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The Ultimate Guide to Buy Now, Pay Later for Merchants
September 24, 2025
You nailed the product. You nailed the funnel. But at checkout, most shoppers still walk away. In 2024, more than 70% of carts were abandoned1, often because payment experience (PX) is still an afterthought.
Buy now, pay later (BNPL) is helping brands turn drop-off into dollars by reducing friction and opening new paths to growth.
Why BNPL is a smart growth strategy for merchants and businesses
What’s driving the rise of flexible payment methods, and why it matters in modern retail
You've done the work, built a great product, brought shoppers to your site, and optimized your funnel. But at the moment of truth, many still hesitate to click “buy.” Why?
For a growing number of consumers, the blocker isn’t interest. It’s how and when they can pay.
Over the past few years, flexible payment options like BNPL services have shifted from convenience to expectation. Shoppers now want control over how they split purchases for both high-ticket items and everyday essentials. And they expect that flexibility across channels, whether they’re checking out online, browsing in-store, or shopping through a brand’s app.
This change is being driven by evolving expectations around ease, access, inclusion, and financial transparency. Shoppers want fewer surprises, more control, and the ability to use flexible payments as a budgeting tool rather than a borrowing one.
BNPL is especially critical for customers who are underestimated by traditional financial services. In fact, nearly 30% of U.S. consumers lack access to conventional credit.2 And among BNPL users, more than 50% say it helps them purchase what they need, while 43% say they would delay or downgrade their order if a pay-over-time option weren’t available.
Flexible payments aren’t just a tool to remove friction—they create a smoother, more inclusive shopping experience. By offering consumers greater control over how they pay, retailers can reach a broader audience and build stronger loyalty. As expectations around financial access and flexibility continue to shift, leading retailers are rethinking how payment fits into the broader customer experience—across every channel, and for every shopper segment.
Learn more about how these trends are reshaping retail.
“GameStop’s partnership with Zip gives our customers greater flexibility in how they shop—whether they’re upgrading their console, picking up the latest release, or scoring the newest Pokémon TCG drop. With Zip’s Buy Now, Pay Later solution, we’re proud to offer a more convenient, budget-friendly way to play now and pay over time.” - John Staffaroni, Sr. Manager, Financial Services at GameStop |
Learn how net new customers fueled GameStop's 196% BNPL growth.
How BNPL increases conversion, AOV, and loyalty
Flexible payment options don't just align with how customers want to shop—they deliver measurable results that drive performance at every stage of the conversion funnel.
They reach shoppers who may not qualify for credit cards or Private Label Credit Card (PLCC) offers and give consumers a reason to move forward with their purchase. Rather than replacing existing payment methods, split payments add incremental volume.
This includes many younger and credit-averse shoppers who often abandon purchases without a flexible payment option. By offering BNPL, merchants can reach consumers who weren’t completing purchases before.
Merchants who offer BNPL see improvements in:
Conversion rates across product description pages (PDPs), cart pages, and checkout
AOVs, especially for high-ticket items and everyday essentials
Cart abandonment rates, especially at payment decision points
Loyalty and repeat purchases among early-life financial customers
Because these consumers often don’t qualify for other financing, BNPL does not cannibalize existing payment methods. It adds reach and revenue. In fact, 42.5% of people with a credit score below 620 had used flexible payments in the United States, while usage rates were lower among those with higher credit scores, demonstrating BNPL’s outsized role in expanding financial access through payment flexibility.3
“Zip adds flexibility at checkout that helps more fans complete their purchases — especially customers who might not have access to traditional credit. It's a subtle shift that improves both access and performance, with noticeable lifts in conversion and AOV.” — Steve Demots, CCO at FEVO |
Performance data that makes the case for BNPL
When placed strategically, split payment methods become a cross-functional growth tool for your business that improves performance across the funnel and across teams.
For e-commerce leaders |
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Cart drop-offs aren’t always a user experience (UX) issue. In many cases, it’s about cash flow. Budget-conscious customers pause at the final step when they’re unsure if they can pay in full. Adding buy now pay later apps at key moments (e.g., after a PLCC decline, on exit-intent popups, or directly on PDPs) gives customers the flexibility to complete the purchase. These placements contribute to cash flow smoothing, helping customers manage expenses and giving merchants more predictable performance. |
For finance and payments leaders |
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This isn’t about shifting volume from credit cards. Instead, Zip supports customers who are typically missed by traditional credit options. With a 1.4% loss rate, Zip offers access that’s both sustainable and responsible.4 |
For marketing leaders |
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When customers feel confident at checkout, they’re more likely to return. Zip’s 96% repeat purchase rate5, 4.9-star app rating, and +756 NPS shows how trust in the payment experience drives long-term loyalty. |
For technology leaders |
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Integration should be seamless, not stressful. Zip offers prebuilt plugins, mobile SDKs, low-code options, and reliable 99.9% uptime. |
For business leaders |
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Growth shouldn’t come at the expense of efficiency. Zip helps merchants reach new, underestimated customers without placing additional strain on internal teams. |
Merchants that offer flexible payments often see rapid improvements in key business metrics.
These gains typically appear within the first 90 days of implementation and are supported by real-time performance tracking across both online and in-store environments.
Read the Topline & bottomline impact of Zip BNPL to see how Zip drives real ROI for businesses.
FAQs: How does BNPL work for merchants?
