How to Set Up WooCommerce Buy Now Pay Later (BNPL) in Your Store 

Do you want to boost sales of your WooCommerce store?

If so, consider offering Buy Now Pay Later (BNPL) services. 

BNPL has quickly become a favorite payment option among shoppers because it reduces the burden of immediate payments, making purchases more accessible and convenient. 

In fact, according to Juniper Research, the global value of BNPL transactions is projected to increase by 106% by 2028, reaching $687 billion. 

In 2024 alone, BNPL transactions were valued at $334 billion.

These statistics reflect this payment method’s growing popularity and undeniable appeal to shoppers. 

If you’re ready to boost sales, now is the perfect time to start offering BNPL options.

In this blog, we will share how you can offer WooCommerce Buy Now Pay Later options on your store and explore the most popular BNPL platforms. 

What Is Buy Now Pay Later Payment Method? 

Buy Now, Pay Later (BNPL) is a payment method that allows you to make a purchase with an initial down payment and pay the remaining balance later, either in a single payment or in installments.

Usually, the Buy Now Pay Later payment method offers installment plans for paying the remaining balance. Here are some of the ways you can pay using Buy Now Pay Later.

• 3 or 4 part installments: Pay the remaining amount in three or four interest-free payments.
• Monthly installments: Customers pay for the purchase over a longer term of up to 36 months, often including an interest fee.
• Pay later: Customers can pay in a single payment within 30 days of placing an order.

For example, if you buy something for $100, you could pay in 4 installments of $25 each, six monthly payments of $16.67, or 12 monthly payments of $8.34.

Depending on the Buy Now, Pay Later platform and shopper’s credit, interest may be charged in installments or monthly payments.

Some of the popular Buy Now Pay Later payment gateway platforms are Klarna, Affirm, AfterPay, PayPal Credit, etc. 

We will talk about more about these BNPL payment methods in the next section. 

Does WooCommerce Offer Buy Now Pay Later Services? 

No, WooCommerce by default, doesn’t provide any option to offer buy now, pay later options. 

By default, WooCommerce offers only three payment methods:

• Direct bank transfer 
• Check payments 
• Cash on delivery

However, you can integrate all the popular Buy Now Pay Later options with WooCommerce. 

Later in this blog, we will cover how you can set up BNPL methods in WooCommerce. 

Before that, let’s learn about the popular platforms. 

Popular Buy Now Pay Later Payment Platforms 

Here, we have listed all the popular Buy Now Pay Later platforms that can be integrated with WooCommerce: 

1. Klarna 

Klarna is a Swedish financial technology company offering a “Buy Now, Pay Later” (BNPL) service that lets shoppers make purchases upfront and pay over time.

According to Klarna, they have over 85 million active users and over 575,000 retailers.

This platform offers much-wanted flexibility to users who are short on budget but want to buy something. 

Klarna is available in Sweden, Norway, Finland, Denmark, Germany, Austria, the Netherlands, Belgium, Switzerland, France, Italy, Poland, Spain, Portugal, Great Britain, Greece, the Czech Republic, the USA, and Australia.

Available in currencies including AUD, CAD, CHF, PLN, DKK, EUR, GBP, NOK, SEK and USD.

Here are the different payment options Klarna provides: 

• Pay in 3 or 4( interest-free): Split the cost into four interest-free payments, or choose another Klarna option that suits you. 
• Monthly installments (Financing): Customers pay for the purchase over a longer term of up to 36 months, which will include an interest fee.
• Pay in up to 30 days: Shop first and pay up to 30 days after placing your order. No upfront payments, no interest.

However, the availability of these different payment plans depends on the location. [Source: Stripe] 

2. Affirm 

Affirm is a convenient Buy Now Pay Later payment option that doesn’t charge any hidden fees or compound interest. 

This BNPL platform provides flexible payment options with interest rates ranging from 0% to 36% APR, determined by the shopper’s creditworthiness. This enables customers to make purchases without taking on overwhelming debt, promoting financial responsibility.

Affirm is currently available in the United States, Canada, and the United Kingdom. 

Available in currencies, including USD or CAD. 

Here are the different payment plans Affirm provides: 

• Pay in 4: Split the cost into four interest-free payments made every two weeks. A down payment may be required depending on the purchase amount.
• Monthly Installments: Choose to pay for your purchase over a longer term, ranging from 3 to 60 months. Interest rates range from 0% to 36% APR, depending on credit and merchant-specific offers. A down payment may also be required.

3. Afterpay

Afterpay, also known as ClearPay (Only in the UK), allows users to make purchases and pay for them in installments over time.

This payment method is available in Australia, New Zealand, the United States, Canada, and the United Kingdom. Supported currencies include USD, CAD, GBP, AUD, and NZD.

Afterpay provides customers with two convenient payment options for product purchases:

• Pay in 4:  Pay in four interest-free parts installments, payable in bi-weekly installments.
• Monthly installments: Extended payment plans with added interest over 6 or 12 months. Only available in the US.

