Why Your Shopify Plus Store Needs BNPL? [Pros & Cons + Detailed Guide]

Ever notice how "Buy Now, Pay Later" (BNPL) is popping up everywhere? There’s a reason for that—it makes buying easier and way more flexible.

For Shopify Plus stores, adding BNPL isn’t just about keeping up with trends; it’s about meeting shoppers where they’re at. BNPL lets customers pay in chunks, making those higher-price products a lot more accessible and often nudging them to buy when they might hesitate otherwise.

This guide breaks down why BNPL is such a game-changer, dives into the best BNPL options for Shopify Plus, and gives you tips on figuring out if it’s the right fit for your store.

What is Buy Now, Pay Later (BNPL)?

So, what exactly is Buy Now, Pay Later, and why is everyone talking about it?

BNPL is a payment option that lets customers split their total purchase into smaller, interest-free installments. Instead of paying upfront, they can spread payments out over weeks or months, which feels way more doable for a lot of people. It’s like putting a big purchase on layaway, only faster and without the wait.

BNPL has become a hit because it gives shoppers more control. Imagine eyeing a high-ticket item like the latest tech gadget or premium fashion piece but feeling the pinch of the price tag—BNPL makes those splurges feel a lot more achievable.

And for Shopify Plus stores, adding this option is a straightforward way to meet modern customer expectations and boost sales.

Why BNPL is Essential for Shopify Plus Stores

For Shopify Plus store owners, adopting Buy Now, Pay Later isn’t just about following trends—it’s about making smart moves for your business.

BNPL has been shown to increase Average Order Value (AOV) and conversion rates across e-commerce, which is especially useful for stores that sell higher-priced products.

Imagine your customer is eyeing that premium item in their cart. Instead of hesitating, BNPL gives them the option to break down the payment, making the decision to buy feel a whole lot easier.

By offering BNPL, you’re giving customers the flexibility to shop on their own terms, which can lead to more frequent and larger purchases.

Plus, there’s a ripple effect: customers who try BNPL often come back for more, which helps build loyalty over time.

For Shopify Plus stores targeting high-revenue growth, adding BNPL is like opening a door for more customers to say “yes” to that checkout button.

Top BNPL Solutions for Shopify Plus Stores

When it comes to picking the right Buy Now, Pay Later (BNPL) option for your Shopify Plus store, there are some solid apps to consider, each bringing something unique to the table.

Here’s a look at a few top BNPL solutions that can integrate seamlessly with Shopify Plus:

1. Afterpay

Afterpay has quickly become one of the most popular BNPL options, especially among younger shoppers. It lets customers split their payments over four installments without interest, making it a simple choice for those looking for flexibility.

With an app available in the Shopify App Store, Afterpay’s integration with Shopify Plus is smooth, and it’s widely recognized, which helps boost customer confidence.

2. Klarna

Known for offering a variety of payment plans, Klarna is a powerhouse in the BNPL world. Customers can choose to pay immediately, later, or in installments, giving them a lot of flexibility. Klarna also offers a seamless Shopify Plus integration through an existing app, and its brand recognition can be a big draw for shoppers.

3. Affirm

For stores that offer higher-ticket items, Affirm is often a top pick. It provides options for extended financing (from three to 36 months), which is perfect for pricier purchases.

Unlike other BNPL options, Affirm can include interest, but it’s transparent about the total cost upfront, which some customers prefer.

Shopify Plus stores that sell luxury or high-end products might find Affirm a good fit. Affirm’s integration is available as an app, ensuring compatibility with Shopify Plus.

4. Sezzle

Sezzle lets customers split their payments into four installments over six weeks, without any interest.

Known for being user-friendly and straightforward, Sezzle appeals to a broad audience, making it a great option for Shopify Plus stores wanting a flexible BNPL solution. Sezzle’s integration is also app-based, making it easy to add directly from the Shopify App Store.

Each of these BNPL providers has something unique to offer, so think about your customer base and what kind of flexibility they’re looking for.

Whether it’s interest-free payments or longer-term financing, choosing the right BNPL option can make a big difference in your customer experience and overall sales.

Pros and Cons of Adding BNPL Option in Your Shopify Plus Store

While Buy Now, Pay Later (BNPL) can be a game-changer for Shopify Plus stores, it’s essential to weigh both the advantages and potential drawbacks to ensure it aligns with your business goals.

