ProgramMatek: The Ultimate Guide to Buy Now, Pay Later in WooCommerce

In today’s digital world, offering flexible payment solutions is crucial for eCommerce businesses to meet customer needs and increase sales. With the rise of digital payment methods like Apple Pay and Google Pay, rigid payment strategies can cost businesses valuable customers and revenue. In fact, research shows that 48% of customers prefer online stores that provide multiple payment options. The primary reason for abandoned carts is the additional cost. To combat this, implementing a flexible payment solution can reduce cart abandonment and boost your store’s sales.

The Power of Buy Now, Pay Later (BNPL)

Integrating Buy Now, Pay Later (BNPL) with your WooCommerce store is a game-changer. This customer-friendly payment option allows customers to pay less upfront when they have a tight budget while giving you, the seller, increased sales. It’s a win-win situation.

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What Is Buy Now, Pay Later and Why Is It Essential for Your Business?

Buy Now, Pay Later (BNPL) is similar to credit cards but without the restrictions. It offers online buyers the option to split their purchases into monthly payments. As a WooCommerce store owner, you can promote your own purchase now, pay later financing or partner with third-party providers like Klarna, Affirm, or PayPal Credit.

This payment method is gaining popularity in WooCommerce. According to payments processing giant FIS Worldpay, BNPL is the fastest-growing eCommerce payment method worldwide and could reach $166 billion by 2023.

How Does It Work?

The BNPL method works when customers enter into an agreement that requires them to make payments on both the principal and interest of a loan. You can either handle it directly or choose a third-party provider to make things easier.

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For example, if you partner with a third-party provider like Affirm, when a customer selects the BNPL option, Affirm covers the full cost of the product and works with the buyer to collect their payment. In return, BNPL lenders like Affirm usually charge a fee of 3 to 5% of the sales.

BNPL providers typically conduct soft checks on customers to ensure they will repay the loan. They handle the loan and fraud concerns, allowing you to focus on your business.

Benefits of BNPL

Here are some benefits of offering BNPL payment on your WooCommerce store:

Improves Sales and Conversion Rate

With buy now, pay later in WooCommerce, customers are more likely to make purchases as they can pay in installments instead of the full amount upfront. By providing this option, you eliminate the barrier of high product prices and encourage customers to complete their purchases. This leads to improved average order value and conversion rates.

Customers Appreciate Payment Alternatives

Giving customers multiple payment options empowers them and shows your commitment to making their purchasing experience as smooth as possible. Offering BNPL as a payment option encourages repeat customers, positive word-of-mouth, and minimizes checkout conflicts.

Customers Spend More Money

Buy now, pay later in WooCommerce benefits both businesses and customers. Customers can afford their desired products without paying the full amount upfront, while you can charge extra for products with monthly payment options. For example, customers may hesitate to spend $800 on an online course, but they might easily sign up for the same course with ten monthly payments of $89. With BNPL, customers spend more and spread out their payments, avoiding a large one-time payment.

Reduces Payment Fraud Threats

By choosing a reliable BNPL payment provider, you can decrease the risk of payment fraud. BNPL companies handle installment payments for your online store, reducing the chances of problems like customers failing to make remaining payments, expired credit cards, and chargebacks. This lets you focus on your business while the BNPL provider takes care of these issues.

Provides Marketing Exposure

BNPL companies have their own vendor directories. Partnering with a BNPL provider can help your store gain exposure in their shopping directory, boosting your marketing efforts and attracting new customers.

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Why Offer Buy Now, Pay Later Payment?

Implementing buy now, pay later in WooCommerce helps businesses improve conversion rates and average order value on their online store. By making the purchase process easier for your customers, you give them the option to spend zero at the time of purchase or pay a small amount upfront and then pay the remaining amount over time.

There are various buy now, pay later models available, such as splitting the entire amount into 3 or 4 installments or allowing customers to pay the full amount after a specific number of days. The beauty of buy now, pay later is that your business receives the full payment upfront and is protected from potential scams. Meanwhile, customers enjoy the flexibility to buy what they desire and pay when it fits their budget.

Now, let’s dive into how you can enable buy now, pay later payment in WooCommerce.

