for consumers. Manufacturers facing higher input costs due to tariffs can offer payment terms to distributors and retailers, easing cash flow pressures throughout the supply chain.

Service Providers

Businesses that rely on imported equipment or materials-now more expensive due to tariffs-can use payment plans to help clients absorb increased costs, keeping projects moving forward.

OFFER THE PAYMENT METHOD YOUR CUSTOMERS WANT

Practical Strategies for Implementing BNPL and Installment Plans

1. Integrate BNPL at Checkout

Make BNPL options visible and easy to use at checkout. Leading providers like Afterpay, Klarna, and Affirm offer seamless integrations for e-commerce platforms.

2. Use Installment Plans for High-Value or Tariffed Items

Highlight installment options on products most affected by tariffs or de minimis changes. This can help move inventory that might otherwise stagnate due to price sensitivity.

3. Communicate Transparently

Explain price increases and the value of flexible payment options. Customers appreciate honesty about the impact of tariffs and de minimis changes, and will value your efforts to help them manage costs.

4. Monitor Sales Tax Implications

BNPL can complicate sales tax collection, as payments are spread over time. Ensure your systems are set up to collect and remit taxes accurately for installment transactions.

5. Leverage BNPL in Marketing

Promote BNPL options in your advertising and email campaigns. Emphasize affordability and flexibility to attract budget-conscious shoppers.

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The Bottom Line: BNPL as a Lifeline in a High-Tariff World

The combination of new tariffs and the removal of the de minimis rule has created challenges for businesses of all sizes. Costs are up, supply chains are strained, and consumer demand is shaky.

In this environment, BNPL and payment installment plans are more than just a convenience.

By making higher prices manageable, protecting sales, and improving cash flow, BNPL helps businesses stay resilient and competitive. As the trade landscape continues to evolve, companies that embrace flexible payment solutions will be best positioned to survive and even thrive amid the tariff and de minimis mess.

Key Takeaway

If your business is feeling the squeeze from tariffs or the end of de minimis, now is the time to explore BNPL and installment plans. These tools can help you maintain sales, support your customers, and keep your business moving forward in an unpredictable global market.

Stay agile, stay flexible, and let BNPL be your buffer against the shocks of global trade.

OFFER INSTALLMENT PLANS TODAY
April 30, 2025
BNPL Payment Methods Are a HUGE Travel Industry Trend
Travel makes up a significant portion of Buy Now, Pay Later (BNPL) purchases, and for good reason.

BNPL in the travel industry allows businesses to increase sales and travelers to fulfill their vacation dreams. The global Travel Now Pay Later market will reach USD 98.6 billion by 2033.

The payment method enables travelers to book trips immediately, spreading payments over time and making travel more accessible. No burden of upfront costs.

For travel businesses, offering flexible payment options leads to higher conversion rates, increased booking values, and improved customer retention.

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The Rise of BNPL in Travel

Travelers love the flexibility and convenience BNPL offers, while businesses reap the rewards of increased bookings and customer satisfaction

Imagine planning your dream vacation without the stress of emptying your bank account in one go. That’s the magic of BNPL for travelers. It allows them to book flights, hotels, and experiences without the immediate financial pinch.

Travelers can spread the cost over time, making those bucket-list trips suddenly within reach. Plus, it’s a lifesaver for last-minute bookings or unexpected travel needs.

Benefits for Travel Businesses

Now, let’s talk about why businesses are falling head over heels for BNPL flights and travel payment options.

Skyrocketing Sales

BNPL is a powerful sales booster. Travel companies offering BNPL options see their conversion rates soar. When customers can pay in bite-sized chunks, they’re more likely to hit that “Book Now” button.

Bigger Bookings, Better Revenue

Here’s a fun fact: travelers using BNPL tend to spend more. Without the constraint of paying the full amount upfront, customers often upgrade their travel packages or add extra experiences to their itinerary.

