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BNPL readiness checklist for merchants
October 23, 2025
Buy now, pay later (BNPL) is more than an extra payment option. It opens the door to millions of shoppers who need the right tool for managing their cashflow or alternative payment method, helping retailers capture sales that might otherwise be lost and giving customers more payment flexibility .
Use this brief assessment (check off yes / no) to help you evaluate if now is the time to integrate flexible payment options like Zip. From technical setup to shopper needs and operational alignment, these questions will help you decide if it’s time to offer BNPL. And if most of your answers lean yes, you’re likely closer to launch than you think.
Customer need and market fit
Before you can unlock new growth, it's crucial to understand the needs of your shoppers. This section will help you identify these critical demand signals so you can meet customers where they are and convert hesitation into completed sales using buy now, pay later.
1. Do you see high abandoned carts either in high-ticket items or across your whole spectrum of items? (Yes/No)
Yes
No
If shoppers abandon even lower-ticket items, it may signal cost sensitivity or trust concerns at checkout. Introducing more flexible payment options could help mitigate these issues and recover lost sales.
2. Have you had shoppers decline Private Label Credit Card (PLCC) or credit card applications at checkout?
Yes
No
This may signal an opportunity for alternative financing options that don't require long approval processes.
3. Are your customers interested in your PLCC or credit cards, but it's not an option for them at the moment?
Yes
No
BNPL options can serve shoppers who prefer not to use traditional credit or are underestimated by traditional financing, without requiring hard credit checks.
4. Do you sell to customers who have steady or generous incomes but are still very price sensitive?
Yes
No
These customers may be balancing budgets across multiple priorities and prefer short-term installment plans to manage expenses.
5. Do your customers—via direct feedback, social comments, or survey results—request payment flexibility or installments?
Yes
No
Hearing this feedback directly is a strong signal that offering installment payments could reduce friction and improve conversion.
6. What industry is your company part of?
BNPL solutions support a broad spectrum of retail industries.
Please see Prohibited and Restricted Items for the complete list of industries and items Zip does not support.
Sales channels and checkout experience
Customers expect flexible payment options, but sales often hit a snag at checkout when those options aren't available. Your shoppers are everywhere: online, in-store, and in-app. Your payment solutions should be, too. This section will help you pinpoint if your current sales setup supports flexible payments, ensuring customers can complete their purchase.
1. Do you sell across multiple channels (e.g., online, in-store, in-app)?
Yes
No
If so, your payment experience should match. A unified journey across all channels helps ensure shoppers can complete their purchase online, in-store or on your app.
2. Can your current checkout flow accommodate multiple payment methods?
Yes
No
Flexibility at checkout increases completion rates and meets a wider range of shopper needs.
3. Do you offer express checkout or a streamlined checkout process?
Yes
No
Reducing friction, especially for returning shoppers, can significantly increase conversion.
Bypass the barriers to buy |
|---|
Express checkout improves BNPL adoption by minimizing friction in the purchase journey. Here’s how: Effortless purchase: Express checkout allows shoppers to skip unnecessary steps, which minimizes cart abandonment and boosts conversion. Eye-catching placement: A highly visible express checkout button can be directly on the product page and cart page. The flexible payment option is presented at critical decision-making moments within the shopping journey, making it easier for shoppers to complete their purchase. |
Operational infrastructure and internal alignment
Deciding to offer flexible payments is a smart move, but the true test lies in what happens behind the scenes. The following questions are designed to evaluate how effectively your teams and technology work together, and can help you spot areas where you're strong and where you might need to adjust.
1. Are your finance and operations teams aligned on flexible payment terms?
Yes
No
Alignment across teams ensures faster setup and fewer roadblocks post-launch.
2. Do you currently track cart abandonment, average order value (AOV), or conversion rate on a regular basis?
Yes
No
If you’re already tracking these metrics, you’ll be able to evaluate BNPL performance more effectively.
3. Do you have fraud prevention and reconciliation tools in place?
Yes
No
Strong processes here ensure smoother adoption of new payment methods.
While Zip provides these essential tools, operational readiness is the fast track to ROI. When merchants are set up to integrate BNPL smoothly, they can expect streamlined operations and better reporting across teams. |
What’s your integration path to success?
Path 1: If you use a platform like Shopify, Stripe, or Adobe Commerce… | Path 2: If your website is built in-house, you’ll need a custom API for payments. In this case… |
|---|---|
Do you have internal resources to support a quick plugin configuration through these partners (an important capability for ease of integration)? | Do you have a development team or a tech partner who can help integrate the custom API? |
Yes | Yes |
No | No |
These platforms often offer plug-and-play capabilities that reduce dev time. | Custom integrations require more time but offer flexibility for complex stacks. |
Business goals and readiness to grow
Your goals for growth, loyalty, and profitability define your brand's future. This section helps you align BNPL with those core business objectives, assessing your readiness to make flexible payments a strategic lever rather than just another checkout option.
1. Are you trying to increase conversion or AOV without discounting or impacting your margin?
Yes
No
Flexible payments can help achieve this by enabling customers to buy the items they need without lowering prices.
2. Are you focused on acquiring new customers, like younger shoppers or shoppers who prefer not to use legacy credit options?
Yes
No
These segments may be underestimated by your current financing or payment options.
3. Are you exploring ways to differentiate your checkout experience from competitors?
Yes
No
Offering more payment choices at checkout can make your brand stand out and feel more customer-centric.
4. Do you want to improve repeat purchase rates or NPS?
Yes
No
Customers who find the checkout process flexible and easy are more likely to return.
Convert untapped demand |
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Flexible payment solutions offer a path to purchase for shoppers outside of traditional credit systems. This means you can reach a broader audience, leading directly to additional sales you might otherwise miss. |
Foster long-term customer relationships |
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Customers who use BNPL shop 2-3 times more, which may help improve retention and increase customer lifetime value (CLV). |
Your BNPL readiness snapshot
This quick assessment will help gauge your brand’s readiness for flexible payments.
Mostly Yes?
Your infrastructure, customer insights, and business objectives are already aligned for success. You're set up for a rapid, impactful integration with Zip. Merchants who integrate with Zip see impactful results, like immediate lifts in conversion rates (27%) and AOV (47%), acquiring new, overlooked customers, and building lasting loyalty.
Mixed or Mostly No?
Consider this your blueprint for optimization. These areas highlight opportunities to strengthen your operational foundation and strategic approach. Our team is ready to partner with you, helping you build the necessary components to transform flexible payments into a powerful growth engine for your brand. Talk to a BNPL expert to build the readiness plan that prepares your brand for growth with Zip.
Green light for growth
If your answers lean towards 'Yes,' your brand is ready for BNPL and primed for a strategic leap forward. You're set to boost conversions and AOV, acquire underestimated customers, and enhance loyalty through a seamless payment experience.
Ready to transform this potential into measurable growth? Take the next step: dive into Zip's Resource Center for valuable insights or talk to a BNPL expert today.
Eligibility criteria apply. Zip can only be used for US purchases. Certain merchant, product, goods, and service restrictions apply. Loans through Zip originated by WeBank.