BNPL (Buy Now, Pay Later) gives customers the option to split payments into installments at checkout, which can improve conversion for higher-value transactions. Subotiz Payments supports three BNPL providers: Klarna, Afterpay, and Affirm. Each differs in supported scenarios, regional availability, and fee structure.
BNPL Method Comparison
Payment method | One-time payments | Subscriptions | Cross-border | Approval required |
|---|---|---|---|---|
Klarna | ✓ | ✓ | ✓ (approval required) | No |
Afterpay | ✓ | No | No | No |
Affirm | ✓ | No | No | No |
Note: BNPL methods are currently supported for US merchant accounts only. Customer availability varies by provider and region.
Klarna
Supports subscriptions, cross-border transactions, and multi-currency payments.
- Core capabilities
- Supported scenarios: One-time payments, subscription billing, and cross-border transactions.
- Local payments: Available once Subotiz Payments is enabled.
- Cross-border transactions: Require separate approval. Activation is handled through the account manager.
- Coverage
- Supported customer locations: United States, United Kingdom, and EU countries (Austria, Belgium, Germany, Netherlands, Switzerland, Denmark, Finland, Norway, Sweden, Czechia, France, Greece, Ireland, Italy, Poland, Portugal, Spain).
- Supported currencies: USD, GBP, EUR, CHF, CZK, DKK, NOK, NZD, PLN, RON, SEK.
- Fees
- Standard rate: 6% + $0.30 per transaction.
- Cross-border surcharge: +1.5%.
- Customer experience at checkout
- Pay Later: Customers complete their purchase and pay the full amount at a later date. Available payment terms vary by market and customer eligibility. When payments are made on time, no interest is typically charged.
- Pay in Installments: Customers can split the purchase amount into multiple payments. Depending on the market and financing plan, installment options may be interest-free or may include interest and fees.
- Pay Now: Customers pay the full purchase amount immediately at checkout using a supported payment method, such as a bank card or local payment option.
- Subscription behavior
- Subscription support: Supports recurring billing after the initial customer authorization.
- Subsequent charges: Processed automatically without any customer action.
- Customer requirements
- Pay Later and installment options: Customers may be required to sign in to or create a Klarna account, depending on the market and eligibility requirements.
- Pay Now: Guest checkout may be available in certain markets.
- Transaction limits
Currency | Limit |
|---|---|
USD | $0 – $10,000 |
GBP | £0 – £5,000 |
EUR | €0 – €10,000 |
CHF | CHF 1 – CHF 5,000 |
CZK | CZK 0 – CZK 100,000 |
DKK | DKK 1 – DKK 100,000 |
NOK | NOK 1 – NOK 100,000 |
NZD | NZD 10 – NZD 2,000 |
PLN | PLN 0 – PLN 20,000 |
RON | RON 0 – RON 20,000 |
SEK | SEK 1 – SEK 100,000 |
Afterpay
Supports a fixed installment payment structure.
- Core capabilities
- Supported scenarios: Local one-time payments.
- Installment structure: Fixed 4 installments, charged every two weeks.
- Interest: Interest-free for eligible customers.
- Coverage
- Supported customer locations: United States.
- Supported currency: USD.
- Fees
- Standard rate: 6% + $0.30 per transaction.
- Transaction limit
- Amount range: $1 – $4,000 USD.
- Customer requirements
- Requires an Afterpay account.
Affirm
Supports flexible installment plans for higher-value transactions.
- Core capabilities
- Supported scenarios: Local one-time payments.
- Installment period: 3 – 36 months (based on credit assessment).
- Coverage
- Supported customer locations: United States only.
- Supported currency: USD.
- Fees
- Standard rate: 6% + $0.30 per transaction.
- Transaction limit
- Amount range: $35 – $30,000 USD.
- Customer requirements
- Customers must complete Affirm's approval process and are subject to credit assessment.
Note: Fees shown are default reference values and may vary based on merchant agreement.
Visibility conditions
A BNPL method appears at checkout only when all conditions are met:
- Merchant entity is within the supported region.
- Customer location is within the supported region.
- Transaction currency is supported by the selected method.
- Transaction amount is within the provider's limits.
When the customer's billing address is unavailable, Subotiz may use browser signals to infer the customer's location.
Activation
BNPL methods become available after Subotiz Payments is enabled and the selected BNPL provider has been activated for the merchant account.
Klarna supports subscriptions, cross-border transactions, and multi-currency payments. Afterpay provides a fixed installment structure for eligible purchases. Affirm offers longer repayment terms and higher transaction limits for qualified customers.