Happy Customers, Repeat Business

BNPL creates a win-win situation. Travelers get the trips they want, and businesses get satisfied customers who are more likely to return. It’s like planting seeds for future bookings.

Competitive Edge

In the crowded travel market, offering BNPL can set a business apart from the competition. Especially younger generations who are used to flexible payment options in other areas of their lives, BNPL is an expected payment option.

The rise of BNPL in travel reshapes how people plan and book their adventures. For travel businesses, it’s an opportunity to tap into a growing market of travelers eager for flexible payment options. So, if you’re in the travel biz and haven’t hopped on the BNPL train yet, it might be time to consider punching your ticket.

OFFER MORE PAYMENT OPTIONS

BNPL vs Payment Installment Plans

When it comes to flexible payment options, Buy Now, Pay Later and payment installment plans seem similar at first glance. However, they have distinct features that set them apart.

Let’s break down the key differences and explore why installments might be a more secure option for your business.

Definition and Structure

BNPL allows customers to make purchases and pay for them at a future date, typically in short-term installments. It’s often integrated into the payment flow of online shops, providing instant credit at the point of sale.

Payment installment plans, on the other hand, refer to any bill paid off over time in consecutive payments. These can be offered directly by merchants or through third-party processors.

Credit Risk and Approval Process

One significant difference lies in who bears the credit risk. With BNPL, the BNPL provider typically assumes the credit risk. This can lead to less stringent approval processes, potentially attracting younger customers with less established credit histories.

Installment plans, especially those offered through traditional banks or credit cards, often involve a more thorough credit check. The credit risk is usually borne by the issuing bank and coupled with a stringent Know Your Customer process.

Interest and Fees

Both BNPL and installment plans often offer interest-free options if paid within the agreed timeframe. However, BNPL services might charge late fees for missed payments. Traditional installment loans usually have interest charges built into the repayment structure.

Repayment Period

BNPL typically involves shorter repayment periods, often within weeks or a few months. Installment plans can span longer timeframes, allowing for more extended repayment schedules.

Why Installments Might Be More Secure for Your Business
1. Reduced Credit Risk: With traditional installment plans, your business is less likely to bear the brunt of credit defaults.
2. More Comprehensive Vetting: The stricter approval process for installment plans can lead to a more financially stable customer base.
3. Predictable Cash Flow: Installment plans often provide more structured payments over a longer period, contributing to more stable cash flow.
4. Lower Risk of Impulsive Overspending: The more thorough approval process for installment plans may discourage impulsive purchases, potentially leading to fewer returns and chargebacks.
5. Established Regulatory Framework: Traditional installment plans often operate within well-established regulatory frameworks, providing clearer guidelines and protections for both businesses and consumers.
By offering the ability to pay in installments, you provide your customers with financial flexibility and maintain a more secure position for your business. This approach helps boost sales, increases customer loyalty, and creates a win-win situation.

Installment plans are basically a white-label BNPL. In general, customers won’t be able to tell the difference.

ADD PAYMENT INSTALLMENTS TO YOUR STORE

Boosting Conversions with BNPL and Installments

Travel businesses can significantly increase their sales and customer base by offering flexible payment options. Let’s explore how these payment methods can boost conversions and improve your bottom line.

Increased Accessibility for Travelers

BNPL and installment plans make travel more accessible to a wider audience. By breaking down travel expenses into smaller, manageable payments, customers who might hesitate to book can afford their vacations.

This increased accessibility can lead to:
- Higher booking rates for luxury or high-end travel packages
- More spontaneous travel decisions, as customers don’t need to save up the full amount upfront
- Increased travel frequency, as customers can manage multiple trips within their budget
Higher Conversion Rates

Offering flexible payment options can dramatically reduce cart abandonment rates, which are notoriously high in the travel industry. When customers see a $5,000 vacation broken down into $500 monthly installments, it suddenly becomes much more attainable.

