Should your business offer BNPL?
Buy now, pay later (BNPL) sits at checkout across most industries, and it keeps growing because it works. Shoppers convert more often when a large payment splits into smaller ones. The part that gets less airtime is what BNPL costs a business to offer it.
With traditional BNPL, every purchase is a new loan. When a shopper chooses BNPL at checkout, the provider runs a credit check to decide whether to approve them.
That approval step works well for lower-priced products. Because the loan amounts are small, most shoppers are approved in seconds, which makes traditional BNPL a good fit for everyday items and impulse buys.
The benefits of BNPL for businesses
Splitting a payment makes a purchase feel more manageable, and that shows up across conversion, order size and reach.
- Higher conversion, less cart abandonment: A large total at checkout is one of the most common reasons a shopper stalls or leaves. Splitting that total into smaller, scheduled payments removes the moment of hesitation.
- Bigger average order value: Shoppers often add items or upgrade to a higher-tier product when the total is split, lifting AOV by around 20% to 40%.
- More repeat purchases: A smooth installment experience can build enough goodwill that shoppers return, particularly when your brand stays visible after the first purchase.
- A competitive checkout: In categories where competitors already offer BNPL, not having it can cost sales, since shoppers increasingly compare payment flexibility before they reach checkout.
The hidden downsides of BNPL for businesses
While the benefits on smaller orders are clear, here is where businesses tend to see risks when relying solely on traditional providers:
- Lower approval rates on high-value orders: Traditional BNPL originates a new loan with each purchase, so every order depends on a fresh credit decision. As basket size grows, fewer shoppers are approved, which makes BNPL more difficult for high-ticket ones.
- Third-party content across your site: BNPL integrations usually come with provider logos, messaging and promotional widgets on product pages, cart and checkout, putting another brand in front of your shoppers while they’re deciding what to buy.
- Remarketing to your customers: Many BNPL providers run their own shopping apps and marketplaces. Once a shopper signs up, the provider can promote similar products from other retailers to them, including your competitors.
- Brand reputation risk: If a shopper has a poor experience with the provider, such as late fees or a dispute over repayments, they may associate it with your brand.
Card-linked installments, built for higher-value orders
| Feature | Traditional BNPL | Splitit Card-Linked Installments |
| Best For | Lower-value everyday items | High-value, premium purchases |
| Credit Check | Yes (Real-time approval risk) | No (Uses existing available credit) |
| Average Order Value | ~$350 | $1,000+ |
| Customer Journey | Redirects to third-party app | White-labeled inside your checkout |
| Customer Data | Providers remarket to your customers | Your data stays yours |
How BNPL and credit-card installments work together
Shoppers increasingly expect to split larger payments at checkout, and one who can’t will often go where that option exists. The more useful question is which installment options earn their place for the shoppers you’re trying to reach, and for most merchants, that means offering more than one:
- Traditional BNPL for lower-value orders: A good fit for smaller baskets and for shoppers who don’t have a credit card.
- Card-linked installments for higher-value orders: A good fit for shoppers who already have credit on their card and want to spread a bigger purchase over monthly payments while keeping their card’s rewards.
Card-linked installments and traditional BNPL options reach different shoppers, so offering both helps you capture sales that one option alone would miss. Run them side by side and your own checkout data will show where each performs best, especially at the price points that drive most of your revenue.
Contact our sales team to see how Splitit’s credit-card installments could fit into your checkout.