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A Simple Guide to Buy Now Pay Later for Retailers

Buy now, pay later schemes give customers a way to spread the cost of their purchases and pay less upfront for the goods they want. The buy now, pay later service provider takes on the credit and fraud risk while the retailer is paid upfront. 

With the current impact of Covid-19 on bricks and mortar businesses, it’s never been more important to create an online presence and offer customers flexibility with their purchases. 

How it works

  1. Customer signs up for buy now, pay later and fills out an eligibility form to get an instant approval decision. This process is usually very quick so can even be done at the till if you have a customer paying your shop.  
  2. The retailer is paid in full by the provider so that they can release the goods to the customer. 
  3. The customer pays the provider in instalments, interest free.  

Benefits of buy now, pay later for retailers 

No credit risk

The main advantage of offering a buy now, pay later payment option is that you are paid in full and at the point of purchase, meaning you don’t need to worry about the credit risk or chasing customers for payment. 

Customers are more likely to make a purchase and spend more when they do! 

By offering the ability to split payment, you are increasing the affordability of your goods, and customers are more likely to complete a purchase and spend more if they feel that it is affordable. For example, by using buy now, pay later provider like Clearpay – retailers see a 22% increase in conversions and a 20-30% increase in average order value. 

Drives new customers to your store

Whether online, or offline customers are looking for flexibility with their payment options, being featured on an online directory of a wellknown provider will drive web traffic to your website, as will clearly sign posting the different payment options you offer on your website. 

Customer loyalty

Customers are more likely to make a repeat purchase when they have had a positive experience using a buy now, pay later payment option. 

Easily integrated in your online store

Most buy now, pay later service providers are easily integrated with ecommerce clients such as WoocommerceShopify and Magento, and offer technical support to get you online  

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The 3 C’s – what to consider when choosing your buy now, pay later service provider 


Make sure that your chosen provider is compatible with your ecommerce system, or if you are choosing to integrate your payments system into your in store POS system, make sure to research whether your chosen provider is supported. 


As most buy now, pay later service providers don’t charge any interest, the majority make money from charging the retailer commission or a set fee for handling paymentsClearpay offers Bira members a discount on their commission rate (see more information about this below) 


It’s important to pick a provider which is trusted by its customers and has a growing userbase. It’s worth thinking about which provider already has a similar customer base to your business, and could be a good idea to research if they already have a category for businesses like yours in their shop directory. 

Once I’ve set up a buy now pay later payment service for my customers, what‘s next? 

Most providers offer a resources section on their website so you can take advantage by downloading their branding kits to let your customers know they have different payment options. 

Take advantage of the additional marketing available to you, make sure to complete and keep updated your shop directory so that customers can find you. Interact with your chosen service provider on social media to improve your visibility to potential customers. 

buy now pay later

How can Bira help? 


We’ve partnered with Clearpay to offer Bira members exclusive discounted rates. If you’re a Bira member and want to take advantage of the service offered by Clearpay you can find out more, including the discount on commission by clicking below. 

While Bira’s service partner Clearpay is currently only available online, they are launching an instore option soon. 




We’ve also teamed up with EKM to give Bira members exclusive benefits on ecommerce websites. Benefits include an extended 90day trial so you can be sure that EKM is right for your business before you need to pay anything. Click below to find out more  


If you’re not currently a member but want to gain access to these benefits join today by clicking the button below or calling the membership team on 0800 028 0245. 

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