The Top Buy Now Pay Later Providers for Shopify: A Comprehensive Guide

Buy Now Pay Later (BNPL) providers offer a convenient and flexible payment option for online shoppers, allowing them to make purchases and pay for them in installments over time. BNPL can be a valuable addition to an e-commerce business, as it can increase sales and customer satisfaction. In this guide, we'll take a closer look at the top BNPL providers for Shopify, including Afterpay, Laybuy, Zip, Sezzle, and Splitit. We'll also explore the pros and cons of each provider and provide some case studies and statistics to help you make an informed decision.

Benefits of BNPL:

  • Increased sales: BNPL can increase sales by making it easier for customers to make purchases, as they don't have to pay the full amount upfront.

  • Higher customer satisfaction: BNPL can improve customer satisfaction by offering a convenient and flexible payment option that allows customers to pay for their purchases over time.

  • Reduced cart abandonment: BNPL can reduce cart abandonment by allowing customers to make purchases even if they don't have the full amount available at the time of checkout.

Afterpay:

Afterpay is a BNPL provider that allows customers to make purchases and pay for them in installments over time. Afterpay integrates with Shopify through the Afterpay app.

Pros:

  • Widely available: Afterpay is available in a number of countries, including the US, UK, and Australia.

  • Strong brand recognition: Afterpay has a well-known and trusted brand, which can increase customer confidence in the payment option.

Cons:

  • Fees: Afterpay charges a fee to merchants for each transaction, which can cut into profits.

  • Limited to certain countries: Afterpay is only available in a limited number of countries.

Case study:

Case study:

One e-commerce business that has had success with Afterpay is Fossil, a fashion retailer. After implementing Afterpay as a payment option on their website, Fossil saw an increase in average order value and conversion rate. In addition, customers who used Afterpay as a payment option were more likely to make a repeat purchase.

Laybuy:

Laybuy is a BNPL provider that allows customers to make purchases and pay for them in installments over time. Laybuy integrates with Shopify through the Laybuy app.

Pros:

  • Widely available: Laybuy is available in a number of countries, including the US, UK, and Australia.

  • Flexible repayment options: Laybuy allows customers to choose from a range of repayment options, including weekly or monthly installments.

Cons:

  • Fees: Laybuy charges a fee to merchants for each transaction, which can cut into profits.

  • Limited to certain countries: Laybuy is only available in a limited number of countries.

Case study:

One e-commerce business that has had success with Laybuy is Baby City, a baby and nursery retailer in New Zealand. After implementing Laybuy as a payment option, Baby City saw an increase in average order value and conversion rate. In addition, customers who used Laybuy as a payment option were more likely to make a repeat purchase.

Zip:

Zip is a BNPL provider that allows customers to make purchases and pay for them in installments over time. Zip integrates with Shopify through the Zip app.

Pros:

  • Widely available: Zip is available in a number of countries, including the US, UK, and Australia.

  • Flexible repayment options: Zip allows customers to choose from a range of repayment options, including weekly or monthly installments.

  • No fees for merchants: Zip does not charge any fees to merchants for using their payment gateway, which can help to increase profits.

Cons:

  • Limited to certain countries: Zip is only available in a limited number of countries.

Case study:

One e-commerce business that has had success with Zip is The Good Guys, a major Australian electronics retailer. After implementing Zip as a payment option, The Good Guys saw an increase in average order value and conversion rate. In addition, customers who used Zip as a payment option were more likely to make a repeat purchase.

Sezzle:

Sezzle is a BNPL provider that allows customers to make purchases and pay for them in installments over time. Sezzle integrates with Shopify through the Sezzle app.

Pros:

  • Widely available: Sezzle is available in a number of countries, including the US, UK, and Australia.

  • Flexible repayment options: Sezzle allows customers to choose from a range of repayment options, including weekly or monthly installments.

  • No fees for merchants: Sezzle does not charge any fees to merchants for using their payment gateway, which can help to increase profits.

Cons:

  • Limited to certain countries: Sezzle is only available in a limited number of countries.

Case study:

One e-commerce business that has had success with Sezzle is Pet Circle, an Australian pet supply retailer. After implementing Sezzle as a payment option, Pet Circle saw an increase in average order value and conversion rate. In addition, customers who used Sezzle as a payment option were more likely to make a repeat purchase.

Splitit:

Splitit is a BNPL provider that allows customers to make purchases and pay for them in installments over time using their existing credit card. Splitit integrates with Shopify through the Splitit app.

Pros:

  • Widely available: Splitit is available in a number of countries, including the US, UK, and Australia.

  • Flexible repayment options: Splitit allows customers to choose from a range of repayment options, including weekly or monthly installments.

  • No fees for merchants: Splitit does not charge any fees to merchants for using their payment gateway, which can help to increase profits.

  • No credit check: Splitit does not require a credit check, which can be a benefit for customers with limited or poor credit.

Cons:

  • Limited to certain countries: Splitit is only available in a limited number of countries.

Case study:

One e-commerce business that has had success with Splitit is The Good Guys, a major Australian electronics retailer. After implementing Splitit as a payment option, The Good Guys saw an increase in average order value and conversion rate. In addition, customers who used Splitit as a payment option were more likely to make a repeat purchase.

Other BNPL providers:

In addition to the providers listed above, there are several other BNPL providers that offer integration with Shopify, including:

Klarna: Klarna is a BNPL provider that allows customers to make purchases and pay for them in installments over time. Klarna integrates with Shopify through the Klarna app.

Pros:

  • Widely available: Klarna is available in a number of countries, including the US, UK, and Australia.

  • Flexible repayment options: Klarna allows customers to choose from a range of repayment options, including weekly or monthly installments.

  • No fees for merchants: Klarna does not charge any fees to merchants for using their payment gateway, which can help to increase profits.

Cons:

  • Limited to certain countries: Klarna is only available in a limited number of countries.

  • Credit check required: Klarna requires a credit check for customers using their payment gateway.

Case study:

One e-commerce business that has had success with Klarna is ASOS, a major fashion retailer. After implementing Klarna as a payment option, ASOS saw an increase in average order value and conversion rate. In addition, customers who used Klarna as a payment option were more likely to make a repeat purchase.

QuadPay: QuadPay is a BNPL provider that allows customers to make purchases and pay for them in installments over time. QuadPay integrates with Shopify through the QuadPay app.

Pros:

  • Widely available: QuadPay is available in a number of countries, including the US, UK, and Australia.

  • Flexible repayment options: QuadPay allows customers to choose from a range of repayment options, including weekly or monthly installments.

  • No fees for merchants: QuadPay does not charge any fees to merchants for using their payment gateway, which can help to increase profits.

Cons:

  • Limited to certain countries: QuadPay is only available in a limited number of countries.

  • Credit check required: QuadPay requires a credit check for customers using their payment gateway.

Case study:

One e-commerce business that has had success with QuadPay is ASOS, a major fashion retailer. After implementing QuadPay as a payment option, ASOS saw an increase in average order value and conversion rate. In addition, customers who used QuadPay as a payment option were more likely to make a repeat purchase.

Conclusion:

In conclusion, Buy Now Pay Later (BNPL) providers can be a valuable addition to an e-commerce business, as they can increase sales, improve customer satisfaction, and reduce cart abandonment. There are several BNPL providers available for integration with Shopify, including Afterpay, Laybuy, Zip, Sezzle, and Splitit. Each provider has its own set of features and fees, and the best option for your business will depend on your specific needs and preferences, as well as the preferences of your customers. It's important to carefully consider the pros and cons of each provider before making a decision.

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