With Buy Now Pay Later (BNPL), your clients can pay for invoices, packages, and product orders in installments. You can offer clients 0% interest financing with up to three approved Buy Now Pay Later providers, including Afterpay, Klarna, and Affirm. Businesses that use BNPL attract more clients and see higher conversion rates!
In this article:
- Learn how to set up Buy Now Pay Later
- See how clients can use BNPL to check out a package or online product
- See how clients can use BNPL in a payment widget
- See how clients can use BNPL in the client app
- Get answers to frequently asked questions
- Watch a video tutorial
Set up Buy Now Pay Later
To get started, toggle on this feature in Settings > Features > Buy now pay later
Or, if you’re new to PocketSuite, head to the Home screen and set up your business in minutes with industry-specific templates and features. When you get to the Payments page in this onboarding process, toggle on Buy Now Pay Later, like the image below.
Online Booking
Clients can use Buy Now Pay Later when they check out a package through online booking or purchase a product from your online store. Here’s an example of a client using Buy Now Pay Later to finance a package purchase:
First, clients can navigate to the online booking site, add a package to their cart, and go through the checkout process as usual. Read this guide to learn more about selling packages.
Now, clients can choose how they want to pay. They can pay the total amount or finance the payment with Buy Now Pay Later. Select Buy now, pay later, and tap Next.
Select the preferred BNPL provider, either Klarna, Affirm, or Afterpay. Tap Next.
Here’s a tip: Tap the Learn More button on this screen to preview different rates and terms from our approved Buy Now Pay Later providers.
Clients will be taken to the BNPL provider's website. The client must follow the instructions on the provider’s website to get approved for financing. If the client is approved, they will see a final success screen from PocketSuite! If not approved, they will be prompted to select a new payment option.
Online Ordering
Here’s an example of a client using Buy Now Pay Later to finance an online product order:
First, clients can navigate to the online store and add products to the cart.
Next, clients will select their shipping method and delivery preferences before payment. They will also fill out their name, email, and shipping address before completing checking out. Read this guide to learn more about online product orders.
Now, clients can choose how they want to pay. They can pay the total amount or finance the payment with Buy Now Pay Later. Select Buy now, pay later, and tap Next.
Select the preferred BNPL provider, either Klarna, Affirm, or Afterpay. Tap Next.
Clients will be taken to the BNPL provider's website. The client must follow the instructions on the provider’s website to get approved for financing.
(If the client selects AfterPay as a BNPL provider, they will have to fill out their mailing address before continuing to the provider’s website.)
If the client is approved, they will see a final success screen from PocketSuite! If not approved, they will be prompted to select a new payment option.
Payment Widgets
Clients can use Buy Now Pay Later when you send them a product order, package, or invoice to be paid. Here’s an example of a client using Buy Now Pay Later to finance an invoice via a payment widget:
First, click the Pay invoice within the email to go to the payment widget.
In the payment widget, tap Pay Invoice.
Next, they have the option to add a tip. Tap Next.
Then, clients can choose how they want to pay. They can either pay the full amount, choose a payment plan (if payment plans have been set up), or finance the payment with Buy Now Pay Later. Select Buy now pay later, and tap Next.
Important Note: If a client is on a payment plan and has already paid a portion of the invoice, they will not see the option to pay the remaining balance with Buy Now Pay Later.
Select the preferred BNPL provider, either Klarna, Affirm, or Afterpay. Tap Next.
Here’s a tip: Tap the Learn More button on this screen to preview rates and terms for the different Buy Now Pay Later providers.
Clients will be taken to the BNPL provider's website. The client must follow the instructions on the provider’s website to get approved for financing.
Client App
Clients can use the client app to pay the balance of outstanding invoices, packages, and product orders. Here’s an example of a client using Buy Now Pay Later to finance a package via the client app:
In the client app, go to the Home > My Pros tab, find the business, and tap Pay to see outstanding balances on invoices and packages.
Select the invoice or package, and tap Pay at the bottom of the screen.
Then, they have the option to add a tip. Tap Next.
Now, clients can choose how they want to pay, either the full amount, a payment plan (if it’s an invoice and you have enabled invoice payment plans as an option), or finance the payment with Buy Now Pay Later. Select Buy Now Pay Later, and tap Next.
Select the preferred BNPL provider, either Klarna, Affirm, or Afterpay. Tap Next.
They will be taken to the BNPL provider's website. The client must follow the instructions on the provider’s website to get approved for financing.
If the client is approved, they will see a final success screen from PocketSuite!
Here’s a tip: Clients can use the client app to place new product orders or confirm existing orders with Buy Now Pay Later. Go to Home > My Account>Orders to confirm existing product orders. Or go to Home > My Pros > Find the correct business and tap Shop to place a new product order. Read this guide to learn more about managing product orders in the client app.
FAQ
How do I know if I qualify as a merchant to offer Buy Now Pay Later (BNPL) Financing?
PocketSuite gives Pros the option to offer Buy Now Pay Later financing to clients.
However, some Buy Now Pay Later providers prohibit businesses in certain industries from offering financing to clients. For example, Affirm prohibits Home Service professionals like plumbers, home cleaners, and landscapers. On the other hand, most business industries will be able to offer Klarna as a financing option to their clients.
If your business does not qualify to offer financing from a certain BNPL provider, it will not show up as an option to clients during checkout.