4. PayPal Credit

PayPal Credit acts as a Buy Now Pay Later payment option that allows customers to make purchases immediately and pay for them over time. Users must log in to their PayPal account to select and use PayPal Credit as a payment method.

PayPal Credit is only available in over 200 countries and regions, supporting 25 currencies.

The Buy Now Payment Later options can be categorized based on the order total. Here is how:

• Purchases of $149+: If the order total is over $149, then you can pay in full within 6 months; there won’t be any interest. Otherwise, interest will be charged on the purchase from the purchase date.
• Order below $149: Requires minimum monthly payments. Interest will be charged from the purchase date if the balance isn’t paid in full within the promotional period.

What Are The Benefits of Using Buy Now Pay Later in WooCommerce?

Offering Buy Now, Pay Later in WooCommerce boosts sales by attracting new customers and enhancing loyalty through a better shopping experience. Let’s check the benefits in detail: 

• Boosted conversion rates and sales

Studies show that 60% of consumers are more likely to complete a purchase when offered a BNPL option. This directly leads to less reduced cart abandonment and increased conversion rates. 

Plus, customers are more likely to buy expensive items when they can pay over time, resulting in a higher average order value for your store. 

• Increased customer loyalty and repeat business

79% of shoppers are more likely to return to a store that offers flexible payment methods. So, offering a flexible payment method like Buy Now Pay Later in your WooCommerce store can foster customer loyalty. 

BNPL allows customers to manage their budgets and shop stress-free, leading to a better overall shopping experience. This can also lead to long-term relationships and repeated sales.

• Attracting new customer

BNPL attracts customers who may not have the full amount to pay upfront. In fact, 48% of shoppers say they are more likely to buy from a store offering BNPL, even if other payment options are available. 

This means BNPL widens your customer base, offering flexibility for buyers to purchase now and pay later – making previous inaccessible products more attainable.

• Risk-free payments for merchants

With most BNPL providers, such as Klarna or Affirm, merchants get paid upfront, and the provider assumes the risk of customer non-payment. This means no risk of delayed payments or chargebacks for the merchant, which makes it a safe and reliable option.

Customers benefit from the flexibility of spreading payments while the merchant continues to receive full payment, ensuring both sides benefit without financial strain.

• Improved customer satisfaction

WooCommerce Buy Now Pay Later options improve customer satisfaction and reduce customer service issues. When customers are happy with their shopping experience, they’re more likely to leave positive reviews and recommend the store to others.

So, offering Buy Now Pay Later options on your WooCommerce store is a solid idea to gain new customers and retain the old ones. 

How to Offer WooCommerce Buy Now Later in Your Store? 

To offer  Buy Now Pay Later payment plans in WooCommerce, we will use FunnelKit Pay. 

Trusted by over 17,000 WooCommerce store owners, this plugin offers easy integration with Stripe to offer hassle-free BNPL payments in your store. 

With FunnelKit Pay, you can offer all the popular BNPL payments, including Klarna, Affirm, and Afterpay.

The best part about this WooCommerce BNPL plugin is it’s super easy to set up, as it offers automatic Stripe key syncing and webhook integration. 

You can find the free version of FunnelKit Pay in WordPress.org. 

Follow this step-by-step guide to set up WooCommerce Buy Now Pay Later in your store.

Step 1: Install and activate FunnelKit Pay

The first step is to install and activate FunnelKit Pay. To do this, navigate to Plugins ⇒ Add a new plugin and search for ‘FunnelKit Pay’.

Install and activate the plugin.

Step 2: Connect the Stripe account to your WooCommerce store

After installing FunnelKit Pay, click the ‘Start Onboarding Wizard’ button.

It’ll direct you to the WooCommerce – Stripe connection process.

Here, hit the ‘Connect with Stripe’ button.

Sign in to your Stripe account with your login credentials, email address, and password.

Verify your authorization by entering the 6-digit verification code sent to your registered phone number.

Next, confirm your Stripe account by selecting it and clicking on ‘Connect’.

Now, enable the Credit Card (Stripe), and any of your preferred WooCommerce Buy Now Pay Later payment gateways – Affirm, Klarna, or Afterpay.

Click on the ‘Save and Continue’ button.

After activating, FunnelKit Pay automatically activates your webhooks to capture various events.

To do so, hit ‘Setup Webhook Now’.

Next, turn the toggle to enable express checkout payments in your WooCommerce store if you want.

Confirm the live or test mode you want to run on your WooCommerce store.

For now, we recommend turning on the ‘Test’ mode and clicking on ‘Save and Review Settings’.

This will successfully connect your Stripe account with your WooCommerce store.

Step 3: Enable the WooCommerce Buy Now Pay Later payment gateway

Navigate to WooCommerce ⇒ Settings ⇒ Payments. Next, Scroll down and look for the BNPL payment methods like Affirm, Klarna, and AfterPay. 

To enable any of them, hit the “Finish Setup” button next to it.

Next, check the option next to ‘Enable Klarna.’

This will enable Klarna in your WooCommerce store.