This psychological shift can lead to:
- Lower hesitation at checkout
- Increased willingness to upgrade travel packages or add extra experiences
- Higher overall conversion rates for your travel business
Larger Booking Values

BNPL and installment options often encourage customers to spend more on their travel experiences. Without the constraint of paying the full amount upfront, travelers tend to:
- Upgrade their accommodations or flight classes
- Add extra activities or experiences to their itinerary
- Extend their trip duration
For example, Atome, a BNPL provider, reports that customers are more likely to consider options beyond the lowest-priced tickets when BNPL is available.

With BNPL and installments, your travel business can boost conversions, increase booking values, and build stronger customer relationships. As these payment methods continue to gain popularity, they’re becoming an essential tool for growth in the travel industry.

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Get Started with BNPL and Installments

The travel industry is embracing a new era of financial flexibility, and BNPL along with installment plans are leading the charge. These payment options are powerful tools that can transform your travel business.

By offering BNPL and installment plans, you’re not just making travel more accessible. You’re opening doors to higher conversion rates, bigger bookings, and happier customers. When travelers can spread their payments, they’re more likely to book that dream vacation or add those extra experiences.

But it’s not just about boosting sales. These flexible payment options can set your business apart in a crowded market. They show that you understand and cater to your customers’ financial needs, building trust and loyalty.

The future of travel payments is flexible, and it’s here now. Don’t let your business get left behind. Embrace these payment innovations, and watch your travel business soar to new heights. Your customers – and your bottom line – will thank you.

OPEN YOUR TRAVEL MERCHANT ACCOUNT
March 17, 2025
Buy Now Pay Later Car Rental Will Revolutionize Your Business
The recent partnership between Klarna and CarTrawler marks a monumental shift in the car rental industry, bringing the convenience and flexibility of Buy Now Pay Later (BNPL) options to customers worldwide.

This innovative approach is not just a win for travelers seeking more accessible payment methods but also a golden opportunity for car rental and travel merchants to revolutionize their businesses.

The Klarna-Cartrawler summary.

Summary of the Klarna-CarTrawler Partnership

In a groundbreaking move, Klarna, a global payments and shopping service, has joined forces with CarTrawler, a leading B2B provider of car rental and mobility solutions. This partnership ushers in a new era in the car rental industry, offering interest-free Buy Now Pay Later (BNPL) options to consumers on CarTrawler’s expansive network of 250 partner travel websites.

This collaboration signifies Klarna’s strategic entry into the $122 billion car rental market, a domain traditionally dominated by credit card payments. The initiative aims to democratize access to car rentals, enabling customers to book their preferred vehicle without the immediate financial burden.

Klarna’s BNPL solution is already operational on 25 airline websites across 15 countries, demonstrating its growing influence in the travel sector. By leveraging CarTrawler’s extensive reach, which aggregates over 2,000 car rental and mobility suppliers for airlines and online travel agencies, Klarna can significantly expand its services, providing a more accessible and flexible payment option to a wider audience.

The partnership is not just a win for consumers but also a strategic move for the car rental industry. It reflects a shift towards more consumer-friendly payment methods, addressing the changing needs and preferences of travelers. The collaboration between Klarna and CarTrawler is a testament to the evolving landscape of payments in travel, setting a new standard for convenience and flexibility in car rentals.

From credit to debit and bnpl.

The Evolution of Payment Options in Car Rentals

The car rental industry has witnessed a significant evolution in payment options over the years, marking a shift from traditional methods to more innovative, customer-centric solutions. Traditionally, car rentals have relied heavily on credit and debit card payments, often requiring substantial pre-authorizations or deposits, which could be a financial strain for many customers.

This traditional model, while reliable, has not always aligned with the changing financial capabilities and preferences of modern consumers. Issues such as credit checks, high upfront payments at the time of rental, and limited flexibility have often deterred potential renters, particularly younger consumers and those without credit cards.