How to Enable Buy Now, Pay Later Payment in Affirm WooCommerce

Integrating your business with the WooCommerce platform is simple. Just follow these steps, and you’ll be ready to offer Affirm as a free-to-use payment option for your customers.

Step 1: Add WooCommerce Plugin

  1. Go to your WordPress Dashboard, then to Plugins > Add New.
  2. Click on the Upload Plugin button and select the downloaded file.
  3. Click Install Now and then Activate.

Step 2: Find API Keys in Affirm Merchant Portal

After installing the Affirm Plugin into WooCommerce, follow these steps:

  1. Log in to the Affirm Merchant Portal and navigate to the API Keys section.
  2. Click on the API section.

Step 3: Configure the Affirm Plugin

Now, configure the Affirm Plugin by following these steps:

  1. Go to WooCommerce > Settings > Payments and choose Affirm.
  2. Select Enable and check the Affirm Sandbox box to try the payment gateway without processing real transactions.
  3. Enter the Public API Key and Private API Key obtained in Step 2.
  4. Choose a Transaction Mode.

Step 4: Configure the Affirm Payment Gateway

To configure how your customers see the Affirm interface during checkout, follow these steps:

  1. Choose Checkout Mode.
  2. Modal activates a pop-up during checkout.
  3. Redirect takes the customer offsite to complete the checkout process.
  4. Select an Affirm Color (blue, white, or black).
  5. Choose Show Learn More to display a link in Affirm monthly payment messaging.
  6. Use the Promo Messaging boxes to advertise Affirm as a payment method on your Category, Product, and Cart pages.
  7. Set the Order Minimum or Order Maximum (optional).
  8. Enable Debugging messages for troubleshooting purposes.
  9. Leave the Enable Enhanced Analytics box unchecked.
  10. Click Save Changes.
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That’s it! Now, your customers can easily select Affirm as a payment method at checkout.

Additional Payment Options to Boost Revenue

In addition to buy now, pay later, there are other popular alternative payment options that can uplift your business. Here are a few worth considering:

WP Simple Payments

WP Simple Pay is a fantastic plugin for enabling buy now, pay later payments. With a 14-day money-back guarantee, WP Simple Pay allows you to create payment forms without dealing with complex checkout processes. The free version of WP Simple Pay is highly functional, but upgrading to the paid version unlocks additional features.


Klarna is a flexible payment solution that lets you add Klarna payment methods of your choice to your checkout process. Using Klarna comes with no annual fees. It offers three payment plans, including a pay-in-four model, a pay-in-thirty model, and a monthly financing option. Download the Klarna app to start shopping online through Klarna.

PayPal Credit

PayPal Credit, previously known as “Bill Me Later,” is a free plugin that provides quick and easy payment solutions. It offers installment plans on purchases of $99 or more, with no interest charged if paid in full within six months. PayPal Credit provides users with a line of credit issued through Synchrony Bank, allowing for flexible payment durations based on creditworthiness.


Sezzle is an interest-free installment payment solution that splits the total price into smaller payments over at least six weeks. Sezzle does not perform a hard credit check, so it won’t impact your credit score. Customers pay 25% of the total purchase price upfront, with the remaining payments spread over three installments every two weeks.


Afterpay is a digital payment platform that offers short-term installment plans through its app. It’s free to use. To make a purchase, customers use a virtual credit card and pay the first of four payments upfront, with the rest spread over six weeks. Afterpay places a limit on how much credit it extends to users to ensure responsible spending.

Final Thoughts

Offering flexible payment solutions is a top priority for eCommerce businesses. Buy now, pay later in WooCommerce allows your customers to make immediate purchases and pay for them over weekly or monthly installments. By providing this option at checkout, you simplify the final purchase decision for your customers.

If you want to deliver the most pleasing shopping experience to your customers, improve average order value, increase revenue, and reduce payment fraud, consider the BNPL solutions mentioned above. Choose the option that best fits your budget and specific requirements.

Remember, with ProgramMatek as your partner, you can effortlessly integrate buy now, pay later into your WooCommerce store and reap the benefits of increased sales and customer satisfaction. Get started with ProgramMatek today!