How can I offer Buy Now Pay Later (BNPL) financing to my clients?
To offer BNPL to clients, open the PocketSuite app and turn the feature on in Settings>Features>Buy Now Pay Later.
Your clients will be able to choose Buy Now Pay Later as their payment method when they checkout a package or product order or pay an invoice. They can choose from up to three Buy Now Pay Later providers (depending on your industry), including Affirm, AfterPay, and Klarna.
Can I just offer Buy Now Pay Later (BNPL) financing for some (not all) of my services/packages/items?
No. Once Buy Now Pay Later is turned on, it will be available as a payment option for ALL packages, invoices, and product orders. Currently, you cannot add Buy Now Pay Later financing as an option for specific packages, products, or invoices.
Can I show just one of the Buy Now Pay Later (BNPL) financing providers like Affirm and not the other providers (AfterPay and Klarna)?
No. Once Buy Now Pay Later is turned on, clients can choose their preferred provider, either Affirm, Klarna, or AfterPay.
However, some Buy Now Pay Later providers prohibit businesses in certain industries from offering financing to clients. If your business does not qualify to offer financing from a certain BNPL provider, it will not show up as an option to clients during checkout.
Can I apply for Buy Now Pay Later (BNPL) financing on behalf of my clients?
No. You cannot apply for BNPL financing on behalf of your clients. Your clients must get independently approved for financing from their preferred BNPL provider. Think of it as a credit card or low-interest loan. Once approved, it is your client’s responsibility to repay their chosen BNPL Provider.
What if my client wants to use Buy Now Pay Later to pay for an appointment, class, or reservation?
Buy Now Pay Later financing is only available as a payment method for packages, product orders, and invoices. If your client would like to use Buy Now Pay Later to finance an appointment (or class, reservation, etc.) you can add that appointment to an invoice and send the invoice to them for payment.
Can clients leave a tip if they select Buy Now Pay Later as their payment option?
Yes! Gratuity can be selected before the client is prompted to select a payment option. Gratuity will be included in the Buy Now Pay Later financed amount. Make sure you have Gratuity set up in Settings>Gratuity.
How can my clients quickly find out what is involved in applying for Buy Now Pay Later financing?
Each Buy Now Pay Later provider has a different approval process. Clients can head to their preferred provider's website to learn about their individual approval process.
Take a look at some helpful links below:
https://help.afterpay.com/hc/en-au/articles/217425866-How-does-Afterpay-work-
https://helpcenter.affirm.com/s/topic/0TO7V000000tQGaWAM/eligibility
https://www.klarna.com/us/customer-service/who-can-use-klarna/
Will it take longer for me to receive payment if my clients use Buy Now Pay Later (BNPL) financing? How long does it take for clients to get approved for Buy Now Pay Later financing and for merchants to receive payment?
Each Buy Now Pay Later provider has a different approval process. Some approvals are instantaneous, but it is possible for your client to be rejected for financing. If your client is approved, you should be paid out to you in the same time frame as standard client credit/debit card payment transactions.
Clients can head to their preferred provider's website to learn about their individual approval process.
Why is the Buy Now Pay Later (BNPL) financing fee so high? Why did you take 6% + $0.30 out of my payment?
The fee associated with BNPL is 6% + $0.30 per transaction, including your standard PocketSuite processing fee. This fee is charged on the total amount of the purchase/payment, including Gratuity, Shipping Costs, and Sales Taxes (if applicable). For example, with a $100 purchase financed with Buy Now Pay Later, your client will pay $100, and you will receive a payout of $93.70.
Will the Buy Now Pay Later (BNPL) financing fee be passed on to my clients if I turn on the Surcharge feature? Who pays the 6% + $0.30 BNPL fee?
No. Surcharge fees do not apply for Buy Now Pay Later transactions, which means this 6% + $0.30 fee cannot be passed on to your client. This is because of Federal Fair Lending laws. Merchants must not impose a surcharge on the Customer for using the Buy Now Pay Later Payment Method. A surcharge includes any charge or increase in the sale price, shipping costs, or any other Customer fees and charges that are applied because the Customer has elected to use the Buy Now Pay Later Payment Method.
When will I receive a payment if my client uses Buy Now Pay Later at checkout?
BNPL payments from your client are paid out to you in the same time frame as standard client credit/debit card payment transactions. You can receive funds in your bank account in 1-2 business days for no additional charge.
How do I refund a client who used Buy Now Pay Later to finance an invoice, package, or product order?
Refunds work exactly as they do for regular card payments on PocketSuite. You can refund clients for the full or partial amount paid. Refunds can be processed up to 120 days after the initial transaction if clients used Affirm or 180 days after for Afterpay and Klarna.
To refund a client’s payment, go to your Income dashboard and tap on the payment you'd like to refund > MORE > Refund. You will then be able to enter the partial or full refund amount.
How do I turn off the Buy Now Pay Later (BNPL) financing feature?
You can turn off Buy Now Pay Later in Settings>Features>Buy Now Pay Later. Remember to hit Save.
If my client defaults on their Buy Now Pay Later (BNPL) financing, am I or my business liable to repay it?
Once your client is approved for Buy Now Pay Later, it works just like a credit card or a 0% / low-interest loan. Your client (not you) is completely responsible for repayment to the Buy Now Pay Later financing provider.
Video Tutorial