08 Dec 22

The How and Why of BNPL at the In-Store Checkout


Here’s the evidence you need to make adding BNPL to in-store payment solutions to your offerings.

We live in an age of instant gratification. We watch movies on demand. If we need information, we ask Alexa or Siri. It’s no surprise that retail consumers want instant gratification as well, even if they don’t have cash on hand or want to use credit cards. According to The Motley Fool, 55.8 percent of consumers have used BNPL, nearly 50 percent more than in 2021, and 62 percent believe it could render credit cards obsolete.

Furthermore, growth is predicted. More than 900 million consumers worldwide will use buy now, pay later (BNPL) services by 2027, up from 360 million in 2022 – a 157 percent increase.

Why Consumers Want a BNPL Option

BNPL is growing in popularity for a number of reasons. Obviously, consumers get what they want now and pay later. However, there are other advantages. BNPL allows shoppers to “pay in four” without incurring interest charges. Furthermore, BNPL doesn’t trigger the same credit checks that credit card companies perform, which can lower consumers’ credit scores.

Additionally, as long as consumers make payments, they can use the option for multiple purchases. One in four consumers in the Motley Fool survey stated that BNPL helps them manage their finances. Therefore, with the American economy facing uncertain times, many more consumers may turn to this option.

Who Is Using BNPL?

The largest demographic of BNPL users are just beginning their careers, so this option can help them furnish apartments or purchase electronics without running up credit card debt. This demographic is also generally open to using a wide range of payment technologies.

However, older consumers are also discovering the benefits of BNPL.  Those 55 and older on fixed incomes can take advantage of BNPL to help them stay within their budgets when purchasing high-value items.

Can Merchants Accept BNPL In-Store?

Most BNPL purchases are now online. Merchants that use BNPL may see fewer abandoned e-commerce shopping carts (retail averages 75.8 percent) since making four payments allows consumers to afford purchases that might be beyond their budget if they had to pay in full now.

Brick-and-mortar merchants may also be able to capture more revenues if they offer BNPL at the point of sale. However, merchants need a solution that allows them to accept BNPL payments in-store.

An advanced, flexible payment terminal solution allows merchants to offer their customers the option. One configuration, for example, enables consumers to scan a QR code from the payment terminal and complete the BNPL payment on their smartphones. Merchants can use signage and marketing campaigns to let their customers know they accept this payment method so shoppers can be ready to make a BNPL payment at the checkout. Also, training sales associates or cashiers to help customers use the payment method can encourage BNPL sales.

Klarna is a great example of a BNPL tool that benefits acquirers when they add it to the in-store checkout process. According to Nitzan Tal, Head of In-Store Partnerships at Klarna, “Klarna is responding to the increasing demands of consumers, who expect more convenience and flexibility in how they shop and pay, which in turn generates more demand from merchants. Adding Klarna to the in-store checkout experience offers merchants the alternative payment solutions that their consumers want, while increasing average transaction value and driving more footfall to their stores.”

Stay on the Cutting Edge

BNPL meets a demand among consumers for a way to purchase high-dollar items in a budget-friendly way and without adding interest charges, and, just like e-commerce merchants, it can help brick-and-mortar merchants capture more sales.

BNPL service providers, payment solution providers, and acquirers that provide their clients with payment systems have the opportunity to gain a competitive edge by bringing this payment method to brick-and-mortar stores. Technological advancements, such as Payment Platform as a Service solutions, make a BNPL option at the checkout.

As merchants look for ways to capture every possible sale in times of economic uncertainty, they may be ready to upgrade to a system that includes BNPL – and to work with payment solution providers who can provide them. 

Review your roadmap and consider how offering BNPL options to your clients can benefit your business.


Tonida Vaka

Director, Strategic Partnerships and PPaaS Sales

Ingenico North America

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