Currently, car rental companies offer a prepaid “pay now” option that might offer a discount alongside a “pay a little now, then pay more at pick up” option. While we are referring to services mostly in the USA, the same rings true for Europe as well.

Enter the era of Buy Now Pay Later (BNPL) services. Providers like Klarna, Affirm, and others are transforming the payment landscape in the car rental industry. BNPL offers a more inclusive and flexible approach, enabling customers to book rentals without hefty upfront costs, spreading the expense over time in manageable installments. This method not only eases the financial burden on customers but also opens up the market to a broader audience.

For car rental companies, adopting BNPL means tapping into a wider customer base, including those who might have previously been excluded due to credit limitations. This can lead to increased bookings, higher rental rates, and a boost in customer loyalty. Moreover, the convenience and flexibility of BNPL can enhance the overall customer experience, making it a win-win for both renters and rental companies.

The shift towards BNPL is a response to the evolving consumer demand for more adaptable and personalized payment solutions. As the travel industry continues to recover and grow post-pandemic, embracing these innovative payment options could be key to staying competitive and meeting the needs of the modern traveler.

For now, Klarna and CarTrawler are taking the first step. Soon, we should expect other popular vehicle lenders like Avis, Alamo, Hertz, and Sixt to offer monthly payment plans directly, as well as travel and getaway services like Priceline and Booking.

Better payment processing for your travel business is right here.

How to get in on BNPL for your car rental business.

Integrating BNPL in Your Business Model

As the demand for more flexible payment options grows, integrating Buy Now Pay Later (BNPL) solutions into your car rental business model can be a game-changer. Here’s how to do it effectively:
1. Understanding BNPL: BNPL services allow customers to rent a car and pay for it over time, typically in interest-free monthly installment payments. This approach can attract a wider customer base, especially those who prefer not to pay the full amount upfront, can’t afford a high down payment, or who don’t have access to traditional credit.
2. Choosing the Right BNPL Provider: Partnering with the right BNPL service is crucial. Look for providers with a strong reputation, robust security measures, and seamless integration with your existing systems. Providers like Klarna, Affirm, and others offer various features and benefits that can align with different business needs.
3. Integrating with Your Payment System: Integration involves technical setup where the BNPL option is embedded into your online booking system. It should be a smooth, user-friendly process for customers, from selection to final payment.
4. Security and Compliance: Ensure the BNPL solution meets all security standards and complies with financial regulations. Protecting customer data and transactions should be a top priority.
5. Training Staff: Educate your staff about the BNPL process, benefits, and how to assist customers who choose this payment option.
6. Marketing the New Payment Option: Inform your customers about the availability of BNPL through your website, email campaigns, and social media. Highlight the benefits and convenience of this new payment option.
By implementing BNPL, you can offer more flexibility and convenience to your customers, potentially increasing sales and enhancing customer loyalty.

Car rental will always be high risk, for merchants and consumers alike.

Why Car Rental Companies Are Considered High Risk in Payment Processing

The car rental industry is often classified as ‘high risk’ in payment processing, and this has significant implications for how these companies manage and offer payment options. Understanding the reasons behind this classification is crucial for both consumers and businesses.

Factors Contributing to High-Risk Status
- High-Value Transactions: Car rentals often involve expensive assets, leading to high-value transactions. This increases the financial stakes for both the rental company and the payment processor.
- Fraud and Chargebacks: The industry is prone to higher rates of fraud and chargebacks. Rental cars can be targets for theft or misuse, and disputes over damages or service quality can lead to chargebacks.
- Cancellation and Change Frequency: Customers often change or cancel their bookings, leading to more frequent transaction reversals than in other industries.
- Long Duration Rentals: Longer rental periods can increase the risk of non-payment or disputes, as circumstances can change significantly over the rental period.
Impact on Payment Options

These risk factors have historically made it challenging for car rental companies to offer flexible payment options. Traditional financial institutions and payment processors may impose stricter terms or higher fees, making it difficult to implement customer-friendly solutions like BNPL.