Step 4: Configure the WooCommerce Buy Now Pay Later payment option

Configure the Klarna payment gateway with the following options:

• Title: Set the title displayed on the checkout page for Klarna.
• Description: Add a brief description that appears under the Klarna payment option at checkout.
• Klarna Message Location: Choose where to display Klarna’s customizable message (Product, Cart, or Shop/Category pages).
• Selling Location(s): Select “Sell to specific countries” to limit sales to certain regions.
• Sell to Specific Countries: Choose the specific countries where you wish to sell.

Make sure to hit “Save Changes” to update. 

This is how the Klarna payment message appears on the category page:

On the product’s page:

Here is what Klarna looks like on a side cart by FunnelKit Cart. 

Now your store is ready to offer WooCommerce Buy Now Pay Later options.

However, it’s always recommended that the process be tested before making it live. 

Move to the next section to find out how to test BNPL payments in WooCommerce. 

Testing WooCommerce Buy Now Pay Later Payment Plans

Before testing the BNPL process, make sure your Stripe Mode is set to “Test Mode (For Administrators)”.

This model is important because it lets you test the BNPL system safely, ensuring real customers can’t place orders with test data. It allows you to verify functionality without involving actual transactions.

Once you have set the Admin-only test mode, add items to your cart and proceed to the checkout page. Then, after payment, select the option “Klarna – Pay Over Time” and hit the Place Order button.  

🔔 Note: The checkout page shown below is built with FunnelKit Funnel Builder. 

Next, you will be redirected to a web page that verifies your Phone number. 

To do this, enter your phone number and hit Continue.

Use any random 6-number digit as your verification code. After this, you will be asked to verify your email address.

Next, you will be asked to log in. Then, you will be offered the available BNPL payment plans. Choose your preferred one and hit Continue.

Then, you will be asked to provide Card details; you can use sample data provided by Klarna. 

To confirm and pay for the test order, hit “Pay with Klarna”. 

Wait for some time so the process gets completed. 

After you have completed it, you will be redirected to the thank you page. 

If everything goes well, you can be assured that your store is ready to accept payment using Klarna Buy Now Pay Later payment plans. 

The last thing you need to do is to ensure Stripe mode is set to Live. 

This is how you can enable and test BNPL payments in WooCommerce. 

Frequently asked questions (FAQs) about WooCommerce Buy Now, Pay Later Payment Plans

1. Is WooCommerce BNPL risky for merchants?

No, WooCommerce BNPL is generally not risky for merchants. Payment providers like Klarna or Affirm assume the financial risk of customer defaults. Merchants receive their payments upfront, and the BNPL provider manages repayment collection. 

2. Does WooCommerce allow payment plans?

Yes, WooCommerce supports payment plans through integration with BNPL services like Klarna, Affirm, and others. Merchants can offer customers the option to split payments into installments, either interest-free or with financing, depending on the service chosen. However, you can’t offer BNPL payment plans with just WooCommerce. You will need a BNPL payment gateway plugin like FunnelKit pay to integrate BNPL payment plans to your WooCommerce store. 

3. How does WooCommerce handle BNPL transactions?

WooCommerce handles “Buy Now, Pay Later” (BNPL) transactions through its payment gateways. When a customer selects BNPL at checkout, the payment provider checks if they qualify and sets up a payment plan. The store owner gets the full payment immediately, while the customer pays back later, often with interest.

4. Can customers use BNPL on WooCommerce for all products?

It depends on the merchant’s preferences. Merchants can choose which products or categories are eligible for BNPL, or they can offer BNPL across their entire store. Some payment gateways allow merchants to exclude certain items, such as digital products or subscriptions.

5. Are there any fees for using BNPL on WooCommerce?

Yes, WooCommerce merchants typically pay fees to offer BNPL options, which can vary depending on the payment provider. These fees may be a percentage of the sale or a flat fee, and it’s important for merchants to understand the costs involved before offering BNPL.

6. Do customers need good credit to use BNPL on WooCommerce?

Most BNPL services like Klarna, Affirm and Afterpay perform a quick credit check to assess a customer’s eligibility. However, these checks are typically soft inquiries that don’t affect the customer’s credit score. While a good credit score may increase the chances of approval, many services also offer options for customers with less-than-perfect credit.

Ready to Offer WooCommerce Buy Now Pay Later In Your Store? 

WooCommerce’s Buy Now, Pay Later (BNPL) option is a customer favorite and a great way to boost your sales. It allows customers to shop conveniently while increasing conversions for your store.

This payment option is especially effective if you sell higher-priced products in your WooCommerce store. As you have seen, with the help of FunnelKit Pay, you can offer various Buy Now Pay Later payment plans in your store through Stripe. 

Since FunnelKit Pay uses Stripe to integrate BNPL platforms into your WooCommerce store, the process is seamless and secure. 

Whether your location supports Klarna, Affirm, or Afterpay, FunnelKit Pay has got you covered.

If you’re ready to attract new customers and boost sales by simplifying the payment processes, it’s time to start offering BNPL today. 

Get FunnelKit Pay now and start offering WooCommerce Buy Now Pay Later in your store!