What is BNPL?

Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them over time, typically through installment payments. BNPL services are often integrated into the checkout process of online and brick-and-mortar retailers.

What are the key features of BNPL?

• Immediate Purchase: Consumers can acquire goods or services immediately without having to pay the full price upfront.
• Installment Payments: Payments are made over a set period, which can range from a few weeks to several months, usually with fixed installments.
• No Interest (Sometimes): Many BNPL providers offer interest-free periods, although late fees or interest may apply if payments are missed.
• Easy Approval: Approval processes for BNPL are often simpler and quicker than traditional credit checks, making it accessible to a broader range of consumers.
• Integrated Checkout: BNPL options are typically offered directly at the point of sale

What are the benefits of BNPL?

• BNPL can significantly boost B2B SaaS sales and reduce contract abandonment by offering customers manageable, interest-free installment options, which increases conversion rates and encourages companies with limited cash availability to close on larger contracts.
• B2B SaaS businesses benefit from improved cash flow management since they receive full payment upfront, while the BNPL provider handles payment collection and assumes credit risk, reducing operational burden.
• BNPL services can help newer companies take advantage of your software product. Younger companies may not have as much cash liquidity, and can benefit from the ability to pay in installments, expanding your customer base and building long-term customer loyalty. 

What are things to consider for BNPL?

• Fees and Penalties: Late or missed payments can incur significant fees or interest, potentially leading to increased debt.
• Overspending: Easy access to credit can lead to overspending and financial strain if not managed responsibly.

Why use a BNPL for businesses? 

For B2B SaaS companies, BNPL can help your customers close on annual subscriptions without worrying about having the full amount of cash on hand. In other cases, it allows your customers to stay liquid to cover operational and development costs while paying for their tech stack in installments. 

How to offer BNPL to your customers

1. Choose a BNPL Provider

• Research Providers: Look for BNPL services that cater specifically to SaaS businesses, such as Capchase Pay. 
• Evaluate Fees: Compare transaction fees, payment terms, and integration options.
• Check Compatibility: Ensure the provider can integrate seamlessly with your billing and payment systems. Capchase Pay integrates with Hubspot and Salesforce for minimal manual work. Our APIs are also available to embed Capchase Pay into a digital checkout experience or another closing flow. 

2. Integrate with Your Platform

• Technical Integration: Work with your development team or the BNPL provider’s support to integrate the BNPL option into your checkout process.
• User Experience: Ensure that the option is clearly visible and easy to select during the checkout process.

3. Update Pricing Pages

• Promote BNPL Option: Clearly display the BNPL option on your pricing page, product pages, and checkout. Include information on payment terms. Or you can just offer it on a case-by-case basis to your customers using the Capchase Pay portal link! 

Call-to-Action: Use persuasive language to encourage customers to take advantage of the BNPL option, highlighting benefits like flexibility and affordability.