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The complete guide to buy now pay later

'One-size fits all' doesn't exist in the BNPL world. Better understand what options are available and best suited to your business with this guide.


There is no denying the impact of buy now pay later (BNPL). In a short time, it has cemented itself as a bona fide payment method with shoppers worldwide. For online stores, offering BNPL is vital for keeping shoppers happy and empowering them to buy more while feeling comfortable with their choices. In this complete guide to buy now pay later, we look at its effect on eCommerce and how it gives consumers more purchasing power.

Why Buy Now Pay Later is right for your business

The flexibility of buy now pay later gives your customers more options, as they can spread the payments over a set period and, in some cases, not even pay interest. The result is higher average order values and more sales for your business. BNPL can also reduce cart abandonment, which currently sits around 70% across all industries.

Find out more about why buy now pay later is right for your business

The facts you need to know about Buy Now Pay Later

Buy now pay later hasn't wasted any time in becoming one of the most popular payment methods for customers. But if you're still on the fence, these statistics showcasing BNPL's strength should be enough to convince you. BNPL accounts for 2.1% of the global market payment share and is expected to become a $680 billion industry by 2025. It's also hugely popular with younger demographics: 30% and 36% of BNPL users are millennials and Generation Z, respectively.

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How alternative payments help you connect with your customer base

Keeping customers happy can be tricky and often requires more than merely selling good products and services. They need to buy into your brand, and one way to do that involves fulfilling their needs. For instance, offering alternative payment options like BNPL helps build trust as they'll see you as a forward-thinking company that cares about its customers and wants to give them alternative ways to buy items. BNPL can also encourage shoppers to make repeat purchases because they'll see you as the online store that offers flexibility and convenience when it comes to paying.

Find out more about how alternative payments help you connect with customers

What to consider with a point-of-sale finance provider

There’s a wide range of point-of-sale finance providers available today and it can be difficult finding one that’s suited to your business needs. Before partnering with a finance provider, you should look for a company offering:

  • A broad range of solutions and products
  • Excellent customer service with quick response times
  • An easy and seamless integration process
  • High acceptance rates
  • Comprehensive basket coverage

Find out more about what to consider with a point of sale provider

Empower your customers by partnering with retail finance providers

Partnering with the right retail finance provider helps empower your customers by unlocking their buying power. With multiple payment options available at checkout, consumers will feel more confident about making their desired purchases. Not only that, but they will enjoy an improved customer experience that leads to repeat purchases and happy customers. Around 90% of happy customers will buy from stores again, and alternative payment methods like BNPL give them more flexibility when making those purchases.

Find out more about empowering your customers by partnering with retail finance providers

Debunking some of the buy now pay later myths

Buy now pay later is still a relatively new concept in the payment world. And while demand continues surging, there are still a few misconceptions about what it is and how it works. One of the biggest ones is that BNPL is limited in terms of instalment periods and borrowing amounts. This misconception is prevalent in part because of the popularity of ‘pay in 3’ products. However, providers like Deko can cover baskets up to £25,000 and offer repayment periods of up to 60 months. By better understanding BNPL, shoppers and merchants alike will be in a better position to benefit from this flexible payment method.

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4 things your business is missing out on by not offering flexible payments

An increasing number of shoppers now expect eCommerce businesses to offer BNPL at checkout. You're missing out if you're not already providing this alternative payment option to customers. Buy now pay later helps attract new customers and empowers them to buy products with flexible payments. It's also known to increase customer spending, with around 53% of shoppers spending more when they use BNPL.

Find out more about the 4 things your business is missing out on by not offering flexible payments

5 reasons your electronics store should offer customer finance

If you are an electronics store, offering finance can unlock buying power for customers and help you sell more items. By spreading the cost, your shoppers can feel more confident purchasing those big-ticket items like TVs and computers. This will increase the likelihood of them shopping with you as some of the financial burden will be alleviated as they don't need to fork out large sums in one go.