However, with the advancement of technology and specialized payment service providers catering to high-risk industries, car rental companies are now finding ways to overcome these challenges. By partnering with the right payment processors, such as those experienced in handling high-risk accounts, car rental companies can offer more convenient and diverse payment options while managing the associated risks effectively.

High-risk businesses need high-risk processing. We can help.

The future is bright for car rental merchants.

The Future of Payments in Car Rentals and CTA

The car rental industry is on the cusp of a payment revolution. As we move forward, the trend towards more flexible and customer-centric payment options, like Buy Now Pay Later (BNPL), is expected to accelerate. This shift is driven by changing consumer preferences, technological advancements, and a growing emphasis on financial inclusivity.

Predicting Future Trends
- Increased Adoption of BNPL: With the success of partnerships like Klarna and CarTrawler, more car rental companies are likely to embrace BNPL options.
- Technological Integration: Enhanced digital experiences, such as app-based rentals and blockchain technology, could further streamline payment processes.
- Personalized Payment Solutions: Tailoring payment options to individual customer needs and preferences will become a key competitive advantage.
Embracing Change for Business Growth

For car rental companies, staying ahead means adapting to these changes. Embracing BNPL and other innovative payment methods can lead to greater customer satisfaction, increased bookings, and improved cash flow.

Finding the Right Partner

To successfully navigate this evolving landscape, partnering with experienced payment solution providers like DirectPayNet is essential. They offer the expertise and support needed to integrate high-risk merchant accounts and implement BNPL services seamlessly. By doing so, you can ensure your business is ready for the future of payments in car rentals.

BOOST YOUR RENTAL BOOKINGS WITH BETTER PAYMENTS
December 29, 2023
BNPL for Everyday Purchases? This Payment Option Is Lined with Gold for Merchants
In recent years, Buy Now, Pay Later (BNPL) services have gained significant traction among Americans, revolutionizing the way consumers approach their purchases. While traditionally associated with larger-ticket items like electronics and furniture, BNPL has now expanded into everyday products, like to buy groceries or home goods.

This shift in consumer behavior presents a golden opportunity for merchants to adapt and cater to the evolving needs of their customers. By offering BNPL as a payment method, merchants can capitalize on this trend and foster a more seamless and flexible shopping experience.

In this blog post, we will delve into the world of BNPL, explore why it has become popular among Americans for everyday items, and discuss why merchants should always have BNPL as a payment option.

Why Americans are Embracing BNPL

There are two main reasons Americans are using BNPL services more than ever today.

1. Interest in alternative payment methods: As technology continues to advance, consumers are seeking more innovative and convenient ways to make purchases. BNPL services offer a fresh alternative to traditional payment methods, such as credit cards, attracting an increasingly tech-savvy and digital-oriented population.

2. Desire for flexible payment options: The modern consumer values flexibility, and BNPL services deliver just that. They allow shoppers to break down their purchases into smaller, manageable installments without the long-term commitment of a credit card. This flexibility has made BNPL an attractive option for Americans purchasing everyday items.

The #1 BNPL Benefit for Consumers

There are many benefits of BNPL, but right now the only one they care about is interest-free payments. Bank account balances go down slower without financial consequence. Many BNPL providers offer zero-interest payment options, allowing consumers to spread the cost of their purchases without incurring additional fees.

Consumers use this with everyday items because small balances add up. While some are just in the habit of embracing BNPL for all their purchases, others like to see how much they’re really racking up before calling their spending spree quits. And when there are no late fees and interest rates are zero, there’s very little risk.

Plus, breaking down everyday purchases like grocery shopping means they have more room to make bigger purchases without feeling the burn.

Payment installments is the future. Prep now.

Why Merchants Need to Hop on the BNPL Bandwagon

For merchants, offering BNPL can be a great way to increase sales and customer loyalty. By providing customers with an affordable payment plan, merchants can encourage more people to make purchases that they may not have been able to afford otherwise.