Question | What it means | What to look for |
How easy is it to integrate? | Fast setup matters, especially during seasonal or promotional periods | Prebuilt plugins for Shopify, Stripe, Adobe, and other commerce platforms |
Who uses BNPL? | Younger, digital-first shoppers and consumers underestimated by traditional credit | Look for a BNPL that gives you access to a range of shoppers, including consumers underestimated by traditional credit who are looking for another way to pay |
Will this replace my other payment methods? | Merchants worry about cannibalizing PLCC or credit card volume | Look for solutions that capture net-new shoppers rather than shifting tender |
When will I see results? | Time-to-value is critical for finance and ops teams | Performance lift should be visible within the first 90 days |
Can it support in-store and mobile experiences? | Omnichannel consistency is key | Providers with SDKs, virtual cards, and in-store signage can support full-channel coverage |
What happens if a customer is declined elsewhere? | Missed approvals equal missed sales | Some platforms can recover transactions from failed PLCC or card applications |
How is fraud managed? | Risk protection matters to finance and ops | Leading platforms assume fraud liability and streamline chargeback support |
Is it a responsible lending model? | Merchants want to offer flexibility without risk | Look for providers with high repayment rates, low-limit loans, fee transparency and flexible payment plans |
Inside the experience: features that convert
Deliver a seamless omnichannel experience
Shoppers stay engaged across every channel, thanks to omnichannel payment options, instant prequalification, and smart BNPL integrations that drive action at the right moment.
The best BNPL omnichannel strategy supports shopping across every channel (online, in-store, or in-app), while clearly and consistently presenting flexible payment options. Prequalification allows consumers to check their eligibility for flexible payment methods before reaching checkout without impacting their credit. This transparency builds trust, reduces drop-off, and helps shoppers plan with confidence.
“By working with Zip we give people the freedom to book flights with clear, flexible installments so they can visit loved ones, explore new places, and see more of the world without the stress of paying everything upfront.” — Alex Yardley, Fly Fairly CEO |
Split payment options should not appear only at checkout. The most effective solutions show up throughout the customer journey. From product pages to promotions, it’s important to meet consumers where decisions are made.
Platforms that support mobile software development kits (SDKs), point of sale (POS) signage, and embedded financing options are best equipped to enable this level of flexibility and consistency.
Turn checkout friction into conversion
Don’t let missed opportunities slip away. BNPL can prevent drop-offs with a streamlined checkout experience, especially when it includes:
Exit-intent popups that surface flexible payments before a shopper leaves the site
Abandoned cart reminders that re-engage shoppers with pay-over-time options
Each of these features is designed to remove common checkout barriers and convert hesitation into completed purchases.
Meet shoppers where they buy
A frictionless checkout experience is delivered across every touchpoint, whether that’s online, in-store, or in-app.
Online: Boost conversions with express checkout and product page widgets that show installment pricing early
In-app: Zip’s mobile SDK makes it easy to embed BNPL services directly into your app
In-store: Accept flexible payments with Zip’s physical and virtual cards, compatible with Apple Pay and Google Pay
Partners that provide in-store signage and tap-to-pay options help ensure shoppers know they can pay later, even before they get to checkout.
Flexible payment integration that works with your stack
Flexible payments integrate effortlessly with your existing tech stack, so you don’t have to disrupt current systems to get started.
Prebuilt plugins for Shopify, Stripe, BigCommerce, Adobe Commerce, and more.
Custom APIs and low/no-code options
Unified reporting across online, in-store, and app transactions
Look for providers that also support advanced approvals and flexible data exchange, which can boost identity validation and reduce friction without adding risk.
“We launched in-store using a no-integration approach that enabled a fast, frictionless rollout. It was exactly what we needed to move quickly during the busiest season of the year.” - GameStop |
Build growth you can trust with BNPL that actually performs
Launch fast, see impact faster
Merchants need solutions that move at the speed of their business. Designed for rapid deployment and ROI, Zip is built for speed and scale. Merchants can go live in as little as a few days and begin seeing measurable business outcomes in the first 90 days.
For enterprise retailers, speed is only part of the equation. The best BNPL provider for enterprise must also deliver technical flexibility, trusted support, and proven results across every channel. Zip has a proven track record in helping enterprise brands discover value quickly, without overhauling their stack.
Flexible payment solutions with low-code integrations, prebuilt plugins, and dedicated onboarding support for complex environments offer the fastest time-to-value.
Simplify payments across teams and channels
Operational teams benefit when payments are easy to manage across every channel. Split payments bring everything into one place to keep processes clean and teams aligned.
Advanced fraud detection tools
Real-time chargeback and dispute support
Unified dashboard for reporting, reconciliation, and settlement
Look for platforms that reduce operational friction through merchant resources like centralized data, flexible APIs, and compliance-ready reporting to support both finance and tech teams.
Offer flexible payments responsibly
A sustainable BNPL model balances customer access with financial responsibility, helping you scale without unnecessary risk. Responsible lending is at Zip's core:
Average loss rates under 1.5%, well below banking norms
98%+ repayment rate, thanks to flexible installment plans and date-change features
Low-limit, short-duration loans that help customers manage expenses without long-term debt
This model protects margins and strengthens retention. Customers who repay successfully are more likely to return, trust your brand, and spend again.
Read How BNPL is transforming financial inclusion to see how flexible payments are helping merchants serve more shoppers without compromising responsibility or results.
Is your brand ready for BNPL?
Payment options aren’t just a nice-to-have. They’re a strategic advantage for brands that want to meet customers where they are and accelerate growth. Whether you're just starting to explore flexible payment methods or looking to optimize an existing checkout experience, Zip’s BNPL for merchants makes the path forward simple, scalable, and built for impact.
Not sure if you’re ready? Check out our Readiness Checklist to help assess whether your platform, processes, and teams are set up to succeed with flexible payments.
Get started by adding Zip with minimal dev lift on Stripe or Shopify. If you are a larger enterprise, talk to a Zip expert.