Pros of Buy Now, Pay Later:

• Increased Sales and Average Order Value (AOV): BNPL encourages customers to purchase more, knowing they can split payments over time. This increase in flexibility can significantly boost AOV and overall sales for your Shopify Plus store.
• Enhanced Customer Experience and Convenience: By offering an alternative to traditional credit, BNPL appeals to shoppers who prefer not to use credit cards or pay high upfront costs. This flexibility improves the shopping experience, making customers feel more in control of their spending.
• Broader Customer Appeal: BNPL is especially popular among younger demographics, including Millennials and Gen Z, who prioritize flexible spending. Adding BNPL can help attract these age groups, allowing your store to tap into a broader audience.
• Reduced Cart Abandonment: High upfront costs are a common reason for cart abandonment. By offering BNPL, you’re providing a solution for customers who might hesitate at checkout, potentially lowering cart abandonment rates and increasing completed purchases.
• Builds Brand Loyalty and Repeat Business: When customers feel a store offers convenient and flexible payment options, they’re more likely to return. BNPL fosters customer loyalty and encourage repeat purchases, which is valuable for growth-focused Shopify Plus stores.

Cons of Buy Now, Pay Later:

• Transaction and Processing Fees: Some BNPL providers charge fees to merchants for each transaction. These fees can vary but may impact profit margins, especially on lower-priced items. It’s essential to consider these costs when deciding on a BNPL provider.
• Risk of Customer Debt and Financial Strain: BNPL can sometimes lead to overspending, which may cause financial strain for some customers. This can impact your brand reputation if customers associate BNPL with financial difficulties.
• Longer Checkout Process: Adding BNPL can sometimes make the checkout process longer or more complex, as customers may need to create an account with the BNPL provider. For some shoppers, this added step could lead to frustration or even cart abandonment.
• Integration and Maintenance Costs: While Shopify Plus integrates with many BNPL providers, there might be costs associated with customization or maintenance if you’re using a more complex BNPL setup.
• Potential Brand Association with High Debt Options: Although BNPL is convenient, it’s sometimes seen as a debt solution. For some brands, this may not align with their image, especially if they focus on promoting financial well-being or sustainability.

How to Implement BNPL on Your Shopify Plus Store

Setting up Buy Now, Pay Later (BNPL) on your Shopify Plus store can be straightforward, thanks to Shopify’s compatibility with a range of BNPL providers. Here’s a step-by-step guide to help you get started:

1. Choose Your BNPL Provider

Start by researching BNPL options to find the provider that best fits your store’s needs and audience. Popular providers like Afterpay, Klarna, Affirm, and Sezzle each offer unique features, from interest-free plans to extended financing.

Think about what resonates most with your customers—whether it’s simplicity, flexibility, or brand recognition.

2. Check App Compatibility on the Shopify App Store

Most BNPL providers are available as apps on the Shopify App Store, making them easy to integrate.

Check the app’s compatibility with Shopify Plus, read reviews, and consider any setup requirements.

With Shopify Plus, these integrations are generally seamless, but it’s a good idea to ensure the app supports high-volume stores and offers solid customer support.

3. Set Up a Merchant Account with Your Chosen BNPL Provider

After selecting a BNPL provider, you’ll need to create a merchant account.

This setup typically involves providing your business details and verifying your Shopify Plus store. The provider will guide you through any specific requirements to get your account ready for transactions.

4. Install and Configure the BNPL App on Shopify

Once your account is set up, install the BNPL app directly from the Shopify App Store and follow the app’s configuration steps.

You’ll be able to customize certain settings to match your store’s branding, and the provider will guide you on how to display BNPL options at checkout.

5. Test the BNPL Integration

Before going live, it’s crucial to test the BNPL option. Run a few test transactions to ensure the payment process works smoothly, and confirm that BNPL is visible and functioning at checkout.

This step helps you identify any potential issues and provides peace of mind that your customers will have a smooth experience.

6. Promote BNPL as a Payment Option on Your Store

Letting customers know about BNPL can drive interest and encourage them to use it. Consider adding a banner on your homepage or mentioning BNPL in your product descriptions.

