WHAT TO KNOW BEFORE YOUR BUSINESS ADDS BUY NOW, PAY LATER
“Buy now, pay later” is becoming common at large
retailers like Target, Ikea and Macy’s. More and
more small-business owners are allowing their
customers the ability to pay in installments, too.
In fact, 55% of local businesses use buy now,
pay later online and 5% offer it as an in-store
payment option, according to a February survey
from payments news site PYMNTS.com.
If you’re thinking about offering buy now, pay
later at your small business, here’s what you
need to know.
HOW BUY NOW, PAY LATER WORKS
Buy now, pay later involves three parties: the
customer, the merchant and the buy now,
pay later provider. When a customer makes a
purchase, the provider pays the merchant in
full, minus fees. Then the customer pays the
provider back in installments.