Find out more about why your electronics store should offer customer finance

10 things you should know about financing for your online store

Offering finance for your online store increases the chances of success, as you can win more customers, boost average order value and reduce cart abandonment figures. But how does customer financing help? Offering flexible payments increases your appeal to shoppers looking for alternative ways to pay, while finance also aids with customer loyalty: using payment options shoppers want can increase repeat business by an impressive 80%. Finance options like BNPL also appeal to important buying demographics, such as millennials and Generation Z.

Find out more about what you should know about financing for your online store

The Dos and Don’ts of offering finance as an outdoor furniture and living retailer

Outdoor living items are big business, especially during the warmer months when shoppers have grand designs about sprucing up their outside space. Offering finance as an outdoor furniture retailer is a smart way to boost business and sell more items, but you want to do it the right way. Don't treat all of your customers the same, thinking there's a one-size-fits-all finance solution. Instead, offer them multiple options that meet their different individual needs.

Find out more about the dos and don’ts of offering finance as an outdoor furniture and living retailer

How to use Will I Qualify with Deko

Will I Qualify from Deko is a smart digital experience allowing your customers to check their eligibility for finance. It removes the guesswork from applications while giving shoppers more clarity over their acceptance chances. It uses a simple website plugin that sits nicely on your homepage and the individual product pages on your website. The result? An easy-to-use eligibility checker.

Find out more about Deko’s Will I Qualify

Deko products: Everything you need to know about our finance options

More and more shoppers are turning to alternative finance options to buy products and services. Indeed, finance is becoming increasingly important, especially as people feel the pinch of rising inflation. With Deko, you can empower customers with responsible lending that helps them spread the cost of purchases. Our services include:

In addition to these finance options, we’re the UK’s only multi-lender provider. This means we have a panel of lenders in the background during the application process so borrowers can increase their chances of finding suitable finance.

Find out more about Deko’s finance products and services

Highlighting payment options to improve conversions

Before committing to a purchase, shoppers may find and favourite an item online, see it several times on social media and be in-store to view it first-hand. Yet, the cost may stop them from clearing that final hurdle and making a purchase. This is where highlighting payment options at checkout helps, as it provides customers with more opportunities to pay and helps them spread the cost of an item. But don't just limit your finance offering to the checkout – highlighting available payment methods throughout the buying journey can inform customers earlier about the options you offer as well as give them more confidence to purchase items. The result is increased conversions.

Find out more about highlighting payment options to improve conversions

We have retail finance in place, but how can we get more application success?

Increased revenue, more customers and a higher online conversion rate all feature highly on the lists of merchants' ambitions. However, it's much easier said than done, and merchants need to have an active approach to winning more customers and increasing average order value. Offering finance is one way to achieve this, as it gives shoppers more flexibility when it comes to paying.

Find out more about Deko’s retail finance options

How a multi-lender option increases conversion rates at checkout

What is a multi-lender, and how does it work? In layman's terms, it enables merchants to offer financial flexibility at checkout via a multi-lender panel ensuring more customers qualify for finance. Suppose a customer is turned down for finance from the first lender. In that case, another one enters the fray – all the while, the shopper's experience isn't disrupted as the decision process happens in the background. It's a fluid way for you to offer finance to more people.

Find out more about multi-lender and how it helps conversion rates at checkout

The benefits of offering consumer finance as a jewellery and watch store

Nothing makes a statement quite like a standout timepiece or glistening pair of earrings. Offering finance to your customers gives them more buying power, whether they're buying a watch or jewellery for themselves or a gift for someone else. Finance makes those luxury purchases more attainable and offers consumers flexible options for how to repay the item's cost. It also means you can increase average order sizes and reduce checkout drop-offs as shoppers feel more confident about buying higher-priced items.

Find out more about the benefits of offering consumer finance as a jewellery and watch store

Final thoughts

Buy now pay later has become an integral part of the payments ecosystem. Shoppers have come to rely on it as an important option at checkout, with its flexibility capable of boosting customer confidence. Offering buy now pay later, and other flexible finance options will give your store an excellent chance of increasing average order value and securing more sales.

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