Additionally, BNPL can help merchants increase their conversion rates by making it easier for customers to complete their purchase.

Essentially, there’s no reason not to offer BNPL at checkout.

BNLP Benefits for Merchants

Buy Now Pay Later offers merchants a range of benefits, including:
1. Expanded Customer Base – BNPL makes larger purchases more affordable, allowing merchants to reach a wider customer base.
2. Increased Conversion Rates – Customers who use BNPL are much more likely to complete their purchase.
3. Improved Customer Loyalty – Offering BNPL can help build customer loyalty and trust in your brand.
4. Higher Average Cart Value – Merchants who offer BNPL have seen an increase in their average cart value by up to 60%.
5. Lower Return Rates – Customers who use BNPL are less likely to return their purchases, resulting in lower return rates for merchants.
6. Removes Buyer Hesitation – By providing customers with flexible payment options, buyers are more likely to make the purchase without hesitation.
7. Improved Cash Flow – With BNPL, merchants can receive payments faster and improve their cash flow cycle.
8. Better Insights on Customers – By leveraging data from BNPL providers, merchants can gain better insights into their customers’ buying habits and preferences.
9. Reduced Risk of Fraud and Chargebacks – instances of fraud are handled through the BNPL provider, not you, reducing your risk significantly.
10. Lower Payment Processing Costs – Depending on your current rate or industry, using a Buy Now, Pay Later service could be significantly cheaper in terms of fees.
Overall, BNPL is an excellent payment option for both merchants and customers alike. It provides an easy and convenient way for customers to make larger purchases without having to worry about the financial burden of a large one-time payment.

For merchants, offering this type of payment option can be beneficial in terms of increased sales, higher conversion rates, and better customer relationships.

Things to Consider When Choosing a BNPL Service

According to a recent survey, more than half of Americans have used BNPL services over the last year for everyday purchases such as grocery bills and clothing instead of risking credit card debt. With this growing trend, e-commerce retailers should consider offering BNPL services at checkout even if they don’t sell high-ticket items (which is what the service was typically used for in the past).

When selecting a BNPL service, merchants should keep several factors in mind. Eligibility criteria is one of the most important considerations; some services may only be available to customers with good credit scores, while others may offer more lenient terms. Fees and payment flexibility are also important factors to consider when choosing a BNPL service.

Merchants should also weigh the pros and cons of offering two different BNPL services at checkout. On one hand, it can be beneficial to provide customers with multiple payment options; on the other hand, having too many payment offerings can lead to confusion or frustration among customers who don’t understand how each works.

Offering multiple BNPL services may also be a breach in one or both terms of service.

One last thing to consider is the win-win-win golden scenario with BNPL. Lenders win the most, merchants win due to the benefits mentioned previously, and customers win because they get to pay how they want without risk. The rise in this trend grew from the pandemic, so please pay attention to the provider you choose to partner with so your “win” doesn’t diminish.

Popular BNPL Services

The following is a list of some of the most popular BNPL apps available on the market:
- Afterpay: This service allows customers to pay for their purchase in four installments over six weeks with no interest or fees.
- Affirm: This service offers customers flexible payment plans over three, six or twelve months with no hidden fees or surprises.
- Klarna: This service allows customers to split their purchase into multiple equal payments over time with no additional costs or interest charges.
- Sezzle: This service provides short-term loans with no interest and no reporting to credit bureaus.
And then there are other options that you might be able to promote without being able to implement, like PayPal’s Pay in 4 or Apple Pay Later. This would be a good method for if you want customers to use a BNPL service so you can benefit from the fraud mitigation aspect without having to open an account with that provider.

With huge retailers like Walmart and Amazon offering these services for grocery shoppers and big spenders, alike, there’s no reason you shouldn’t use Buy Now, Pay Later too.

You can even have a 1st-party BNPL. Find out more here.

