How to Use PayPal Buy Now Pay Later for Business

PayPal Buy Now Pay Later for Business is a flexible payment option that lets customers split purchases into manageable installments while businesses get paid upfront. The service helps increase sales by attracting buyers who prefer spreading out their payments without interest or fees if paid on time.

For businesses, integrating PayPal’s Buy Now Pay Later option is simple and can improve conversion rates and average order values. It works within your existing PayPal checkout, which makes the buying experience smooth and trustworthy. But how does it work? And how can it benefit your business?

Let’s take a look at what the option is and how it can benefit your business.

What is PayPal Buy Now Pay Later for Business?

PayPal Buy Now Pay Later for Business is a payment solution that allows customers to split their purchases into interest-free installments while businesses receive the full payment upfront.¹ The service, often called “Pay in 4,” allows shoppers pay over time without extra fees if payments are made on schedule.² Integrating this option can help increase sales by making higher-priced items more accessible and increasing conversion rates.³

The setup is straightforward and integrates smoothly with existing PayPal checkout systems, so the experience is easy and straightforward for both merchants and customers.⁴

By providing flexible payment options, businesses can attract more buyers, reduce cart abandonment and help with customer satisfaction.⁵

Benefits of Using PayPal Buy Now Pay Later for Business

Offering PayPal Buy Now Pay Later for Business can significantly enhance sales and customer satisfaction. Businesses benefit from higher conversion rates, as flexible payment options encourage customers to complete purchases they might otherwise postpone.² There are several other benefits and potential challenges, so let’s explore them together.

While each payment option comes with its own strengths and drawbacks, the right choice often depends on your business model, target audience and cash flow needs. PayPal Buy Now Pay Later for Business is flexible for customers and instant funding for merchants, so it’s ideal for eCommerce and service-based businesses.

However, alternatives such as credit cards, Klarna and Affirm may appeal to specific customer preferences or offer different fee structures. So with that being said, it’s crucial to evaluate your customers’ payment habits and your own operational priorities so you can select the most effective mix of payment solutions for long-term growth.

How to Set Up PayPal Buy Now Pay Later for Your Business

Step 1: Create or Confirm Your PayPal Business Account
Make sure you have a verified PayPal Business account. If not, sign up and provide your business details, tax info and link a bank account. A verified account is necessary to enable Buy Now Pay Later features and receive payments smoothly.

Step 2: Enable Installment Payment Features
Log into your PayPal dashboard, go to “Payment Options,” and enable plans like Pay in 4 or Pay Monthly.¹ PayPal manages risk and payments while you get paid upfront, which provides customers with flexible installment options.

Step 3: Integrate PayPal into Your eCommerce Platform
Connect PayPal to your online store via plugins for platforms like Shopify or WooCommerce, or use PayPal’s API or partners like Spreedly for custom sites.² This ensures BNPL appears as a payment option during checkout.

Step 4: Display BNPL Options at Checkout
Make BNPL visible at checkout and on product pages with labels like “Pay in 4.” Clear display helps customers understand they can split payments, encouraging more purchases.³

Step 5: Customize Your Promotions
Use PayPal’s free marketing materials, banners, pop-ups and emails to promote BNPL.⁴ Highlight flexible payments in your campaigns to increase customer awareness and drive higher sales.

Step 6: Test the Checkout Process
Before launching, test BNPL on various devices and browsers to make sure the experience is smooth and error-free.⁵ Fix issues to prevent cart abandonment and provide a seamless buying experience.

Wise Business Could Help Your Company Save on Global Payments

Comparing PayPal Buy Now Pay Later to Other Payment Options

PayPal Buy Now Pay Later for business stands out for its ability to boost customer purchasing power while making sure merchants get paid upfront.² However, it’s not the only option on the market. Businesses should compare it to other payment methods to choose what best fits their customers’ needs and sales goals.⁴ Below is a quick comparison table, followed by a breakdown of each option.

PayPal Buy Now Pay Later

PayPal Buy Now Pay Later lets customers split payments into installments, often interest-free if on time. Merchants get paid upfront while PayPal takes the repayment risk. Integrated into PayPal’s secure platform, it’s generally easy to set up, works with most eCommerce sites, and appeals to shoppers wanting flexible, trusted payment options.

Credit Cards
Credit cards offer revolving credit, rewards and widespread familiarity. They process payments quickly, but come with merchant fees and possible chargebacks. Customers may face interest if unpaid in full. Despite the costs, credit cards remain popular for convenience and perks, often driving up higher-value purchases.

Klarna
Klarna provides installment and delayed payments, appealing to budget-conscious buyers. It’s a “try before you buy” model that boosts conversions by reducing purchase hesitation. Merchants get instant payouts while Klarna takes the repayment risk, similar to PayPal Buy Now Pay Later, and it is well-suited for fashion, beauty and impulse-driven online shopping.

Affirm
Offers fixed-term monthly plans with no hidden fees, often used for big-ticket purchases. Customers know total costs upfront, but interest rates may be higher than PayPal Pay in 4. Merchants receive full payment at once, while Affirm manages customer repayments over months or years.

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

Use Wise Business >>

Final Thoughts

PayPal Buy Now Pay Later gives businesses a powerful tool to attract more customers, increase average order value, and improve conversion rates.³ By offering flexible payment schedules while still receiving funds upfront, merchants can enjoy improved cash flow without taking on extra risk. Its integration with PayPal’s trusted platform also means buyers feel secure when making purchases.⁴ Other options are available like Klarna or Affirm, and they have their strengths, but, ultimately, it’s about meeting customers where they are and making payment as easy as possible.¹

Sources:

1. PayPal Installment Payments
2. Stax Payments – PayPal Pay Later
3. Merchant Maverick – PayPal Pay in 4
4. Spreedly Blog – How Spreedly and PayPal Simplify eCommerce
5. Jotform Blog – Does PayPal Offer Buy Now Pay Later?