Why now is the time to bring BNPL to your physical stores

April 3, 2025

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Buy now, pay later (BNPL) has transformed e-commerce, giving millions of consumers the flexibility they need to make purchases with confidence. Yet, despite its rapid adoption online, BNPL remains an untapped opportunity in brick-and-mortar retail.

The same benefits that make flexible payments a game-changer for online merchants — higher conversion rates, larger basket sizes, and greater accessibility — are just as powerful in-store. With the right approach to BNPL, retailers can capture sales and drive repeat business. But driving awareness of BNPL availability is a critical step to achieving the best results.

“Retailers can use BNPL to open doors to many customers that may not have had the opportunity to transact at their stores, or may not have been able to buy as much as they would like to at those stores,” says Mallory Burstein, Senior Merchant Development Manager at Zip. “We work with retailers on the right in-store signage and marketing placements to achieve specific objectives for each store.”

BNPL benefits a large, high-intent shopper audience

All BNPL solutions offer consumers the ability to pay for purchases in installments, but many are designed to serve customers who already have access to credit and other traditional payment methods. Yet consumers financially underserved by credit represent a high-intent and growing shopper segment that can benefit greatly from flexible payments.

Offering and promoting flexible payment solutions to financially underserved consumers can drive measurable improvements in sales, average order values, and customer retention for retailers with no technical lift required. In fact, many financially underserved consumers are already using Zip’s flexible payment solutions to make purchases in stores, without retailers even realizing it, because Zip can be used anywhere Visa is accepted.

“Retailers don't need a formal partnership for their customers to use it, and there’s no integration necessary to accept Zip,” says Burstein. “We just leverage existing POS systems with tap-to-pay on our virtual Visa card.”

Signage and collaboration drive BNPL awareness and use

Partnering to drive awareness of BNPL helps retailers activate shoppers who are already in their stores, but not spending.

“Customers go to stores to seek inspiration and check prices,” says Burstein. “BNPL gives them the opportunity to buy on the spot and take home the items they need while having the financial flexibility to pay over time.”

Yet shoppers won’t use BNPL in-store or, in many cases, buy at all if they don’t know BNPL is even available. That makes signage and store-associate education incredibly important.

Strategic signage at storefronts, checkout counters, and key product areas like dressing-room mirrors educates customers and increases BNPL adoption, helping drive incremental revenue. Zip provides that signage, as well as comprehensive associate training and support, and collaborates closely with retailers to customize in-store messaging.

“We ensure that our retailers are set up for success and that we're providing as much value as possible to them,” says Burstein.

Improve cross-channel consistency and support

Retailers’ in-store customers also expect a unified, omnichannel shopping experience. By working with a BNPL partner that supports all the places their customers shop — online, in-store, and in-app — retailers can offer those customers a frictionless, consistent checkout experience across all channels.

“Offering flexible payments helps your customers feel supported,” says Burstein. “You want them to feel the same type of support and optionality that they experience online in your stores.”

And with flexible payments stretching across multiple sales channels, retailers can streamline reporting, reconciliation, and customer service while providing seamless payment options wherever customers choose to shop.

Ultimately, BNPL is a natural evolution for in-store retail. Businesses that take advantage of the in-store BNPL opportunity now can gain a competitive edge by turning more shoppers into loyal return customers.

Learn more about the benefits of offering BNPL to in-store customers here.*

_{*Loans through Zip Pay Anywhere and Zip Web Checkout (including any "powered by Zip" loans) are originated by WebBank.}