Highlighting BNPL at key points in the shopping journey can make customers aware of their payment flexibility right when they’re ready to buy. Implementing BNPL on your Shopify Plus store doesn’t have to be complicated.

With the right provider and a smooth setup, you can offer your customers a flexible payment option that enhances their shopping experience and potentially boosts your sales.

Key Considerations Before Offering BNPL Option to Your Customers

Implementing Buy Now, Pay Later (BNPL) on your Shopify Plus store can be a powerful move, but it’s essential to think through a few factors to ensure it aligns with your business goals and customer expectations. Here are some key considerations before integrating BNPL:

1. Understand Your Target Audience

Knowing your customer demographics is crucial when adding BNPL. BNPL is especially popular among younger audiences like Millennials and Gen Z, who value flexibility in their purchases.

If your products appeal to these demographics or budget-conscious shoppers, BNPL could be a great fit. However, for luxury or niche products with older customer bases, assess whether BNPL aligns with their preferences.

2. Consider the Costs Involved

While BNPL can drive conversions, it’s important to account for processing fees associated with each transaction, as BNPL providers typically charge a fee to merchants.

These fees vary by provider and can impact your profit margins, especially on lower-priced items. Weigh the potential revenue increase against these costs to see if it’s financially viable for your store.

3. Evaluate Potential Risks to Customer Financial Health

BNPL can sometimes lead to overspending for customers, resulting in financial strain or missed payments. This can reflect on your brand if customers feel pressured by their repayment schedules.

Consider providing clear information about BNPL terms, or even partnering with providers that are transparent about repayment requirements to promote responsible spending.

4. Integration Compatibility and Maintenance

While Shopify Plus integrates seamlessly with several BNPL providers, think about your long-term maintenance needs.

Managing additional payment options may require occasional updates, customer support, or technical assistance. Make sure your team has the resources to handle these requirements, or look for providers with strong support channels.

5. Align with Your Brand’s Values and Image

Lastly, consider whether BNPL aligns with your brand’s messaging. For brands focused on financial well-being, sustainability, or promoting a debt-free lifestyle, BNPL might seem contradictory.

Be clear on how BNPL fits with your brand image, and consider transparent messaging to communicate it as a supportive tool for customers, not a financial burden.

Thinking through these aspects helps you make an informed decision on adding BNPL, ensuring it benefits both your business and your customers.

Is BNPL Right for Your Shopify Plus Store?

Integrating Buy Now, Pay Later (BNPL) can be a valuable addition to your Shopify Plus store, offering customers the flexibility they need while helping your business increase sales, reduce cart abandonment, and build brand loyalty.

By evaluating the different BNPL providers, understanding the associated costs, and considering your store’s unique audience, you can determine if BNPL aligns with your goals.

For Shopify Plus merchants ready to elevate their customer experience, BNPL could be a strategic tool that enhances the entire shopping journey.

Whether you're aiming to boost average order values or attract new, younger customers, implementing BNPL is an option worth exploring.

With the right approach and integration, BNPL can play a pivotal role in driving growth and strengthening your brand’s relationship with customers.

Buy Now, Pay later FAQs

Q1. What are the best BNPL apps for Shopify Plus?

Popular options include Afterpay, Klarna, Affirm, and Sezzle. Each app offers unique features tailored to different customer needs, so choose one that aligns with your store’s audience and product offerings.

Q2. How much does it cost to implement BNPL on a Shopify Plus store?

While many BNPL apps are free to install, providers typically charge transaction fees to the merchant for each purchase. These fees vary by provider and are worth considering when evaluating the impact on your store’s profit margins.

Q3. Is BNPL suitable for all types of products?

BNPL works especially well for higher-priced items, where the ability to split payments can reduce purchase hesitation. However, it can be used for a variety of products, and the decision should ultimately depend on your target audience and average price points.

Q4. Can BNPL increase sales for Shopify Plus stores?

Yes, BNPL can drive conversions and increase Average Order Value (AOV) by making high-value purchases more accessible. It also attracts new customers, particularly younger demographics, who value payment flexibility.

Q5. Are there any risks involved with BNPL for merchants?

The main risks include transaction fees and potential brand association with customer debt if customers struggle with repayments. To minimize these, choose a reputable BNPL provider and consider offering guidance on responsible spending.