Potential Drawbacks Before You Dive into the BNPL Universe

While the advantages of offering BNPL services are evident, merchants must also consider the potential drawbacks and challenges associated with this payment method. One such concern is the fees and costs for merchants. BNPL providers typically charge a percentage fee on each transaction, which may be higher than those associated with traditional payment methods like credit cards.

Merchants must weigh the potential increase in sales and customer satisfaction against these additional costs to determine if BNPL is a financially viable option for their business.

Another potential drawback is managing customer credit risk. With BNPL, customers can defer payments, increasing the risk of default or late payments. Merchants need to ensure that their BNPL provider has robust systems in place to assess customers’ creditworthiness and minimize the risk of non-payment.

Although BNPL providers generally assume the risk of customer defaults, a high rate of non-payment could still impact the reputation of both the merchant and the BNPL service.

Lastly, merchants must consider the ethical aspect of responsible lending practices when offering BNPL services. Critics argue that BNPL can encourage overspending and lead consumers into debt.

As a result, merchants should carefully choose their BNPL provider and ensure that they implement measures to promote responsible lending, such as transparent terms and conditions, spending limits, and customer education on the responsible use of BNPL services.

Here’s How to Embrace The BNPL Revolution

The rise of BNPL services has undeniably transformed the way Americans purchase everyday items, creating an opportunity for merchants to adapt and cater to their customers’ evolving needs. By offering BNPL as a payment method, merchants can enjoy increased sales, improved customer loyalty, and an expanded customer base.

However, it is essential to consider the potential drawbacks and challenges, such as fees, customer credit risk, and responsible lending practices before fully embracing BNPL.

If you’re ready to reap the benefits of BNPL for your small business, consider opening a merchant account with DirectPayNet. As an industry-leading payment solutions provider, DirectPayNet can help you seamlessly integrate BNPL services into your payment options, ensuring a smooth and secure experience for both you and your customers.

Don’t miss out on the opportunity to tap into the growing BNPL market – contact DirectPayNet today to open your merchant account and elevate your business to new heights.

DON’T IGNORE THIS TREND, OR YOUR BUSINESS WILL SUFFER. OPEN AN ACCOUNT TODAY!
May 5, 2023
White-Label BNPL Service Futureproofs Your Checkout
Buy Now Pay Later services have been on the rise for years now and there’s no slowing down. We’ll get into the benefits of BNPL later, but what you need to know right now is that customers love it.

There’s just one problem: convenience. Convenience is a double-edged sword when it comes to BNPL. Sure, it’s convenient and the result is well worth the time it takes customers to get there. But the road is long and tedious. It can be a literal roadblock on your checkout.

The solution? White label Buy Now Pay Later services.

In this blog post, we’ll cover what white-label BNPL is and how it can help streamline and improve your checkout process. We’ll also look at some of the benefits businesses receive from utilizing this powerful tool in their in-store or online marketplace.

What is Buy Now Pay Later, and what is a white-label BNPL?

Buy Now Pay Later is a type of payment gateway that allows customers to purchase goods and services now, and pay for them later. It’s a way to offer customers the convenience of buying something they want without having to immediately pay for it in full. The name says it all: customers buy what they want now and pay for it later.

White-label BNPL is a type of Buy Now Pay Later service where an online store can be integrated with existing financial services providers such as financial institutions, credit card companies, or other third-party payment processing vendors to offer branded BNPL services.

This white-label integration makes it easier for merchants to offer their customers more convenient ways to pay for items and services at checkout without swapping to a 3rd-party payment solution.

What are the benefits of white-label BNPL service?

White-label BNPL includes all the benefits of white labeling anything with even more added value.
1. Increase Sales – White-label BNPL solutions can help increase sales by providing customers with the convenience of buying now and paying later straight from your own brand. Plus, the average order value will increase as the amount due today is less.
2. Customization – With white labeling, businesses can customize their look and feel for a consistent experience across different channels and platforms. Businesses can also add features or services based on customer feedback or industry trends, allowing them to better serve their customers.
3. Streamlined Checkout Process – White-label BNPL solutions help streamline the checkout process by allowing customers to quickly select their preferred payment option without having to switch between payment modes or fumble through unfamiliar options during the checkout process. This can help reduce cart abandonment and increase conversions.
4. Increased Security – White-label BNPL services are more secure than other payment options since it uses a closed network with rigorous security protocols in place. This helps protect customers’ information while ensuring their payments remain secure throughout the process.
5. Enhanced Customer Experience – White-label BNPL services provide customers with a seamless, personalized experience at checkout, which can lead to increased customer loyalty and satisfaction. With white-label BNPL services, businesses can also use data insights to identify potential upsell opportunities or target high-value shoppers for improved marketing efforts.
How does white label BNPL futureproof the checkout process?

White-label BNPL solutions are designed to make the checkout process more efficient, secure, and seamless. By using this service, businesses can better accommodate customers’ changing needs and preferences by offering various payment options that suit their individual needs.

Plus, white-label BNPL solutions provide businesses with valuable data insights to help them understand customer behavior and improve marketing efforts for a better overall experience. As such, white-label BNPL solutions are a great way to futureproof the checkout process and ensure customers have the most convenient (and secure) purchasing experience possible.

Current BNPL Options Are Too Tedious

The user experience is what’s most important. It’s also what BNPL options sacrifice to provide convenience.

Customers, at checkout, have to select the BNPL service they want to use, get redirected to that 3rd-party site, apply for the line of credit, get approved, and finally get directed back to the checkout. That’s only if the line was approved. If not? The process starts over. And that doesn’t even cover any hidden fees which can ruin customer relationships with your brand.

During that new journey, the desire to purchase lessens especially if denied the BNPL credit line. But there’s no way for you, the merchant, to put up any safety measures. You can’t offer the customer a discount upon denial. You can’t give customers tips on why their application was denied and what will increase the odds of approval. You’re stuck at the will of BNPL.

A Frictionless Checkout Experience Is Your Future

Current BNPL providers, like Klarna, Affirm, and even PayPal, are great. There’s obviously a market for the technology and service. But remember these installment payments services are a whole new market, a new tech, the first draft. White label is the next level of installments that builds on the foundation that these 3rd-party fintech services have created.

The beauty of white-label BNPL is that it works for e-commerce and physically in stores. We already know how it works online. In stores, at a physical checkout, one way for retailers to offer the service is by performing a quick credit check when the customer swipes their credit card and offering BNPL if they have enough credit. Each payment processor and POS (point of sale) device works differently, so be sure to use one that meets your needs.

What are some best practices when offering BNPL at checkout?

Some best practices to consider when offering BNPL at checkout include:
- Offering multiple options for payment installments (e.g., 3, 6, 9, or 12-month terms).
- Provide clear and concise information about the process and fees associated with BNPL payments.
- Make sure customers are aware of any late payment penalties that may apply.
- Use customer data to personalize the experience and offer the most suitable payment option to each shopper (e.g., better rates for loyal customers).
- Utilizing incentives such as discounts or rewards to help encourage customers to use BNPL services rather than other payment options.
By following these best practices, businesses can ensure their customers have a smooth and hassle-free checkout experience.

How do I set up a white-label BNPL service for my store?

If you want to set up a white-label BNPL installments-as-a-service for your store, the first step is to find a payment processing provider that offers this service. Once you’ve found an appropriate provider and discussed the necessary details, it’s time to integrate the solution into your checkout process via its API.

After the integration is complete, BNPL functionality within your checkout process can be offered without having customers leave your site. This will provide shoppers with the convenience of selecting their preferred payment option while also protecting their sensitive data and ensuring secure transactions each time.

DirectPayNet is a merchant account provider that can link you with a payment processor that offers white-label BNPL services. All you have to do is tell us you’re interested in this service and we’ll take it from there!
February 17, 2023